Texas 2009 - 81st Regular

Texas House Bill HB2505 Compare Versions

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

Old	New	Differences
1	1	81R8782 CBH-D
2	2	By: Kolkhorst H.B. No. 2505
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the rates and imposition of the state sales and
8	8	franchise taxes and to the allocation of certain revenue.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 151.051(b), Tax Code, is amended to read
11	11	as follows:
12	12	(b) The sales tax rate is 6.75 [6-1/4] percent of the sales
13	13	price of the taxable item sold.
14	14	SECTION 2. Sections 151.801(a) and (c), Tax Code, are
15	15	amended to read as follows:
16	16	(a) Except for the amounts allocated under Subsections (b)
17	17	and (c) and Section 151.802, all proceeds from the collection of the
18	18	taxes imposed by this chapter shall be deposited to the credit of
19	19	the general revenue fund.
20	20	(c) Except for the amount allocated under Section 151.802
21	21	and subject [Subject] to Subsection (c-1), the proceeds from the
22	22	collection of the taxes imposed by this chapter on the sale,
23	23	storage, or use of sporting goods shall be deposited as follows:
24	24	(1) an amount equal to 94 percent of the proceeds shall
25	25	be credited to the Parks and Wildlife Department and deposited as
26	26	specified in the Parks and Wildlife Code; and
27	27	(2) an amount equal to six percent of the proceeds
28	28	shall be credited to the Texas Historical Commission and deposited
29	29	as specified in Section 442.073, Government Code.
30	30	SECTION 3. Subchapter M, Chapter 151, Tax Code, is amended
31	31	by adding Section 151.802 to read as follows:
32	32	Sec. 151.802. ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX
33	33	RELIEF FUND. All proceeds, other than the amount of the proceeds
34	34	allocated under Section 151.801(b), from the collection of taxes
35	35	imposed by this chapter attributable to the portion of the tax rate
36	36	in excess of 6.25 percent shall be deposited to the credit of the
37	37	property tax relief fund under Section 403.109, Government Code.
38	38	SECTION 4. Sections 171.002(a), (b), and (d), Tax Code, are
39	39	amended to read as follows:
40	40	(a) Subject to Section [Sections] 171.003 [and 171.1016]
41	41	and except as provided by Subsection (b), the rate of the franchise
42	42	tax is 0.75 [one] percent of taxable margin.
43	43	(b) Subject to Section [Sections] 171.003 [and 171.1016],
44	44	the rate of the franchise tax is 0.375 [0.5] percent of taxable
45	45	margin for those taxable entities primarily engaged in retail or
46	46	wholesale trade.
47	47	(d) A taxable entity is not required to pay any tax and is
48	48	not considered to owe any tax for a period if:
49	49	(1) the amount of tax computed for the taxable entity
50	50	is less than $1,000; or
51	51	(2) the amount of the taxable entity's total revenue
52	52	from its entire business is less than or equal to $1 million
53	53	[$300,000] or the amount determined under Section 171.006 per
54	54	12-month period on which margin is based.
55	55	SECTION 5. Section 171.006(b), Tax Code, is amended to read
56	56	as follows:
57	57	(b) On [Beginning in 2010, on] January 1 of each
58	58	even-numbered year, the amounts prescribed by Sections
59	59	171.002(d)(2)[, 171.0021,] and 171.1013(c) are increased or
60	60	decreased by an amount equal to the amount prescribed by those
61	61	sections on December 31 of the preceding year multiplied by the
62	62	percentage increase or decrease during the preceding state fiscal
63	63	biennium in the consumer price index and rounded to the nearest
64	64	$10,000.
65	65	SECTION 6. Section 171.101(a), Tax Code, is amended to read
66	66	as follows:
67	67	(a) The taxable margin of a taxable entity is computed by:
68	68	(1) determining the taxable entity's margin, which is
69	69	the lesser of:
70	70	(A) the following percentage [70 percent] of the
71	71	taxable entity's total revenue from its entire business, as
72	72	determined under Section 171.1011:
73	73	(i) 25 percent, if the amount of the taxable
74	74	entity's total revenue from its entire business is less than or
75	75	equal to $10 million;
76	76	(ii) 50 percent, if the amount of the
77	77	taxable entity's total revenue from its entire business is more
78	78	than $10 million but less than or equal to $50 million; and
79	79	(iii) 70 percent, if the amount of the
80	80	taxable entity's total revenue from its entire business is more
81	81	than $50 million; or
82	82	(B) an amount computed by:
83	83	(i) determining the taxable entity's total
84	84	revenue from its entire business, under Section 171.1011;
85	85	(ii) subtracting, at the election of the
86	86	taxable entity, either:
87	87	(a) cost of goods sold, as determined
88	88	under Section 171.1012; or
89	89	(b) compensation, as determined under
90	90	Section 171.1013; and
91	91	(iii) subtracting, in addition to any
92	92	subtractions made under Subparagraph (ii)(a) or (b), compensation,
93	93	as determined under Section 171.1013, paid to an individual during
94	94	the period the individual is serving on active duty as a member of
95	95	the armed forces of the United States if the individual is a
96	96	resident of this state at the time the individual is ordered to
97	97	active duty and the cost of training a replacement for the
98	98	individual;
99	99	(2) apportioning the taxable entity's margin to this
100	100	state as provided by Section 171.106 to determine the taxable
101	101	entity's apportioned margin; and
102	102	(3) subtracting from the amount computed under
103	103	Subdivision (2) any other allowable deductions to determine the
104	104	taxable entity's taxable margin.
105	105	SECTION 7. Effective January 1, 2011, Section 171.101(a),
106	106	Tax Code, is amended to read as follows:
107	107	(a) The taxable margin of a taxable entity is computed by:
108	108	(1) determining the taxable entity's margin, which is
109	109	the lesser of:
110	110	(A) the following percentage [70 percent] of the
111	111	taxable entity's total revenue from its entire business, as
112	112	determined under Section 171.1011:
113	113	(i) 25 percent, if the amount of the taxable
114	114	entity's total revenue from its entire business is less than or
115	115	equal to $10 million; and
116	116	(ii) 50 percent, if the amount of the
117	117	taxable entity's total revenue from its entire business is more
118	118	than $10 million; or
119	119	(B) an amount computed by:
120	120	(i) determining the taxable entity's total
121	121	revenue from its entire business, under Section 171.1011;
122	122	(ii) subtracting, at the election of the
123	123	taxable entity, either:
124	124	(a) cost of goods sold, as determined
125	125	under Section 171.1012; or
126	126	(b) compensation, as determined under
127	127	Section 171.1013; and
128	128	(iii) subtracting, in addition to any
129	129	subtractions made under Subparagraph (ii)(a) or (b), compensation,
130	130	as determined under Section 171.1013, paid to an individual during
131	131	the period the individual is serving on active duty as a member of
132	132	the armed forces of the United States if the individual is a
133	133	resident of this state at the time the individual is ordered to
134	134	active duty and the cost of training a replacement for the
135	135	individual;
136	136	(2) apportioning the taxable entity's margin to this
137	137	state as provided by Section 171.106 to determine the taxable
138	138	entity's apportioned margin; and
139	139	(3) subtracting from the amount computed under
140	140	Subdivision (2) any other allowable deductions to determine the
141	141	taxable entity's taxable margin.
142	142	SECTION 8. Sections 171.0021 and 171.1016, Tax Code, are
143	143	repealed.
144	144	SECTION 9. The change in law made by this Act does not
145	145	affect tax liability accruing before the effective date of this
146	146	Act. That liability continues in effect as if this Act had not been
147	147	enacted, and the former law is continued in effect for the
148	148	collection of taxes due and for civil and criminal enforcement of
149	149	the liability for those taxes.
150	150	SECTION 10. This Act applies only to a report originally due
151	151	on or after January 1, 2010.
152	152	SECTION 11. (a) Sections 151.051(b) and 151.801(a) and
153	153	(c), Tax Code, as amended by this Act, and Section 151.802, Tax
154	154	Code, as added by this Act, take effect October 1, 2009.
155	155	(b) Except as provided by Section 7 of this Act and
156	156	Subsection (a) of this section, this Act takes effect January 1,
157	157	2010.