Relating to the fee amounts prescribed by the secretary of state for expedited commercial and business record searches or filings and the exemption from the franchise tax and certain filing fees for veteran-owned businesses.
Impact
If enacted, HB 346 will directly influence the state's business regulations by modifying how fees for expedited services are determined and enacted. This could lead to reduced costs for differing types of business organizations whilst promoting a more efficient processing system. Furthermore, the exemption from certain taxes and fees for veteran-owned businesses is designed to relieve some financial burdens these businesses face, potentially fostering an environment conducive to growth for such entities. This amendment is slated to effectuate changes on September 1, 2025, which provides a lead-in period for businesses to adapt to the new regulations.
Summary
House Bill 346 aims to modify the fee structures prescribed by the secretary of state concerning expedited commercial and business record searches or filings. Additionally, the bill establishes exemptions from the franchise tax and certain filing fees specifically for veteran-owned businesses. By authorizing the secretary of state to set varying fees based on the type of business entity, the bill seeks to streamline processes associated with business filings while also promoting support for veteran entrepreneurs in Texas.
Sentiment
The sentiment around HB 346 appears largely positive, especially among supporters who see the bill as a significant step towards enhancing the operational capabilities of businesses in Texas. Advocates for veteran support noted that the proposed exemptions represent a long-overdue recognition of the contributions made by veterans to society and the economy. However, this positivity might be juxtaposed with concerns from other stakeholders who may view the emphasis on expedited processes as potentially compromising thoroughness and accountability in business registrations.
Contention
While the bill garnered considerable bipartisan support, there remains potential contention regarding the effectiveness of the fee changes and whether exemptions might lead to unintended consequences. Critics may argue that varying fee schedules could complicate the fee structure rather than simplify it, creating confusion. Furthermore, questions might arise about the parameters used to define veteran-owned businesses eligible for tax benefits — clarity will be essential to ensure that the legislation achieves its intended purpose without adverse effects.
Texas Constitutional Statutes Affected
Government Code
Chapter 405. Secretary Of State
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Chapter 481. Texas Economic Development And Tourism Office
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Chapter 2155. Purchasing: General Rules And Procedures
Relating to the amount of the total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report.
Relating to the amount of the fee imposed on certain sexually oriented businesses that is allocated to the sexual assault program fund and the allocation of certain other revenue to that fund; increasing the amount of a fee.
Relating to the amount of the total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to the reduction and plugging of orphaned oil and gas wells; providing for the imposition of a fee and an exemption from certain taxes and fees.
Relating to the reduction and plugging of orphaned oil and gas wells; providing for the imposition of a fee and an exemption from certain taxes and fees.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Reforms the organizational structure for the Department of Transportation and Development including its duties, powers, and responsibilities of officers and employees (EN INCREASE SD EX See Note)