Texas Senate Bill SB1541

Texas 2015 - 84th Regular

Caption

Relating to certain reporting requirements for taxable entities.

Impact

The proposed legislation affects various entities including corporations, limited liability companies, limited partnerships, and professional associations that are subject to franchise tax. By implementing these changes, SB1541 aims to create a more efficient reporting mechanism by staggering requirements based on the type of entity and their tax obligations. The bill would allow nonprofit entities and professional associations not subject to the franchise tax to have a set schedule for filing their reports, thereby ensuring that the state has consistent and accurate data without overwhelming organizations with frequent reporting.

Summary

SB1541 introduces changes to the reporting requirements for taxable entities, specifically targeting domestic and foreign limited partnerships and professional associations. The bill amends the Business Organizations Code to allow the Secretary of State to mandate periodic reports from these entities, although the requirement to file such a report would occur only once every four years for those not already obligated to submit a public information report to the comptroller. This shift aims to streamline reporting requirements and reduce the administrative burden on these organizations, allowing them to spend less time on compliance.

Contention

Discussion surrounding SB1541 may highlight differing viewpoints on the sufficiency of existing regulatory frameworks versus the need for reform. Proponents argue that the bill could simplify and clarify existing regulations to promote better compliance and transparency among entities, while opponents might caution that changes could lead to unintended consequences in oversight and accountability. Overall, the bill reflects a broader trend toward reforming business regulations in Texas to balance the needs of state oversight with the operational realities faced by business organizations.