81R22525 KLA-D
By: Oliveira H.B. No. 4766
A BILL TO BE ENTITLED
AN ACT
relating to the computation of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TEMPORARY EXEMPTION INCREASE AND DISCOUNT MODIFICATIONS
FOR SMALL BUSINESSES
SECTION 1.01. 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 $750,000
[$300,000] or the amount determined under Section 171.006 per
12-month period on which margin is based.
SECTION 1.02. Section 171.0021(a), Tax Code, is amended to
read as follows:
(a) A taxable entity is entitled to a discount of the tax
imposed under this chapter that the taxable entity is required to
pay after determining its taxable margin under Section 171.101,
applying the appropriate rate of the tax under Section 171.002(a)
or (b), and subtracting any other allowable credits, as follows:
(1) for a taxable entity for which the total revenue
from its entire business is greater than $750,000 [$300,000] but
less than $900,000 [$400,000], the taxable entity is entitled to a
discount of 50 [80] percent; and
(2) for a taxable entity for which the total revenue
from its entire business is equal to or greater than $900,000
[$400,000] but not more than $1 million [less than $500,000], the
taxable entity is entitled to a discount of 33 [60] percent[;
[(3) for a taxable entity for which the total revenue
from its entire business is equal to or greater than $500,000 but
less than $700,000, the taxable entity is entitled to a discount of
40 percent; and
[(4) for a taxable entity for which the total revenue
from its entire business is equal to or greater than $700,000 but
less than $900,000, the taxable entity is entitled to a discount of
20 percent].
SECTION 1.03. The changes in law made by this article apply
only to a report originally due on or after the effective date of
this Act.
ARTICLE 2. SUNSET OF TEMPORARY INCREASE AND OTHER MODIFICATIONS
SECTION 2.01. 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 2.02. Effective January 1, 2012, Section
171.0021(a), Tax Code, is amended to read as follows:
(a) A taxable entity is entitled to a discount of the tax
imposed under this chapter that the taxable entity is required to
pay after determining its taxable margin under Section 171.101,
applying the appropriate rate of the tax under Section 171.002(a)
or (b), and subtracting any other allowable credits, as follows:
(1) for a taxable entity for which the total revenue
from its entire business is greater than $300,000 but less than
$400,000, the taxable entity is entitled to a discount of 80
percent;
(2) for a taxable entity for which the total revenue
from its entire business is equal to or greater than $400,000 but
less than $500,000, the taxable entity is entitled to a discount of
60 percent;
(3) for a taxable entity for which the total revenue
from its entire business is equal to or greater than $500,000 but
less than $700,000, the taxable entity is entitled to a discount of
40 percent; and
(4) for a taxable entity for which the total revenue
from its entire business is equal to or greater than $700,000 but
less than $900,000, the taxable entity is entitled to a discount of
20 percent.
SECTION 2.03. The changes in law made by this article apply
only to a report originally due on or after January 1, 2012.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. Except as otherwise provided by this Act,
this Act takes effect January 1, 2010.