Texas 2015 - 84th Regular

Texas House Bill HB1974 Compare Versions

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

Old	New	Differences
1	1	84R2823 CJC-D
2	2	By: Keffer H.B. No. 1974
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the use of certain surplus state revenue to phase out
8	8	the franchise tax.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 171.002(a) and (b), Tax Code, are
11	11	amended to read as follows:
12	12	(a) Subject to Sections 171.003, 171.007, and 171.1016 and
13	13	except as provided by Subsection (b), the rate of the franchise tax
14	14	is one percent of taxable margin.
15	15	(b) Subject to Sections 171.003, 171.007, and 171.1016, the
16	16	rate of the franchise tax is 0.5 percent of taxable margin for those
17	17	taxable entities primarily engaged in retail or wholesale trade.
18	18	SECTION 2. Subchapter A, Chapter 171, Tax Code, is amended
19	19	by adding Section 171.007 to read as follows:
20	20	Sec. 171.007. COMPTROLLER TAX RATE ADJUSTMENT. (a) On the
21	21	date the comptroller makes the transfer of any unencumbered
22	22	positive balance of general revenues from a preceding biennium to
23	23	the economic stabilization fund as described by Section 49-g(b),
24	24	Article III, Texas Constitution, the comptroller shall:
25	25	(1) identify an amount of money equal to 25 percent of
26	26	those unencumbered general revenues that are not transferred under
27	27	that subsection;
28	28	(2) estimate the amount of revenue attributable to the
29	29	tax imposed under this chapter that would be received by the
30	30	comptroller during the current state fiscal biennium if the tax
31	31	were imposed at the rates under Sections 171.002(a) and (b) and
32	32	Section 171.1016 in effect on the date the estimate is made; and
33	33	(3) subtract the amount of money identified under
34	34	Subdivision (1) from the amount of revenue estimated under
35	35	Subdivision (2).
36	36	(b) If the amount of money determined under Subsection
37	37	(a)(3) is greater than zero, the comptroller shall determine the
38	38	rates for purposes of Sections 171.002(a) and (b) and Section
39	39	171.1016 that, if applied beginning January 1 of the current state
40	40	fiscal biennium, are estimated to generate the amount of money
41	41	determined by the comptroller under that subsection for that
42	42	biennium. In determining the rates under this subsection, the
43	43	comptroller shall proportionally reduce the rates under Sections
44	44	171.002(a) and (b) and Section 171.1016 that are in effect on the
45	45	date the comptroller makes the determination.
46	46	(c) Not later than December 15 of each odd-numbered year,
47	47	the comptroller shall:
48	48	(1) adopt the adjusted tax rates determined under
49	49	Subsection (b);
50	50	(2) publish notice of the adjusted tax rates in the
51	51	Texas Register; and
52	52	(3) provide any other notice relating to the adjusted
53	53	tax rates that the comptroller considers appropriate.
54	54	(d) The adjusted tax rates adopted by the comptroller under
55	55	this section apply to a report originally due on or after January 1
56	56	of the even-numbered year following the date the rates are adopted.
57	57	(e) In the state fiscal year in which the amount of money
58	58	determined under Subsection (a)(3) is zero or less:
59	59	(1) this chapter expires as provided by Section
60	60	171.975; and
61	61	(2) not later than December 15 of that year the
62	62	comptroller shall:
63	63	(A) publish notice in the Texas Register that an
64	64	entity previously subject to the tax imposed under this chapter is
65	65	no longer required to file a report or pay the tax; and
66	66	(B) provide any other notice relating to the
67	67	expiration of the tax that the comptroller considers appropriate.
68	68	(f) An action taken by the comptroller under this section is
69	69	final and may not be appealed.
70	70	(g) The comptroller shall adopt rules to implement this
71	71	section.
72	72	SECTION 3. Sections 171.1016(b) and (e), Tax Code, are
73	73	amended to read as follows:
74	74	(b) The amount of the tax for which a taxable entity that
75	75	elects to pay the tax as provided by this section is liable is
76	76	computed by:
77	77	(1) determining the taxable entity's total revenue
78	78	from its entire business, as determined under Section 171.1011;
79	79	(2) apportioning the amount computed under
80	80	Subdivision (1) to this state, as provided by Section 171.106, to
81	81	determine the taxable entity's apportioned total revenue; and
82	82	(3) multiplying the amount computed under Subdivision
83	83	(2) by the rate of 0.575 percent or, if applicable, the adjusted tax
84	84	rate adopted by the comptroller under Section 171.007.
85	85	(e) A reference in this chapter or other law to the rate of
86	86	the franchise tax means, as appropriate:
87	87	(1) [,] the rate under Section 171.002 or, for a
88	88	taxable entity that elects to pay the tax as provided by this
89	89	section, the rate under this section; or
90	90	(2) the adjusted rates under Section 171.007.
91	91	SECTION 4. Chapter 171, Tax Code, is amended by adding
92	92	Subchapter Z to read as follows:
93	93	SUBCHAPTER Z. EXPIRATION
94	94	Sec. 171.975. EXPIRATION. This chapter expires on December
95	95	31 of the year in which the amount of money determined by the
96	96	comptroller under Section 171.007(a)(3) is zero or less.
97	97	SECTION 5. (a) Chapter 171, Tax Code, and Subtitle B,
98	98	Title 2, Tax Code, continue to apply to audits, deficiencies,
99	99	redeterminations, and refunds of any tax due or collected under
100	100	Chapter 171 until barred by limitations.
101	101	(b) The expiration of Chapter 171, Tax Code, does not
102	102	affect:
103	103	(1) the status of a taxable entity that has had its
104	104	corporate privileges, certificate of authority, certificate of
105	105	organization, certificate of limited partnership, corporate
106	106	charter, or registration revoked, suit filed against it, or a
107	107	receiver appointed under Subchapter F, G, or H of that chapter;
108	108	(2) the ability of the comptroller of public accounts,
109	109	secretary of state, or attorney general to take action against a
110	110	taxable entity under Subchapter F, G, or H of that chapter for
111	111	actions that took place before the chapter expired; or
112	112	(3) the right of a taxable entity to contest a
113	113	forfeiture, revocation, lawsuit, or appointment of a receiver under
114	114	Subchapter F, G, or H of that chapter.
115	115	SECTION 6. Except as otherwise provided by this Act, this
116	116	Act takes effect September 1, 2015.