Texas 2015 - 84th Regular

Texas House Bill HB1152 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R197 TJB-D
2	2	By: Turner of Collin H.B. No. 1152
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the phaseout and repeal of the franchise tax; lowering
8	8	the rates of the tax.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. (a) Effective January 1, 2016, Sections
11	11	171.002(a) and (b), Tax Code, are amended to read as follows:
12	12	(a) Subject to Sections 171.003 and 171.1016 and except as
13	13	provided by Subsection (b), the rate of the franchise tax is 0.75
14	14	[one] percent of taxable margin.
15	15	(b) Subject to Sections 171.003 and 171.1016, the rate of
16	16	the franchise tax is 0.38 [0.5] percent of taxable margin for those
17	17	taxable entities primarily engaged in retail or wholesale trade.
18	18	(b) This section applies only to a report originally due on
19	19	or after January 1, 2016.
20	20	SECTION 2. (a) Effective January 1, 2017, Sections
21	21	171.002(a) and (b), Tax Code, are amended to read as follows:
22	22	(a) Subject to Sections 171.003 and 171.1016 and except as
23	23	provided by Subsection (b), the rate of the franchise tax is 0.50
24	24	[one] percent of taxable margin.
25	25	(b) Subject to Sections 171.003 and 171.1016, the rate of
26	26	the franchise tax is 0.25 [0.5] percent of taxable margin for those
27	27	taxable entities primarily engaged in retail or wholesale trade.
28	28	(b) This section applies only to a report originally due on
29	29	or after January 1, 2017.
30	30	SECTION 3. (a) Effective January 1, 2018, Sections
31	31	171.002(a) and (b), Tax Code, are amended to read as follows:
32	32	(a) Subject to Sections 171.003 and 171.1016 and except as
33	33	provided by Subsection (b), the rate of the franchise tax is 0.25
34	34	[one] percent of taxable margin.
35	35	(b) Subject to Sections 171.003 and 171.1016, the rate of
36	36	the franchise tax is 0.13 [0.5] percent of taxable margin for those
37	37	taxable entities primarily engaged in retail or wholesale trade.
38	38	(b) This section applies only to a report originally due on
39	39	or after January 1, 2018.
40	40	SECTION 4. (a) Effective January 1, 2016, Section
41	41	171.1016(b), Tax Code, is amended to read as follows:
42	42	(b) The amount of the tax for which a taxable entity that
43	43	elects to pay the tax as provided by this section is liable is
44	44	computed by:
45	45	(1) determining the taxable entity's total revenue
46	46	from its entire business, as determined under Section 171.1011;
47	47	(2) apportioning the amount computed under
48	48	Subdivision (1) to this state, as provided by Section 171.106, to
49	49	determine the taxable entity's apportioned total revenue; and
50	50	(3) multiplying the amount computed under Subdivision
51	51	(2) by the rate of 0.43 [0.575] percent.
52	52	(b) This section applies only to a report originally due on
53	53	or after January 1, 2016.
54	54	SECTION 5. (a) Effective January 1, 2017, Section
55	55	171.1016(b), Tax Code, is amended to read as follows:
56	56	(b) The amount of the tax for which a taxable entity that
57	57	elects to pay the tax as provided by this section is liable is
58	58	computed by:
59	59	(1) determining the taxable entity's total revenue
60	60	from its entire business, as determined under Section 171.1011;
61	61	(2) apportioning the amount computed under
62	62	Subdivision (1) to this state, as provided by Section 171.106, to
63	63	determine the taxable entity's apportioned total revenue; and
64	64	(3) multiplying the amount computed under Subdivision
65	65	(2) by the rate of 0.29 [0.575] percent.
66	66	(b) This section applies only to a report originally due on
67	67	or after January 1, 2017.
68	68	SECTION 6. (a) Effective January 1, 2018, Section
69	69	171.1016(b), Tax Code, is amended to read as follows:
70	70	(b) The amount of the tax for which a taxable entity that
71	71	elects to pay the tax as provided by this section is liable is
72	72	computed by:
73	73	(1) determining the taxable entity's total revenue
74	74	from its entire business, as determined under Section 171.1011;
75	75	(2) apportioning the amount computed under
76	76	Subdivision (1) to this state, as provided by Section 171.106, to
77	77	determine the taxable entity's apportioned total revenue; and
78	78	(3) multiplying the amount computed under Subdivision
79	79	(2) by the rate of 0.14 [0.575] percent.
80	80	(b) This section applies only to a report originally due on
81	81	or after January 1, 2018.
82	82	SECTION 7. Section 171.362(f), Tax Code, is amended to read
83	83	as follows:
84	84	(f) In addition to any other penalty authorized by this
85	85	section, a taxable entity that owes a tax for a reporting period and
86	86	[who] fails to file a report for the reporting period as required by
87	87	this chapter shall pay a penalty of $50. The penalty provided by
88	88	this subsection is assessed without regard to whether the taxable
89	89	entity subsequently files the report [or whether any taxes were due
90	90	from the taxable entity for the reporting period under the required
91	91	report].
92	92	SECTION 8. (a) Chapter 171, Tax Code, is repealed.
93	93	(b) A taxable entity that is subject to the franchise tax
94	94	imposed under Chapter 171, Tax Code, on December 31, 2018, shall
95	95	file a final franchise tax return and pay a transitional tax as
96	96	required by this subsection on or before May 15, 2019. The
97	97	transitional tax is equal to the tax the taxable entity would have
98	98	paid in 2019 under Chapter 171, Tax Code, if Chapter 171, Tax Code,
99	99	had not been repealed. The provisions of Chapter 171, Tax Code,
100	100	relating to the computation and payment of the franchise tax remain
101	101	in effect after the repeal of Chapter 171, Tax Code, by this section
102	102	for the purposes of computing and paying the transitional tax
103	103	required by this subsection.
104	104	(c) Chapter 171, Tax Code, and Subtitle B, Title 2, Tax
105	105	Code, continue to apply to audits, deficiencies, redeterminations,
106	106	and refunds of any tax due or collected under Chapter 171, including
107	107	the tax due as provided by Subsection (b) of this section, until
108	108	barred by limitations.
109	109	(d) The repeal of Chapter 171, Tax Code, does not affect:
110	110	(1) the status of a taxable entity that has had its
111	111	corporate privileges, certificate of authority, certificate of
112	112	organization, certificate of limited partnership, corporate
113	113	charter, or registration revoked, suit filed against it, or a
114	114	receiver appointed under Subchapter F, G, or H of that chapter;
115	115	(2) the ability of the comptroller, secretary of
116	116	state, or attorney general to take action against a taxable entity
117	117	under Subchapter F, G, or H of that chapter for actions that took
118	118	place before the repeal; or
119	119	(3) the right of a taxable entity to contest a
120	120	forfeiture, revocation, lawsuit, or appointment of a receiver under
121	121	Subchapter F, G, or H of that chapter.
122	122	(e) This section takes effect January 1, 2019.
123	123	SECTION 9. Except as otherwise provided by this Act, this
124	124	Act applies only to a report originally due on or after the
125	125	effective date of this Act.
126	126	SECTION 10. Except as otherwise provided by this Act, this
127	127	Act takes effect January 1, 2016.