Texas 2009 - 81st Regular

Texas House Bill HB1825 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R7131 BEF-D
2	2	By: Paxton H.B. No. 1825
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the computation of the franchise tax.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Sections 171.002(a), (b), and (d), Tax Code, are
10	10	amended to read as follows:
11	11	(a) Subject to Sections 171.003 and 171.1016 and except as
12	12	provided by Subsection (b), the rate of the franchise tax is:
13	13	(1) for taxable margin of $1 million or less, zero;
14	14	(2) for taxable margin that exceeds $1 million but
15	15	does not exceed $10 million, 0.5 percent of the taxable margin that
16	16	exceeds $1 million; and
17	17	(3) for taxable margin that exceeds $10 million,
18	18	$45,000 plus one percent of the taxable margin that exceeds $10
19	19	million.
20	20	(b) Subject to Sections 171.003 and 171.1016, for those
21	21	taxable entities primarily engaged in retail or wholesale trade,
22	22	the rate of the franchise tax is:
23	23	(1) for taxable margin of $1 million or less, zero;
24	24	(2) for taxable margin that exceeds $1 million but
25	25	does not exceed $10 million, 0.25 percent of the taxable margin that
26	26	exceeds $1 million; and
27	27	(3) for taxable margin that exceeds $10 million,
28	28	$22,500 plus 0.5 percent of the taxable margin that exceeds $10
29	29	million [for those taxable entities primarily engaged in retail or
30	30	wholesale trade].
31	31	(d) A taxable entity is not required to pay any tax and is
32	32	not considered to owe any tax for a period if [:
33	33	[(1)] the amount of tax computed for the taxable entity
34	34	is less than $1,000[; or
35	35	[(2) the amount of the taxable entity's total revenue
36	36	from its entire business is less than or equal to $300,000 or the
37	37	amount determined under Section 171.006 per 12-month period on
38	38	which margin is based].
39	39	SECTION 2. The heading to Section 171.006, Tax Code, is
40	40	amended to read as follows:
41	41	Sec. 171.006. ADJUSTMENT OF ELIGIBILITY FOR [NO TAX DUE,
42	42	DISCOUNTS, AND] COMPENSATION DEDUCTION.
43	43	SECTION 3. Section 171.006(b), Tax Code, is amended to read
44	44	as follows:
45	45	(b) On [Beginning in 2010, on] January 1 of each
46	46	even-numbered year, the amount [amounts] prescribed by Section
47	47	[Sections 171.002(d)(2), 171.0021, and] 171.1013(c) is [are]
48	48	increased or decreased by an amount equal to the amount prescribed
49	49	by that section [those sections] on December 31 of the preceding
50	50	year multiplied by the percentage increase or decrease during the
51	51	preceding state fiscal biennium in the consumer price index and
52	52	rounded to the nearest $10,000.
53	53	SECTION 4. Section 171.1015(d), Tax Code, is amended to
54	54	read as follows:
55	55	(d) Section 171.002(d) does not apply to an upper tier
56	56	entity if, before the attribution of any total revenue by a lower
57	57	tier entity to an upper tier entity under this section, the lower
58	58	tier entity does not meet the criteria of Section 171.002(d)
59	59	[171.002(d)(1) or (d)(2)].
60	60	SECTION 5. Sections 171.0021, 171.1016(d), and 171.204(b),
61	61	Tax Code, are repealed.
62	62	SECTION 6. This Act applies only to a report originally due
63	63	on or after the effective date of this Act.
64	64	SECTION 7. This Act takes effect January 1, 2010.