Texas 2015 - 84th Regular

Texas House Bill HB193 Compare Versions

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

Old	New	Differences
1	1	84R437 TJB-D
2	2	By: Murphy H.B. No. 193
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. (a) Chapter 171, Tax Code, is repealed.
83	83	(b) A taxable entity that is subject to the franchise tax
84	84	imposed under Chapter 171, Tax Code, on December 31, 2018, shall
85	85	file a final franchise tax return and pay a transitional tax as
86	86	required by this subsection on or before May 15, 2019. The
87	87	transitional tax is equal to the tax the taxable entity would have
88	88	paid in 2019 under Chapter 171, Tax Code, if Chapter 171, Tax Code,
89	89	had not been repealed. The provisions of Chapter 171, Tax Code,
90	90	relating to the computation and payment of the franchise tax remain
91	91	in effect after the repeal of Chapter 171, Tax Code, by this section
92	92	for the purposes of computing and paying the transitional tax
93	93	required by this subsection.
94	94	(c) Chapter 171, Tax Code, and Subtitle B, Title 2, Tax
95	95	Code, continue to apply to audits, deficiencies, redeterminations,
96	96	and refunds of any tax due or collected under Chapter 171, including
97	97	the tax due as provided by Subsection (b) of this section, until
98	98	barred by limitations.
99	99	(d) The repeal of Chapter 171, Tax Code, does not affect:
100	100	(1) the status of a taxable entity that has had its
101	101	corporate privileges, certificate of authority, certificate of
102	102	organization, certificate of limited partnership, corporate
103	103	charter, or registration revoked, suit filed against it, or a
104	104	receiver appointed under Subchapter F, G, or H of that chapter;
105	105	(2) the ability of the comptroller, secretary of
106	106	state, or attorney general to take action against a taxable entity
107	107	under Subchapter F, G, or H of that chapter for actions that took
108	108	place before the repeal; or
109	109	(3) the right of a taxable entity to contest a
110	110	forfeiture, revocation, lawsuit, or appointment of a receiver under
111	111	Subchapter F, G, or H of that chapter.
112	112	(e) This section takes effect January 1, 2019.
113	113	SECTION 8. Except as otherwise provided by this Act, this
114	114	Act applies only to a report originally due on or after the
115	115	effective date of this Act.
116	116	SECTION 9. Except as otherwise provided by this Act, this
117	117	Act takes effect January 1, 2016.