A person may sue the comptroller over certain tax, penalty, or interest amounts only after specified redetermination steps, must pay undisputed amounts, and must file within 90 days; intervention is not allowed.
Sec. 112.201. SUIT AFTER REDETERMINATION. (a) A person may sue the comptroller to dispute an amount of tax, penalty, or interest assessed in a deficiency redetermination or jeopardy redetermination under Chapter 111 if the person has: (1) filed a request for redetermination under Chapter 111; (2) obtained a redetermination under Chapter 111 that includes a finding by the comptroller of the disputed and undisputed amounts; and (3) filed a motion for rehearing of the redetermination that complies with Chapter 2001, Government Code, and that states the specific grounds of error and the disputed amounts associated with the grounds of error. (b) A person bringing a suit under this subchapter shall pay, as provided by Chapter 111, the redetermination amounts that are not disputed in the motion for rehearing. The failure to pay an undisputed amount does not affect the jurisdiction of a court to consider a suit that complies with Subsection (a). (c) A person bringing a suit under this subchapter may pay the disputed amounts as provided by Chapter 111. A disputed amount that is not paid as provided by Chapter 111 and that is determined to be due in a final judgment accrues penalties and interest as provided by Chapter 111. (c-1) After the comptroller has been timely served in a suit that complies with this subchapter, the comptroller and the attorney general: (1) are enjoined from collecting disputed amounts from the person bringing the suit during the pendency of the suit; and (2) are not enjoined from: (A) asserting tax liens; or (B) as an alternative to asserting tax liens, requiring the person to provide security: (i) in an amount sufficient to secure payment of the entire disputed amount, including penalties and accrued interest, that is the subject of the suit; and (ii) in the form of a cash deposit filed with the comptroller or paid into the registry of the court, a surety bond, a letter of credit, or another form of guarantee. (c-2) Damages may be awarded under Chapter 65, Civil Practice and Remedies Code, if the court determines that all or part of the enjoined collection amounts under Subsection (c-1) were disputed solely for delay. (d) A suit under this subchapter must be brought against both the comptroller and the attorney general. (e) A suit under this subchapter must be filed before the expiration of 90 days after the issue date of the denial of the motion for rehearing or it is barred. (f) The disputed and undisputed amounts of the redetermination must be set out in the original petition. A copy of the motion for rehearing must be attached to the original petition filed with the court and to the copies of the original petition served on the comptroller and the attorney general. (g) A person may not intervene in a suit under this subchapter. Added by Acts 2021, 87th Leg., R.S., Ch. 331 (H.B. 2080), Sec. 10, eff. September 1, 2021. Amended by: Acts 2025, 89th Leg., R.S., Ch. 138 (S.B. 266), Sec. 9, eff. May 24, 2025.