Texas 2015 - 84th Regular

Texas House Bill HB2111 Compare Versions

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

Old	New	Differences
1	1	84R12875 GRM-D
2	2	By: Sheets H.B. No. 2111
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an exemption from the franchise tax and certain filing
8	8	fees for certain businesses owned by veterans during an initial
9	9	period of operation in the state.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 171.0001(4), Tax Code, is amended to
12	12	read as follows:
13	13	(4) "Beginning date" means:
14	14	(A) except as provided by Paragraph (B):
15	15	(i) for a taxable entity chartered or
16	16	organized in this state, the date on which the taxable entity's
17	17	charter or organization takes effect; and
18	18	(ii) [(B)] for any other taxable entity,
19	19	the date on which the taxable entity begins doing business in this
20	20	state; or
21	21	(B) for a taxable entity that qualifies as a new
22	22	veteran-owned business as defined by Section 171.0005, the earlier
23	23	of:
24	24	(i) the fifth anniversary of the date on
25	25	which the taxable entity begins doing business in this state; or
26	26	(ii) the date the taxable entity ceases to
27	27	qualify as a new veteran-owned business as defined by Section
28	28	171.0005.
29	29	SECTION 2. Subchapter A, Chapter 171, Tax Code, is amended
30	30	by adding Section 171.0005 to read as follows:
31	31	Sec. 171.0005. DEFINITION OF NEW VETERAN-OWNED BUSINESS.
32	32	(a) A taxable entity is a new veteran-owned business only if the
33	33	taxable entity is a new business in which each owner is a natural
34	34	person who:
35	35	(1) served in and was honorably discharged from a
36	36	branch of the United States armed forces; and
37	37	(2) provides verification to the comptroller of the
38	38	person's service and discharge required by Subdivision (1).
39	39	(b) The Texas Veterans Commission shall provide to a person
40	40	who meets the requirements of Subsection (a)(1) written
41	41	verification of that status in a form required by the comptroller.
42	42	The comptroller shall adopt rules prescribing the form and content
43	43	of the verification and the manner in which the verification may be
44	44	provided to the comptroller.
45	45	(c) For purposes of Subsection (a), a new business is a
46	46	taxable entity that:
47	47	(1) is chartered or organized or otherwise formed in
48	48	this state; and
49	49	(2) first begins doing business in this state on or
50	50	after September 1, 2015.
51	51	SECTION 3. Section 171.001, Tax Code, is amended by adding
52	52	Subsection (d) to read as follows:
53	53	(d) Notwithstanding Subsection (a), the tax imposed under
54	54	this chapter is not imposed on a taxable entity that qualifies as a
55	55	new veteran-owned business as defined by Section 171.0005 until the
56	56	earlier of:
57	57	(1) the fifth anniversary of the date on which the
58	58	taxable entity begins doing business in this state; or
59	59	(2) the date the taxable entity ceases to qualify as a
60	60	new veteran-owned business as defined by Section 171.0005.
61	61	SECTION 4. Section 171.063(g), Tax Code, is amended to read
62	62	as follows:
63	63	(g) If a corporation's federal tax exemption is withdrawn by
64	64	the Internal Revenue Service for failure of the corporation to
65	65	qualify or maintain its qualification for the exemption, the
66	66	corporation's exemption under this section ends on the effective
67	67	date of that withdrawal by the Internal Revenue Service. The
68	68	effective date of the withdrawal is considered the corporation's
69	69	beginning date for purposes of determining the corporation's
70	70	privilege periods and for all other purposes of this chapter,
71	71	except that if the corporation would have been subject to Section
72	72	171.001(d) in the absence of the federal tax exemption, and the
73	73	effective date of the withdrawal is a date earlier than the date the
74	74	corporation would have become subject to the franchise tax as
75	75	provided by Section 171.001(d), the date the corporation would have
76	76	become subject to the franchise tax under that section is
77	77	considered the corporation's beginning date for those purposes.
78	78	SECTION 5. Section 171.204, Tax Code, is amended by adding
79	79	Subsection (d) to read as follows:
80	80	(d) The comptroller may require a taxable entity on which
81	81	the tax imposed under this chapter is not imposed solely because of
82	82	the application of Section 171.001(d) to file an information report
83	83	stating the taxable entity's beginning date as determined under
84	84	Section 171.0001(4)(B) and any other information the comptroller
85	85	determines necessary. The comptroller may not require the taxable
86	86	entity to report or compute its margin.
87	87	SECTION 6. Subchapter A, Chapter 12, Business Organizations
88	88	Code, is amended by adding Section 12.005 to read as follows:
89	89	Sec. 12.005. FEE WAIVER FOR NEW VETERAN-OWNED BUSINESS.
90	90	The secretary of state shall waive all fees imposed under
91	91	Subchapter D, Chapter 4, for an entity that is a new veteran-owned
92	92	business as defined by Section 171.0005, Tax Code, until the
93	93	earlier of:
94	94	(1) the fifth anniversary of the date on which the
95	95	entity was formed; or
96	96	(2) the date the entity ceases to qualify as a new
97	97	veteran-owned business as defined by Section 171.0005, Tax Code.
98	98	SECTION 7. This Act takes effect September 1, 2015.