TX HB3994

Requires that when computing interest on delinquent taxes, the delinquent amount be reduced by any overpayments of the same tax made by the taxpayer for the same or preceding periods

Applies the same offset calculation for computing tax penalties, reducing the amount of tax due by any overpayments for the same or preceding periods before penalties are assessed

Modifies refund interest calculations so that overpayments or erroneous payments are reduced by any underpayments of the same tax from the same or preceding periods before interest accrues

Changes the comptroller's authority regarding sales tax offsets from permissive ("may") to mandatory ("shall"), requiring the comptroller to offset overpayments against underpayments, penalties, and interest

Takes effect immediately upon receiving a two-thirds vote of both legislative chambers, otherwise effective September 1, 2025; amendments are designated as clarifications of existing law