Texas 2013 - 83rd Regular

Texas House Bill HB509 Compare Versions

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1	1	83R27175 TJB-D
2	2	By: Murphy, Harper-Brown, Harless, H.B. No. 509
3	3	Hilderbran, et al.
4	4	Substitute the following for H.B. No. 509:
5	5	By: Hilderbran C.S.H.B. No. 509
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the phaseout and repeal of the franchise tax; lowering
11	11	the rates of the taxes.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. (a) Effective January 1, 2014, Sections
14	14	171.002(a) and (b), Tax Code, are amended to read as follows:
15	15	(a) Subject to Sections 171.003 and 171.1016 and except as
16	16	provided by Subsection (b), the rate of the franchise tax is 0.75
17	17	[one] percent of taxable margin.
18	18	(b) Subject to Sections 171.003 and 171.1016, the rate of
19	19	the franchise tax is 0.38 [0.5] percent of taxable margin for those
20	20	taxable entities primarily engaged in retail or wholesale trade.
21	21	(b) This section applies only to a report originally due on
22	22	or after January 1, 2014.
23	23	SECTION 2. (a) Effective January 1, 2015, Sections
24	24	171.002(a) and (b), Tax Code, are amended to read as follows:
25	25	(a) Subject to Sections 171.003 and 171.1016 and except as
26	26	provided by Subsection (b), the rate of the franchise tax is 0.50
27	27	[one] percent of taxable margin.
28	28	(b) Subject to Sections 171.003 and 171.1016, the rate of
29	29	the franchise tax is 0.25 [0.5] percent of taxable margin for those
30	30	taxable entities primarily engaged in retail or wholesale trade.
31	31	(b) This section applies only to a report originally due on
32	32	or after January 1, 2015.
33	33	SECTION 3. (a) Effective January 1, 2016, Sections
34	34	171.002(a) and (b), Tax Code, are amended to read as follows:
35	35	(a) Subject to Sections 171.003 and 171.1016 and except as
36	36	provided by Subsection (b), the rate of the franchise tax is 0.25
37	37	[one] percent of taxable margin.
38	38	(b) Subject to Sections 171.003 and 171.1016, the rate of
39	39	the franchise tax is 0.13 [0.5] percent of taxable margin for those
40	40	taxable entities primarily engaged in retail or wholesale trade.
41	41	(b) This section applies only to a report originally due on
42	42	or after January 1, 2016.
43	43	SECTION 4. (a) Effective January 1, 2014, Section
44	44	171.1016(b), Tax Code, is amended to read as follows:
45	45	(b) The amount of the tax for which a taxable entity that
46	46	elects to pay the tax as provided by this section is liable is
47	47	computed by:
48	48	(1) determining the taxable entity's total revenue
49	49	from its entire business, as determined under Section 171.1011;
50	50	(2) apportioning the amount computed under
51	51	Subdivision (1) to this state, as provided by Section 171.106, to
52	52	determine the taxable entity's apportioned total revenue; and
53	53	(3) multiplying the amount computed under Subdivision
54	54	(2) by the rate of 0.43 [0.575] percent.
55	55	(b) This section applies only to a report originally due on
56	56	or after January 1, 2014.
57	57	SECTION 5. (a) Effective January 1, 2015, Section
58	58	171.1016(b), Tax Code, is amended to read as follows:
59	59	(b) The amount of the tax for which a taxable entity that
60	60	elects to pay the tax as provided by this section is liable is
61	61	computed by:
62	62	(1) determining the taxable entity's total revenue
63	63	from its entire business, as determined under Section 171.1011;
64	64	(2) apportioning the amount computed under
65	65	Subdivision (1) to this state, as provided by Section 171.106, to
66	66	determine the taxable entity's apportioned total revenue; and
67	67	(3) multiplying the amount computed under Subdivision
68	68	(2) by the rate of 0.29 [0.575] percent.
69	69	(b) This section applies only to a report originally due on
70	70	or after January 1, 2015.
71	71	SECTION 6. (a) Effective January 1, 2016, Section
72	72	171.1016(b), Tax Code, is amended to read as follows:
73	73	(b) The amount of the tax for which a taxable entity that
74	74	elects to pay the tax as provided by this section is liable is
75	75	computed by:
76	76	(1) determining the taxable entity's total revenue
77	77	from its entire business, as determined under Section 171.1011;
78	78	(2) apportioning the amount computed under
79	79	Subdivision (1) to this state, as provided by Section 171.106, to
80	80	determine the taxable entity's apportioned total revenue; and
81	81	(3) multiplying the amount computed under Subdivision
82	82	(2) by the rate of 0.14 [0.575] percent.
83	83	(b) This section applies only to a report originally due on
84	84	or after January 1, 2016.
85	85	SECTION 7. Section 171.006(b), Tax Code, is amended to read
86	86	as follows:
87	87	(b) Beginning in 2010, on January 1 of each even-numbered
88	88	year, the amounts prescribed by Sections 171.002(d)(2)[,
89	89	171.0021,] and 171.1013(c) are increased or decreased by an amount
90	90	equal to the amount prescribed by those sections on December 31 of
91	91	the preceding year multiplied by the percentage increase or
92	92	decrease during the preceding state fiscal biennium in the consumer
93	93	price index and rounded to the nearest $10,000.
94	94	SECTION 8. Section 1(c), Chapter 286 (H.B. 4765), Acts of
95	95	the 81st Legislature, Regular Session, 2009, as amended by Section
96	96	37.01, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
97	97	Session, 2011, is repealed.
98	98	SECTION 9. Section 2, Chapter 286 (H.B. 4765), Acts of the
99	99	81st Legislature, Regular Session, 2009, as amended by Section
100	100	37.02, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
101	101	Session, 2011, and which amended former Subsection (d), Section
102	102	171.002, Tax Code, is repealed.
103	103	SECTION 10. Section 3, Chapter 286 (H.B. 4765), Acts of the
104	104	81st Legislature, Regular Session, 2009, as amended by Section
105	105	37.03, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
106	106	Session, 2011, and which amended former Subsection (a), Section
107	107	171.0021, Tax Code, is repealed.
108	108	SECTION 11. Sections 171.0021 and 171.1016(d), Tax Code,
109	109	are repealed.
110	110	SECTION 12. (a) Chapter 171, Tax Code, is repealed.
111	111	(b) A taxable entity that is subject to the franchise tax
112	112	imposed under Chapter 171, Tax Code, on December 31, 2016, shall
113	113	file a final franchise tax return and pay a transitional tax as
114	114	required by this subsection on or before May 15, 2017. The
115	115	transitional tax is equal to the tax the taxable entity would have
116	116	paid in 2017 under Chapter 171, Tax Code, if Chapter 171, Tax Code,
117	117	had not been repealed. The provisions of Chapter 171, Tax Code,
118	118	relating to the computation and payment of the franchise tax remain
119	119	in effect after the repeal of Chapter 171, Tax Code, by this section
120	120	for the purposes of computing and paying the transitional tax
121	121	required by this subsection.
122	122	(c) Chapter 171, Tax Code, and Subtitle B, Title 2, Tax
123	123	Code, continue to apply to audits, deficiencies, redeterminations,
124	124	and refunds of any tax due or collected under Chapter 171, including
125	125	the tax due as provided by Subsection (b) of this section, until
126	126	barred by limitations.
127	127	(d) The repeal of Chapter 171, Tax Code, does not affect:
128	128	(1) the status of a taxable entity that has had its
129	129	corporate privileges, certificate of authority, certificate of
130	130	organization, certificate of limited partnership, corporate
131	131	charter, or registration revoked, suit filed against it, or a
132	132	receiver appointed under Subchapter F, G, or H of that chapter;
133	133	(2) the ability of the comptroller, secretary of
134	134	state, or attorney general to take action against a taxable entity
135	135	under Subchapter F, G, or H of that chapter for actions that took
136	136	place before the repeal; or
137	137	(3) the right of a taxable entity to contest a
138	138	forfeiture, revocation, lawsuit, or appointment of a receiver under
139	139	Subchapter F, G, or H of that chapter.
140	140	(e) This section takes effect January 1, 2017.
141	141	SECTION 13. Except as otherwise provided by this Act, this
142	142	Act applies only to a report originally due on or after the
143	143	effective date of this Act.
144	144	SECTION 14. Except as otherwise provided by this Act, this
145	145	Act takes effect January 1, 2014.