Texas House Bill HB3214

Texas 2009 - 81st Regular

Caption

Relating to the exemption of certain units conducting bingo games from the franchise tax.

Impact

The implementation of HB 3214 is expected to positively influence licensed charitable organizations that conduct bingo games by reducing their tax liabilities. This change in the law aligns with the state's aim to promote charitable activities and support organizations that serve the community. By exempting these units from the franchise tax, the bill seeks to enhance the financial viability of such units, encouraging them to continue their activities and contribute to local causes.

Summary

House Bill 3214 pertains to the exemption of certain units conducting bingo games from the franchise tax in the state of Texas. The bill introduces a new section to the Tax Code that defines what constitutes a 'unit' composed entirely of licensed authorized organizations. It aims to relieve these units from the financial burden of the franchise tax, which can be a significant cost for organizations engaged in charitable gaming activities. The effective date for this bill is set to January 1, 2010, and it specifically applies to reports that are originally due on or after that date.

Contention

While the bill might be perceived as beneficial to certain organizations, there may also be potential concerns surrounding fairness in taxation. Critics could argue that exempting specific entities from taxes could lead to inequities when compared to other similar organizations that do not benefit from this exemption. Additionally, discussions may arise regarding the appropriate regulation of gaming activities in Texas, considering the balance between supporting charitable causes and maintaining effective oversight over gaming operations.