| 1 | 1 | | 81R10503 BEF-D |
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| 2 | 2 | | By: Patrick, Dan S.B. No. 19 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the computation of the franchise tax. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 171.002(d), Tax Code, is amended to read |
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| 10 | 10 | | as follows: |
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| 11 | 11 | | (d) A taxable entity is not required to pay any tax and is |
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| 12 | 12 | | not considered to owe any tax for a period if: |
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| 13 | 13 | | (1) the amount of tax computed for the taxable entity |
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| 14 | 14 | | is less than $1,000; or |
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| 15 | 15 | | (2) the amount of the taxable entity's total revenue |
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| 16 | 16 | | from its entire business is less than or equal to $1 million |
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| 17 | 17 | | [$300,000] or the amount determined under Section 171.006 per |
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| 18 | 18 | | 12-month period on which margin is based. |
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| 19 | 19 | | SECTION 2. Section 171.006(b), Tax Code, is amended to read |
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| 20 | 20 | | as follows: |
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| 21 | 21 | | (b) On [Beginning in 2010, on] January 1 of each |
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| 22 | 22 | | even-numbered year, the amounts prescribed by Sections |
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| 23 | 23 | | 171.002(d)(2)[, 171.0021,] and 171.1013(c) are increased or |
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| 24 | 24 | | decreased by an amount equal to the amount prescribed by those |
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| 25 | 25 | | sections on December 31 of the preceding year multiplied by the |
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| 26 | 26 | | percentage increase or decrease during the preceding state fiscal |
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| 27 | 27 | | biennium in the consumer price index and rounded to the nearest |
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| 28 | 28 | | $10,000. |
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| 29 | 29 | | SECTION 3. Section 171.1016(b), Tax Code, is amended to |
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| 30 | 30 | | read as follows: |
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| 31 | 31 | | (b) The amount of the tax for which a taxable entity that |
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| 32 | 32 | | elects to pay the tax as provided by this section is liable is |
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| 33 | 33 | | computed by: |
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| 34 | 34 | | (1) determining the taxable entity's total revenue |
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| 35 | 35 | | from its entire business, as determined under Section 171.1011; |
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| 36 | 36 | | (2) apportioning the amount computed under |
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| 37 | 37 | | Subdivision (1) to this state, as provided by Section 171.106, to |
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| 38 | 38 | | determine the taxable entity's apportioned total revenue; and |
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| 39 | 39 | | (3) multiplying the amount computed under Subdivision |
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| 40 | 40 | | (2) by the rate of 0.4 [0.575] percent. |
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| 41 | 41 | | SECTION 4. Sections 171.0021 and 171.1016(d), Tax Code, are |
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| 42 | 42 | | repealed. |
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| 43 | 43 | | SECTION 5. This Act applies only to a report originally due |
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| 44 | 44 | | on or after the effective date of this Act. |
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| 45 | 45 | | SECTION 6. This Act takes effect January 1, 2010. |
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