Within three weeks of being sworn in by Governor Greg Abbott on Aug. 1, 2026, the new Texas Comptroller of Public Accounts (the “Comptroller,”) Don Huffines, has announced and begun implementing a “landmark taxpayer-friendly initiative” to “reform the way the state collects taxes and fees to ensure fairness, transparency and respect for all Texas taxpayers” known as the Taxpayer First Project. Stated to be the most significant reform of tax administration under the Comptroller in decades, the new policies will aim to, among other things, modernize tax administration including audit operations, expedite refunds, speed up the administrative hearings process, and end retroactive policy changes.

A Comprehensive Performance Review

The announcement followed a previous release, made within days of the new Comptroller taking office, that a “comprehensive performance review” of the Comptroller’s office would be undertaken to evaluate “all aspects of agency operations including business processes, vendor contracts and administrative structure measured against best practices in the private sector” with a view to “identify inefficiencies and find savings for taxpayers.” The Comptroller’s office is responsible for collecting and administering more than 100 separate taxes and fees including local sales taxes collected on behalf of more than 1,800 localities, totaling in the hundreds of billions every year. As of July 2026, the Comptroller employed 2,933 to carry out these functions.[1]

The release also indicated that the Comptroller has already installed new leadership over tax administration. Two weeks ago, Chris Blackwell announced on LinkedIn that he had joined the Comptroller’s office as General Counsel and Associate Deputy Comptroller. Blackwell was formerly Assistant General Counsel at the agency from 2014 through 2018. In addition, the new Comptroller has indicated that audit staff will be increased but a lot of auditors will be moved to auditing government from auditing businesses for taxes.[2]

What to Expect Going Forward

As a result of the restructuring, it appears that top positions at the agency may have changed hands over the last two weeks or so, and other internal changes may also be underway. As in the case of the IRS, it is expected the restructuring may cause delays, at least in the short term, in the Comptroller’s office’s processing times and responsiveness. It also remains to be seen how administrative processes, including audits, hearings and tax policy guidance, as well as various taxpayer services, will be affected by the reform process in the longer term.

For questions or to discuss any of the foregoing, please contact Kean Miller’s tax team: Jaye Calhoun at (504) 293-5936, Willie Kolarik at (225) 382-3441, or Divya Jeswant at (504) 293-5766.

Jaye Calhoun, Willie Kolarik, and Divya Jeswant are members of Kean Miller’s Tax group, which advises a variety of clients on state and local tax (SALT), federal, and estate planning matters. The team works collaboratively to develop practical, multidisciplinary strategies that anticipate issues, minimize risk, and resolve complex tax issues efficiently, whether through negotiations or formal litigation proceedings.

[1] comptroller.texas.gov/transparency/reports/cpa-operations/staff-compensation.php.

[2] cbsnews.com/texas/news/search-fraud-huffines-plans-shift-auditors-texas-comptrollers-office-auditing-businesses-government.