| 1 | 1 | | 81R4893 JE-D |
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| 2 | 2 | | By: Watson S.B. No. 740 |
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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 171.0021(a), Tax Code, is amended to |
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| 20 | 20 | | read as follows: |
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| 21 | 21 | | (a) A taxable entity is entitled to a discount of the tax |
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| 22 | 22 | | imposed under this chapter that the taxable entity is required to |
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| 23 | 23 | | pay after determining its taxable margin under Section 171.101, |
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| 24 | 24 | | applying the appropriate rate of the tax under Section 171.002(a) |
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| 25 | 25 | | or (b), and subtracting any other allowable credits, as follows: |
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| 26 | 26 | | (1) for a taxable entity for which the total revenue |
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| 27 | 27 | | from its entire business is greater than $1 million [$300,000] but |
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| 28 | 28 | | less than $1.1 million [$400,000], the taxable entity is entitled |
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| 29 | 29 | | to a discount of 80 percent; |
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| 30 | 30 | | (2) for a taxable entity for which the total revenue |
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| 31 | 31 | | from its entire business is equal to or greater than $1.1 million |
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| 32 | 32 | | [$400,000] but less than $1.2 million [$500,000], the taxable |
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| 33 | 33 | | entity is entitled to a discount of 60 percent; |
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| 34 | 34 | | (3) for a taxable entity for which the total revenue |
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| 35 | 35 | | from its entire business is equal to or greater than $1.2 million |
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| 36 | 36 | | [$500,000] but less than $1.35 million [$700,000], the taxable |
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| 37 | 37 | | entity is entitled to a discount of 40 percent; and |
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| 38 | 38 | | (4) for a taxable entity for which the total revenue |
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| 39 | 39 | | from its entire business is equal to or greater than $1.35 million |
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| 40 | 40 | | [$700,000] but less than $1.5 million [$900,000], the taxable |
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| 41 | 41 | | entity is entitled to a discount of 20 percent. |
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| 42 | 42 | | SECTION 3. This Act applies only to a report originally due |
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| 43 | 43 | | on or after the effective date of this Act. |
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| 44 | 44 | | SECTION 4. This Act takes effect January 1, 2010. |
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