81R1097 KLA-D
By: Zerwas H.B. No. 277
A BILL TO BE ENTITLED
AN ACT
relating to the franchise tax and alternative revenue sources and
spending priorities for this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Revenue Reform Act
of 2009.
SECTION 2. (a) Effective January 1, 2010, Section
171.002(d), Tax Code, is amended to read as follows:
(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 $600,000
[$300,000] or the amount determined under Section 171.006 per
12-month period on which margin is based.
(b) This section applies only to a report originally due on
or after January 1, 2010.
SECTION 3. (a) Effective January 1, 2011, Section
171.002(d), Tax Code, is amended to read as follows:
(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.
(b) This section applies only to a report originally due on
or after January 1, 2011.
SECTION 4. (a) The comptroller of public accounts shall
conduct a comprehensive study that:
(1) analyzes and compares:
(A) the feasibility of implementing alternative
methods to the franchise tax imposed under Chapter 171, Tax Code, by
which revenue may be generated to address the needs of this state;
and
(B) the effectiveness of each of those methods in
generating sufficient revenue to address those needs; and
(2) prioritizes the revenue needs of this state and
identifies potential reductions in expenditures by this state.
(b) The comptroller of public accounts shall consider the
funding priorities and requirements established by the Texas
Constitution in prioritizing the revenue needs of this state as
required by Subsection (a)(2) of this section.
(c) The study conducted under Subsection (a) of this section
must include an analysis and comparison of the following
revenue-generating methods:
(1) imposing a transaction tax in this state;
(2) imposing a value-added tax in this state;
(3) eliminating exemptions from the sales and use tax
imposed under Chapter 151, Tax Code;
(4) increasing the rate of the sales and use tax
imposed under Chapter 151, Tax Code;
(5) imposing the sales and use tax under Chapter 151,
Tax Code, according to rate brackets, the applications of which
vary according to the sales price of a taxable item;
(6) imposing a business sales tax in this state in
addition to the sales and use tax imposed under Chapter 151, Tax
Code; and
(7) any other method the comptroller considers
potentially effective in addressing the revenue needs of this
state.
(d) Not later than November 1, 2010, the comptroller of
public accounts shall submit a report to the legislature regarding
the results of the study conducted under this section. The report
must:
(1) identify one or more revenue-generating methods
the comptroller determines would be most effective in meeting the
revenue needs of this state;
(2) include a description of any legislation necessary
to implement the methods identified under Subdivision (1) of this
subsection; and
(3) propose specific reductions in expenditures by
this state and any legislation necessary to implement those
reductions.
SECTION 5. Effective January 1, 2014, Chapter 171, Tax
Code, is repealed.
SECTION 6. Except as otherwise provided by this Act, this
Act takes effect September 1, 2009.