81R8782 CBH-D
By: Kolkhorst H.B. No. 2505
A BILL TO BE ENTITLED
AN ACT
relating to the rates and imposition of the state sales and
franchise taxes and to the allocation of certain revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.051(b), Tax Code, is amended to read
as follows:
(b) The sales tax rate is 6.75 [6-1/4] percent of the sales
price of the taxable item sold.
SECTION 2. Sections 151.801(a) and (c), Tax Code, are
amended to read as follows:
(a) Except for the amounts allocated under Subsections (b)
and (c) and Section 151.802, all proceeds from the collection of the
taxes imposed by this chapter shall be deposited to the credit of
the general revenue fund.
(c) Except for the amount allocated under Section 151.802
and subject [Subject] to Subsection (c-1), the proceeds from the
collection of the taxes imposed by this chapter on the sale,
storage, or use of sporting goods shall be deposited as follows:
(1) an amount equal to 94 percent of the proceeds shall
be credited to the Parks and Wildlife Department and deposited as
specified in the Parks and Wildlife Code; and
(2) an amount equal to six percent of the proceeds
shall be credited to the Texas Historical Commission and deposited
as specified in Section 442.073, Government Code.
SECTION 3. Subchapter M, Chapter 151, Tax Code, is amended
by adding Section 151.802 to read as follows:
Sec. 151.802. ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX
RELIEF FUND. All proceeds, other than the amount of the proceeds
allocated under Section 151.801(b), from the collection of taxes
imposed by this chapter attributable to the portion of the tax rate
in excess of 6.25 percent shall be deposited to the credit of the
property tax relief fund under Section 403.109, Government Code.
SECTION 4. Sections 171.002(a), (b), and (d), Tax Code, are
amended to read as follows:
(a) Subject to Section [Sections] 171.003 [and 171.1016]
and except as provided by Subsection (b), the rate of the franchise
tax is 0.75 [one] percent of taxable margin.
(b) Subject to Section [Sections] 171.003 [and 171.1016],
the rate of the franchise tax is 0.375 [0.5] percent of taxable
margin for those taxable entities primarily engaged in retail or
wholesale trade.
(d) A taxable entity is not required to pay any tax and is
not considered to owe any tax for a period if:
(1) the amount of tax computed for the taxable entity
is less than $1,000; or
(2) the amount of the taxable entity's total revenue
from its entire business is less than or equal to $1 million
[$300,000] or the amount determined under Section 171.006 per
12-month period on which margin is based.
SECTION 5. Section 171.006(b), Tax Code, is amended to read
as follows:
(b) On [Beginning in 2010, on] January 1 of each
even-numbered year, the amounts prescribed by Sections
171.002(d)(2)[, 171.0021,] and 171.1013(c) are increased or
decreased by an amount equal to the amount prescribed by those
sections on December 31 of the preceding year multiplied by the
percentage increase or decrease during the preceding state fiscal
biennium in the consumer price index and rounded to the nearest
$10,000.
SECTION 6. Section 171.101(a), Tax Code, is amended to read
as follows:
(a) The taxable margin of a taxable entity is computed by:
(1) determining the taxable entity's margin, which is
the lesser of:
(A) the following percentage [70 percent] of the
taxable entity's total revenue from its entire business, as
determined under Section 171.1011:
(i) 25 percent, if the amount of the taxable
entity's total revenue from its entire business is less than or
equal to $10 million;
(ii) 50 percent, if the amount of the
taxable entity's total revenue from its entire business is more
than $10 million but less than or equal to $50 million; and
(iii) 70 percent, if the amount of the
taxable entity's total revenue from its entire business is more
than $50 million; or
(B) an amount computed by:
(i) determining the taxable entity's total
revenue from its entire business, under Section 171.1011;
(ii) subtracting, at the election of the
taxable entity, either:
(a) cost of goods sold, as determined
under Section 171.1012; or
(b) compensation, as determined under
Section 171.1013; and
(iii) subtracting, in addition to any
subtractions made under Subparagraph (ii)(a) or (b), compensation,
as determined under Section 171.1013, paid to an individual during
the period the individual is serving on active duty as a member of
the armed forces of the United States if the individual is a
resident of this state at the time the individual is ordered to
active duty and the cost of training a replacement for the
individual;
(2) apportioning the taxable entity's margin to this
state as provided by Section 171.106 to determine the taxable
entity's apportioned margin; and
(3) subtracting from the amount computed under
Subdivision (2) any other allowable deductions to determine the
taxable entity's taxable margin.
SECTION 7. Effective January 1, 2011, Section 171.101(a),
Tax Code, is amended to read as follows:
(a) The taxable margin of a taxable entity is computed by:
(1) determining the taxable entity's margin, which is
the lesser of:
(A) the following percentage [70 percent] of the
taxable entity's total revenue from its entire business, as
determined under Section 171.1011:
(i) 25 percent, if the amount of the taxable
entity's total revenue from its entire business is less than or
equal to $10 million; and
(ii) 50 percent, if the amount of the
taxable entity's total revenue from its entire business is more
than $10 million; or
(B) an amount computed by:
(i) determining the taxable entity's total
revenue from its entire business, under Section 171.1011;
(ii) subtracting, at the election of the
taxable entity, either:
(a) cost of goods sold, as determined
under Section 171.1012; or
(b) compensation, as determined under
Section 171.1013; and
(iii) subtracting, in addition to any
subtractions made under Subparagraph (ii)(a) or (b), compensation,
as determined under Section 171.1013, paid to an individual during
the period the individual is serving on active duty as a member of
the armed forces of the United States if the individual is a
resident of this state at the time the individual is ordered to
active duty and the cost of training a replacement for the
individual;
(2) apportioning the taxable entity's margin to this
state as provided by Section 171.106 to determine the taxable
entity's apportioned margin; and
(3) subtracting from the amount computed under
Subdivision (2) any other allowable deductions to determine the
taxable entity's taxable margin.
SECTION 8. Sections 171.0021 and 171.1016, Tax Code, are
repealed.
SECTION 9. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 10. This Act applies only to a report originally due
on or after January 1, 2010.
SECTION 11. (a) Sections 151.051(b) and 151.801(a) and
(c), Tax Code, as amended by this Act, and Section 151.802, Tax
Code, as added by this Act, take effect October 1, 2009.
(b) Except as provided by Section 7 of this Act and
Subsection (a) of this section, this Act takes effect January 1,
2010.