Texas 2015 - 84th Regular

Texas House Bill HB250 Compare Versions

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

Old	New	Differences
1	1	84R954 TJB-D
2	2	By: Leach H.B. No. 250
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 0.8
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 0.4 [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 0.56
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 0.28 [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 0.336
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 0.168 [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, 2019, Sections
41	41	171.002(a) and (b), Tax Code, are amended to read as follows:
42	42	(a) Subject to Sections 171.003 and 171.1016 and except as
43	43	provided by Subsection (b), the rate of the franchise tax is 0.168
44	44	[one] percent of taxable margin.
45	45	(b) Subject to Sections 171.003 and 171.1016, the rate of
46	46	the franchise tax is 0.084 [0.5] percent of taxable margin for those
47	47	taxable entities primarily engaged in retail or wholesale trade.
48	48	(b) This section applies only to a report originally due on
49	49	or after January 1, 2019.
50	50	SECTION 5. (a) Effective January 1, 2016, Section
51	51	171.1016(b), Tax Code, is amended to read as follows:
52	52	(b) The amount of the tax for which a taxable entity that
53	53	elects to pay the tax as provided by this section is liable is
54	54	computed by:
55	55	(1) determining the taxable entity's total revenue
56	56	from its entire business, as determined under Section 171.1011;
57	57	(2) apportioning the amount computed under
58	58	Subdivision (1) to this state, as provided by Section 171.106, to
59	59	determine the taxable entity's apportioned total revenue; and
60	60	(3) multiplying the amount computed under Subdivision
61	61	(2) by the rate of 0.46 [0.575] percent.
62	62	(b) This section applies only to a report originally due on
63	63	or after January 1, 2016.
64	64	SECTION 6. (a) Effective January 1, 2017, Section
65	65	171.1016(b), Tax Code, is amended to read as follows:
66	66	(b) The amount of the tax for which a taxable entity that
67	67	elects to pay the tax as provided by this section is liable is
68	68	computed by:
69	69	(1) determining the taxable entity's total revenue
70	70	from its entire business, as determined under Section 171.1011;
71	71	(2) apportioning the amount computed under
72	72	Subdivision (1) to this state, as provided by Section 171.106, to
73	73	determine the taxable entity's apportioned total revenue; and
74	74	(3) multiplying the amount computed under Subdivision
75	75	(2) by the rate of 0.322 [0.575] percent.
76	76	(b) This section applies only to a report originally due on
77	77	or after January 1, 2017.
78	78	SECTION 7. (a) Effective January 1, 2018, Section
79	79	171.1016(b), Tax Code, is amended to read as follows:
80	80	(b) The amount of the tax for which a taxable entity that
81	81	elects to pay the tax as provided by this section is liable is
82	82	computed by:
83	83	(1) determining the taxable entity's total revenue
84	84	from its entire business, as determined under Section 171.1011;
85	85	(2) apportioning the amount computed under
86	86	Subdivision (1) to this state, as provided by Section 171.106, to
87	87	determine the taxable entity's apportioned total revenue; and
88	88	(3) multiplying the amount computed under Subdivision
89	89	(2) by the rate of 0.193 [0.575] percent.
90	90	(b) This section applies only to a report originally due on
91	91	or after January 1, 2018.
92	92	SECTION 8. (a) Effective January 1, 2019, Section
93	93	171.1016(b), Tax Code, is amended to read as follows:
94	94	(b) The amount of the tax for which a taxable entity that
95	95	elects to pay the tax as provided by this section is liable is
96	96	computed by:
97	97	(1) determining the taxable entity's total revenue
98	98	from its entire business, as determined under Section 171.1011;
99	99	(2) apportioning the amount computed under
100	100	Subdivision (1) to this state, as provided by Section 171.106, to
101	101	determine the taxable entity's apportioned total revenue; and
102	102	(3) multiplying the amount computed under Subdivision
103	103	(2) by the rate of 0.097 [0.575] percent.
104	104	(b) This section applies only to a report originally due on
105	105	or after January 1, 2019.
106	106	SECTION 9. (a) Chapter 171, Tax Code, is repealed.
107	107	(b) A taxable entity that is subject to the franchise tax
108	108	imposed under Chapter 171, Tax Code, on December 31, 2019, shall
109	109	file a final franchise tax report and pay a transitional tax as
110	110	required by this subsection on or before May 15, 2020. The
111	111	transitional tax is equal to the tax the taxable entity would have
112	112	paid in 2020 under Chapter 171, Tax Code, if Chapter 171, Tax Code,
113	113	had not been repealed. The provisions of Chapter 171, Tax Code,
114	114	relating to the computation and payment of the franchise tax remain
115	115	in effect after the repeal of Chapter 171, Tax Code, by this section
116	116	for the purposes of computing and paying the transitional tax
117	117	required by this subsection.
118	118	(c) Chapter 171, Tax Code, and Subtitle B, Title 2, Tax
119	119	Code, continue to apply to audits, deficiencies, redeterminations,
120	120	and refunds of any tax due or collected under Chapter 171, including
121	121	the tax due as provided by Subsection (b) of this section, until
122	122	barred by limitations.
123	123	(d) The repeal of Chapter 171, Tax Code, does not affect:
124	124	(1) the status of a taxable entity that has had its
125	125	corporate privileges, certificate of authority, certificate of
126	126	organization, certificate of limited partnership, corporate
127	127	charter, or registration revoked, suit filed against it, or a
128	128	receiver appointed under Subchapter F, G, or H of that chapter;
129	129	(2) the ability of the comptroller of public accounts,
130	130	secretary of state, or attorney general to take action against a
131	131	taxable entity under Subchapter F, G, or H of that chapter for
132	132	actions that took place before the repeal; or
133	133	(3) the right of a taxable entity to contest a
134	134	forfeiture, revocation, lawsuit, or appointment of a receiver under
135	135	Subchapter F, G, or H of that chapter.
136	136	(e) This section takes effect January 1, 2020.
137	137	SECTION 10. Except as otherwise provided by this Act, this
138	138	Act applies only to a report originally due on or after the
139	139	effective date of this Act.
140	140	SECTION 11. Except as otherwise provided by this Act, this
141	141	Act takes effect January 1, 2016.