81R19532 JE-D
By: Oliveira, Paxton, Hopson, Callegari, H.B. No. 4765
Creighton, et al.
A BILL TO BE ENTITLED
AN ACT
relating to the total revenue exemption for the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. TEMPORARY EXEMPTION INCREASE. 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.
SECTION 2. SUNSET OF TEMPORARY INCREASE. Effective January
1, 2012, 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 $300,000 or the
amount determined under Section 171.006 per 12-month period on
which margin is based.
SECTION 3. TRANSITION. (a) Section 171.002(d), Tax Code,
as amended by Section 1 of this Act, applies only to a report
originally due on or after the effective date of this Act.
(b) Section 171.002(d), Tax Code, as amended by Section 2 of
this Act, applies only to a report originally due on or after
January 1, 2012.
SECTION 4. EFFECTIVE DATE. This Act takes effect January 1,
2010.