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Bill

SB 1337

Relating to the computation of certain tax penalties and interest amounts.

89th Legislature (2025) Introduced by Brandon Creighton

SB 1337 changes how Texas calculates tax penalties and interest, potentially reducing compliance costs for taxpayers but affecting state revenue collection methods.

Left pending in committee
#taxation--general(i0815)
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Bill Summary · SB 1337

Legislative bill overview

SB 1337 modifies how Texas computes tax penalties and interest amounts owed to the state. The bill adjusts calculation methodologies that determine the financial consequences for tax non-compliance or late payment. Specific computational changes would affect both individual taxpayers and businesses owing back taxes.

Why is this important

Tax penalty and interest calculations directly impact how much Texans pay when they owe taxes, potentially affecting state revenue collection and taxpayer compliance costs. Changes to these formulas can create significant financial differences for those with substantial tax liabilities or repeated compliance issues. The modification could also influence voluntary versus enforced compliance rates across the state.

Potential points of contention

  • Revenue impact: Modifying penalty/interest calculations may reduce state tax revenue if the new formulas are less punitive, creating budget concerns
  • Fairness and compliance incentives: Changes could be viewed as either punitive or lenient depending on whether penalties increase or decrease relative to current law
  • Administrative complexity: Altering established computational methods requires IRS coordination and system updates, with potential implementation challenges

Compiled from official sources — confirm details with the bill’s official record.

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