HB 1937 (SB 266) – Streamlines audit dispute process

HB 1937 gives Texas taxpayers a faster, more flexible way to challenge audit results by allowing them to skip the usual redetermination process and head straight to court. If a taxpayer disagrees with the outcome of a managed audit on sales or gas taxes, they can file a notice within 60 days and potentially avoid a lengthy administrative hearing. This bill ensures that disputes can be resolved in district court without requiring full payment up front, reducing financial burdens and leveling the playing field. During the court case, the state cannot collect the disputed amount, though it can still file liens or request a financial guarantee. It also ensures penalties are waived during litigation if the taxpayer follows proper procedure. This bill reduces bureaucratic red tape, increases judicial access, and protects taxpayers from aggressive collections. It reflects a limited-government approach by emphasizing due process and transparency in tax enforcement.