81R6178 KLA-D
By: Harper-Brown H.B. No. 2945
A BILL TO BE ENTITLED
AN ACT
relating to the total revenue exemption from the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.002, Tax Code, is amended by adding
Subsection (e) to read as follows:
(e) Notwithstanding Subsection (d)(2), a taxable entity is
not required to pay any tax and is not considered to owe any tax for
a period if the amount of the taxable entity's total revenue from
its entire business is less than $1 million for the 12-month period
on which margin is based. This subsection expires January 1, 2011.
SECTION 2. Section 171.0021, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) If both the discounts provided by this section and the
exemption from the tax imposed under this chapter provided by
Section 171.002(e) apply to a taxable entity for a period, the
exemption provided by Section 171.002(e) prevails. This subsection
expires January 1, 2011.
SECTION 3. This Act applies only to a report originally due
on or after January 1, 2010, and before January 1, 2011.
SECTION 4. This Act takes effect January 1, 2010.