By: Hilderbran, Villalba, Workman, Lozano, H.B. No. 213
Capriglione, et al.
A BILL TO BE ENTITLED
AN ACT
relating to the $1 million total revenue exemption for the
franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1(c), Chapter 286 (H.B. 4765), Acts of
the 81st Legislature, Regular Session, 2009, as amended by Section
37.01, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
Session, 2011, is repealed.
SECTION 2. Section 2, Chapter 286 (H.B. 4765), Acts of the
81st Legislature, Regular Session, 2009, as amended by Section
37.02, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
Session, 2011, and which amended former Subsection (d), Section
171.002, Tax Code, is repealed.
SECTION 3. Section 3, Chapter 286 (H.B. 4765), Acts of the
81st Legislature, Regular Session, 2009, as amended by Section
37.03, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
Session, 2011, and which amended former Subsection (a), Section
171.0021, Tax Code, is repealed.
SECTION 4. (a) Effective January 1, 2016, Section
171.002(d), Tax Code, as amended by Section 1(a), Chapter 286 (H.B.
4765), Acts of the 81st Legislature, Regular Session, 2009, 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 $5 [$1] million or
the amount determined under Section 171.006 per 12-month period on
which margin is based.
(b) Effective January 1, 2018, Section 171.002(d), Tax
Code, as amended by Section 1(a), Chapter 286 (H.B. 4765), Acts of
the 81st Legislature, Regular Session, 2009, 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 $10 [$1] million
or the amount determined under Section 171.006 per 12-month period
on which margin is based.
(c) Effective January 1, 2020, Section 171.002(d), Tax
Code, as amended by Section 1(a), Chapter 286 (H.B. 4765), Acts of
the 81st Legislature, Regular Session, 2009, 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 $15 [$1] million
or the amount determined under Section 171.006 per 12-month period
on which margin is based.
(d) Effective January 1, 2022, Section 171.002(d), Tax
Code, as amended by Section 1(a), Chapter 286 (H.B. 4765), Acts of
the 81st Legislature, Regular Session, 2009, 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 $20 [$1] million
or the amount determined under Section 171.006 per 12-month period
on which margin is based.
(e) This section applies only to a report originally due on
or after January 1, 2016.
SECTION 5. Section 171.006(b), Tax Code, is amended to read
as follows:
(b) Beginning in 2010, on January 1 of each even-numbered
year, the amounts prescribed by Sections 171.002(d)(2)[,
171.0021,] and 171.1013(c) are increased or decreased by an amount
equal to the amount prescribed by those sections on December 31 of
the preceding year multiplied by the percentage increase or
decrease during the preceding state fiscal biennium in the consumer
price index and rounded to the nearest $10,000.
SECTION 6. Sections 171.0021 and 171.1016(d), Tax Code, are
repealed.
SECTION 7. Except as otherwise provided by this Act, this
Act takes effect immediately if it receives a vote of two-thirds of
all the members elected to each house, as provided by Section 39,
Article III, Texas Constitution. If this Act does not receive the
vote necessary for immediate effect, this Act takes effect
September 1, 2013.