By: Hilderbran, et al. (Senate Sponsor - Hegar) H.B. No. 500
(In the Senate - Received from the House May 9, 2013;
May 9, 2013, read first time and referred to Committee on Finance;
May 20, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 13, Nays 0, 1 present not
voting; May 20, 2013, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 500 By: Hegar
A BILL TO BE ENTITLED
AN ACT
relating to the $1 million total revenue exemption for the
franchise tax; temporarily decreasing the rates of the franchise
tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended
by adding Section 171.0022 to read as follows:
Sec. 171.0022. TEMPORARY PERMISSIVE ALTERNATE RATES. (a)
Notwithstanding Section 171.002(a) and subject to Section 171.1016
and Subsection (b) of this section, a taxable entity may elect to
pay the tax imposed under this chapter at a rate of 0.95 percent of
taxable margin.
(b) Notwithstanding Section 171.002(b) and subject to
Section 171.1016, a taxable entity primarily engaged in retail or
wholesale trade as defined by Sections 171.002(c) and (c-1) may
elect to pay the tax imposed under this chapter at a rate of 0.475
percent of taxable margin.
(c) This section applies only to a report originally due on
or after January 1, 2014, and before January 1, 2016.
(d) This section expires December 31, 2015.
SECTION 2. (a) 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Called Session, 2011, is repealed.
(b) This section takes effect September 1, 2013.
SECTION 3. (a) 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171.002, Tax Code, is repealed.
(b) This section takes effect September 1, 2013.
SECTION 4. (a) 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171.0021, Tax Code, is repealed.
(b) This section takes effect September 1, 2013.
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. This Act applies only to a report originally due
on or after January 1, 2014.
SECTION 8. Except as otherwise provided by this Act, this
Act takes effect January 1, 2014.
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