By: Keough H.B. No. 321
A BILL TO BE ENTITLED
AN ACT
A bill relating to the repeal of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This act may be cited as the Business Tax Relief
Act.
SECTION 2. Section 1(c), Chapter 286 (H.B. 4765), Acts of
the 81st Legislature, Regular Session, 2009, as amended by Section
37.01, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
Session, 2011, is repealed.
SECTION 3. Section 2, Chapter 286 (H.B. 4765), Acts of the
81st Legislature, Regular Session, 2009, as amended by Section
37.02, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
Session, 2011, and which amended former Subsection (d), Section
171.002, Tax Code, is repealed.
SECTION 4. Section 3, Chapter 286 (H.B. 4765), Acts of the
81st Legislature, Regular Session, 2009, as amended by Section
37.03, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
Session, 2011, and which amended former Subsection (a), Section
171.0021, Tax Code, is repealed.
SECTION 5. (a) Chapter 171, Tax Code, is repealed.
(b) A taxable entity that is subject to the franchise tax
imposed under Chapter 171, Tax Code, on December 31, 2015, shall
file a final franchise tax return and pay a transitional tax as
required by this subsection on or before May 15, 2016. The
transitional tax is equal to the tax the taxable entity would have
paid in 2016 under Chapter 171, Tax Code, if Chapter 171, Tax Code,
had not been repealed. The provisions of Chapter 171, Tax Code,
relating to the computation and payment of the franchise tax remain
in effect after the repeal of Chapter 171, Tax Code, by this section
for the purposes of computing and paying the transitional tax
required by this subsection.
(c) Chapter 171, Tax Code, and Subtitle B, Title 2, Tax
Code, continue to apply to audits, deficiencies, redeterminations,
and refunds of any tax due or collected under Chapter 171, including
the tax due as provided by Subsection (b) of this section, until
barred by limitations.
(d) The repeal of Chapter 171, Tax Code, does not affect:
(1) the status of a taxable entity that has had its
corporate privileges, certificate of authority, certificate of
organization, certificate of limited partnership, corporate
charter, or registration revoked, suit filed against it, or a
receiver appointed under Subchapter F, G, or H of that chapter;
(2) the ability of the comptroller, secretary of
state, or attorney general to take action against a taxable entity
under Subchapter F, G, or H of that chapter for actions that took
place before the repeal; or
(3) the right of a taxable entity to contest a
forfeiture, revocation, lawsuit, or appointment of a receiver under
Subchapter F, G, or H of that chapter.
(e) This section takes effect January 1, 2017.
SECTION 6. Sections 171.0021 and 171.1016(d), Tax Code, are
repealed.
SECTION 7. Except as otherwise provided by this Act, this
Act applies only to a report originally due on or after the
effective date of this Act.
SECTION 8. Except as otherwise provided by this Act, this
Act takes effect January 1, 2016.