| 1 | 1 | | By: Keough H.B. No. 321 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | A bill relating to the repeal of the franchise tax. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. This act may be cited as the Business Tax Relief |
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| 9 | 9 | | Act. |
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| 10 | 10 | | SECTION 2. Section 1(c), Chapter 286 (H.B. 4765), Acts of |
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| 11 | 11 | | the 81st Legislature, Regular Session, 2009, as amended by Section |
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| 12 | 12 | | 37.01, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called |
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| 13 | 13 | | Session, 2011, is repealed. |
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| 14 | 14 | | SECTION 3. Section 2, Chapter 286 (H.B. 4765), Acts of the |
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| 15 | 15 | | 81st Legislature, Regular Session, 2009, as amended by Section |
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| 16 | 16 | | 37.02, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called |
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| 17 | 17 | | Session, 2011, and which amended former Subsection (d), Section |
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| 18 | 18 | | 171.002, Tax Code, is repealed. |
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| 19 | 19 | | SECTION 4. Section 3, Chapter 286 (H.B. 4765), Acts of the |
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| 20 | 20 | | 81st Legislature, Regular Session, 2009, as amended by Section |
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| 21 | 21 | | 37.03, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called |
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| 22 | 22 | | Session, 2011, and which amended former Subsection (a), Section |
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| 23 | 23 | | 171.0021, Tax Code, is repealed. |
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| 24 | 24 | | SECTION 5. (a) Chapter 171, Tax Code, is repealed. |
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| 25 | 25 | | (b) A taxable entity that is subject to the franchise tax |
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| 26 | 26 | | imposed under Chapter 171, Tax Code, on December 31, 2015, shall |
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| 27 | 27 | | file a final franchise tax return and pay a transitional tax as |
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| 28 | 28 | | required by this subsection on or before May 15, 2016. The |
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| 29 | 29 | | transitional tax is equal to the tax the taxable entity would have |
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| 30 | 30 | | paid in 2016 under Chapter 171, Tax Code, if Chapter 171, Tax Code, |
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| 31 | 31 | | had not been repealed. The provisions of Chapter 171, Tax Code, |
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| 32 | 32 | | relating to the computation and payment of the franchise tax remain |
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| 33 | 33 | | in effect after the repeal of Chapter 171, Tax Code, by this section |
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| 34 | 34 | | for the purposes of computing and paying the transitional tax |
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| 35 | 35 | | required by this subsection. |
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| 36 | 36 | | (c) Chapter 171, Tax Code, and Subtitle B, Title 2, Tax |
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| 37 | 37 | | Code, continue to apply to audits, deficiencies, redeterminations, |
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| 38 | 38 | | and refunds of any tax due or collected under Chapter 171, including |
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| 39 | 39 | | the tax due as provided by Subsection (b) of this section, until |
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| 40 | 40 | | barred by limitations. |
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| 41 | 41 | | (d) The repeal of Chapter 171, Tax Code, does not affect: |
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| 42 | 42 | | (1) the status of a taxable entity that has had its |
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| 43 | 43 | | corporate privileges, certificate of authority, certificate of |
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| 44 | 44 | | organization, certificate of limited partnership, corporate |
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| 45 | 45 | | charter, or registration revoked, suit filed against it, or a |
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| 46 | 46 | | receiver appointed under Subchapter F, G, or H of that chapter; |
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| 47 | 47 | | (2) the ability of the comptroller, secretary of |
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| 48 | 48 | | state, or attorney general to take action against a taxable entity |
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| 49 | 49 | | under Subchapter F, G, or H of that chapter for actions that took |
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| 50 | 50 | | place before the repeal; or |
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| 51 | 51 | | (3) the right of a taxable entity to contest a |
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| 52 | 52 | | forfeiture, revocation, lawsuit, or appointment of a receiver under |
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| 53 | 53 | | Subchapter F, G, or H of that chapter. |
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| 54 | 54 | | (e) This section takes effect January 1, 2017. |
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| 55 | 55 | | SECTION 6. Sections 171.0021 and 171.1016(d), Tax Code, are |
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| 56 | 56 | | repealed. |
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| 57 | 57 | | SECTION 7. Except as otherwise provided by this Act, this |
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| 58 | 58 | | Act applies only to a report originally due on or after the |
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| 59 | 59 | | effective date of this Act. |
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| 60 | 60 | | SECTION 8. Except as otherwise provided by this Act, this |
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| 61 | 61 | | Act takes effect January 1, 2016. |
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