LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 19, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4265 by Howard, Charlie (Relating to the definition of controlling interest for purposes of the franchise tax.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Chapter 171 of the Tax Code, regarding the franchise tax. The bill would amend the definition of "controlling interest" for certain types of entities. Under current law, there is a single definition for controlling interest applicable to a partnership, an association, or any other entity other than a limited liability company. This bill would add separate definitions of controlling interest for an association, a trust, and for any other entity. The bill would take effect on January 1, 2010, and apply to a report due on or after that date. The expanded definitions of "controlling interest" continue to require that more than 50 percent be owned directly or indirectly for each type of entity. The bill clarifies the type of interest that must be owned for the various entity types. The bill would have no fiscal impact. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD, SM
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 19, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4265 by Howard, Charlie (Relating to the definition of controlling interest for purposes of the franchise tax.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB4265 by Howard, Charlie (Relating to the definition of controlling interest for purposes of the franchise tax.), As Introduced
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB4265 by Howard, Charlie (Relating to the definition of controlling interest for purposes of the franchise tax.), As Introduced
HB4265 by Howard, Charlie (Relating to the definition of controlling interest for purposes of the franchise tax.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 171 of the Tax Code, regarding the franchise tax. The bill would amend the definition of "controlling interest" for certain types of entities. Under current law, there is a single definition for controlling interest applicable to a partnership, an association, or any other entity other than a limited liability company. This bill would add separate definitions of controlling interest for an association, a trust, and for any other entity. The bill would take effect on January 1, 2010, and apply to a report due on or after that date. The expanded definitions of "controlling interest" continue to require that more than 50 percent be owned directly or indirectly for each type of entity. The bill clarifies the type of interest that must be owned for the various entity types. The bill would have no fiscal impact.
The bill would amend Chapter 171 of the Tax Code, regarding the franchise tax.
The bill would amend the definition of "controlling interest" for certain types of entities. Under current law, there is a single definition for controlling interest applicable to a partnership, an association, or any other entity other than a limited liability company. This bill would add separate definitions of controlling interest for an association, a trust, and for any other entity.
The bill would take effect on January 1, 2010, and apply to a report due on or after that date.
The expanded definitions of "controlling interest" continue to require that more than 50 percent be owned directly or indirectly for each type of entity. The bill clarifies the type of interest that must be owned for the various entity types. The bill would have no fiscal impact.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, SM
JOB, MN, SD, SM