Texas 2015 - 84th Regular

Texas House Bill HB1962 Compare Versions

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

Old	New	Differences
1	1	84R3163 T
2	2	By: Parker H.B. No. 1962
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the franchise tax and alternative revenue sources and
8	8	spending priorities for this state; repealing the franchise tax.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. This Act may be cited as the Revenue Reform Act
11	11	of 2015.
12	12	SECTION 2. (a) The comptroller of public accounts shall
13	13	conduct a comprehensive study that:
14	14	(1) analyzes and compares:
15	15	(A) the feasibility of implementing alternative
16	16	methods to the franchise tax imposed under Chapter 171, Tax Code, by
17	17	which revenue may be generated to address the needs of this state;
18	18	and
19	19	(B) the effectiveness of each of those methods in
20	20	generating sufficient revenue to address those needs; and
21	21	(2) prioritizes the revenue needs of this state and
22	22	identifies potential reductions in expenditures by this state.
23	23	(b) The comptroller of public accounts shall consider the
24	24	funding priorities and requirements established by the Texas
25	25	Constitution in prioritizing the revenue needs of this state as
26	26	required by Subsection (a)(2) of this section.
27	27	(c) The study conducted under Subsection (a) of this section
28	28	must include an analysis and comparison of the following
29	29	revenue-generating methods:
30	30	(1) imposing a transaction tax in this state;
31	31	(2) imposing a value-added tax in this state;
32	32	(3) eliminating exemptions from the sales and use tax
33	33	imposed under Chapter 151, Tax Code;
34	34	(4) increasing the rate of the sales and use tax
35	35	imposed under Chapter 151, Tax Code;
36	36	(5) imposing the sales and use tax under Chapter 151,
37	37	Tax Code, according to rate brackets, the applications of which
38	38	vary according to the sales price of a taxable item;
39	39	(6) imposing a business sales tax in this state in
40	40	addition to the sales and use tax imposed under Chapter 151, Tax
41	41	Code;
42	42	(7) any other method the comptroller of public
43	43	accounts considers potentially effective in addressing the revenue
44	44	needs of this state; and
45	45	(8) imposing a business franchise tax in this state on
46	46	the basis of net profit.
47	47	(d) Not later than November 1, 2016, the comptroller of
48	48	public accounts shall submit a report to the legislature regarding
49	49	the results of the study conducted under this section. The report
50	50	must:
51	51	(1) identify one or more revenue-generating methods
52	52	the comptroller determines would be most effective in meeting the
53	53	revenue needs of this state;
54	54	(2) include a description of any legislation necessary
55	55	to implement the methods identified under Subdivision (1) of this
56	56	subsection; and
57	57	(3) propose specific reductions in expenditures by
58	58	this state and any legislation necessary to implement those
59	59	reductions.
60	60	SECTION 3. Effective January 1, 2020, Chapter 171, Tax
61	61	Code, is repealed.
62	62	SECTION 4. The change in law made by Section 3 of this Act
63	63	does not affect tax liability accruing before the effective date of
64	64	that section. That liability continues in effect as if this Act had
65	65	not been enacted, and the former law is continued in effect for the
66	66	collection of taxes due and for civil and criminal enforcement of
67	67	the liability for those taxes.
68	68	SECTION 5. Except as otherwise provided by this Act, this
69	69	Act takes effect September 1, 2015.