A person may sue the state to recover a tax paid under protest, but the suit must be filed within 91 days of the protest payment. The state may also counterclaim in some cases, and taxpayers must keep and produce records to support their tax claims.
Sec. 112.052. TAXPAYER SUIT AFTER PAYMENT UNDER PROTEST. (a) A person may bring suit against the state to recover a tax required to be paid to the state if the person has first paid the tax under protest as required by Section 112.051. (b) A suit under this section must be brought before the 91st day after the date the protest payment was made, or the suit is barred. (c) The state may bring a counterclaim in a suit brought under this section if the counterclaim relates to taxes imposed under the same statute and during the same period as the taxes that are the subject of the suit and if the counterclaim is filed not later than the 30th day before the date set for trial on the merits of the suit. The state is not required to make an assessment of the taxes subject to the counterclaim under any other statute, and the period of limitation applicable to an assessment of the taxes does not apply to a counterclaim brought under this subsection. (d) A taxpayer shall produce sufficient records and supporting documentation appropriate to the tax for the transactions in question to substantiate and enable verification of a taxpayer's claim relating to the amount of the tax, penalty, or interest that has been assessed or collected or will be refunded, as required by Section 111.0041. Acts 1981, 67th Leg., p. 1512, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1983, 68th Leg., p. 1373, ch. 283, Sec. 6, eff. Sept. 1, 1983; Acts 1989, 71st Leg., ch. 232, Sec. 5, eff. Sept. 1, 1989; Acts 1993, 73rd Leg., ch. 486, Sec. 7.01, eff. Sept. 1, 1993. Amended by: Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 4.03, eff. October 1, 2011. Acts 2021, 87th Leg., R.S., Ch. 331 (H.B. 2080), Sec. 5, eff. September 1, 2021. Acts 2025, 89th Leg., R.S., Ch. 138 (S.B. 266), Sec. 4, eff. May 24, 2025.