By: Bonnen of Brazoria H.B. No. 33
A BILL TO BE ENTITLED
AN ACT
relat
ing to the EZ computation of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1016, Tax Code, is amended to read as
follows:
Sec. 171.1016. E-Z COMPUTATION [AND RATE]. (a)
Notwithstanding any other provision of this chapter, a taxable
entity whose total revenue from its entire business is not more than
$10 million may elect to pay the tax imposed under this chapter in
the amount computed under [and at the rate provided by] this section
rather than in the amount computed and at the tax rate provided by
Section 171.002.
(b) The amount of the tax for which a taxable entity that
elects to pay the tax as provided by this section is liable is
computed by:
(1) determining the taxable entity's total revenue
from its entire business, as determined under Section 171.1011;
(2) apportioning the amount computed under
Subdivision (1) to this state, as provided by Section 171.106, to
determine the taxable entity's apportioned total revenue; and
(3) finding the amount of tax in the table below that
corresponds to the taxable entity's apportioned total revenue:
Apportioned Total Revenue Tax Apportioned Total Revenue Tax
Apportioned Total Revenue Tax
$1,000,001-$2,000,000 $1 $1,000,001-$2,000,000 $1
$1,000,001-$2,000,000 $1
$2,000,001-$3,000,000 $2 $2,000,001-$3,000,000 $2
$2,000,001-$3,000,000 $2
$3,000,001-$4,000,000 $3 $3,000,001-$4,000,000 $3
$3,000,001-$4,000,000 $3
$4,000,001-$5,000,000 $4 $4,000,001-$5,000,000 $4
$4,000,001-$5,000,000 $4
$5,000,001-$6,000,000 $5 $5,000,001-$6,000,000 $5
$5,000,001-$6,000,000 $5
$6,000,001-$7,000,000 $6 $6,000,001-$7,000,000 $6
$6,000,001-$7,000,000 $6
$7,000,001-$8,000,000 $7 $7,000,001-$8,000,000 $7
$7,000,001-$8,000,000 $7
$8,000,001-$9,000,000 $8 $8,000,001-$9,000,000 $8
$8,000,001-$9,000,000 $8
$9,000,001-$10,000,000 $9 $9,000,001-$10,000,000 $9
$9,000,001-$10,000,000 $9
[(3) multiplying the amount computed under
Subdivision (2) by the rate of 0.575 percent.]
(c) A taxable entity that elects to pay the tax as provided
by this section may not take a credit, deduction, or other
adjustment that is not specifically authorized by this section.
(d) Repealed by Acts 2013, 83rd Leg., R.S., Ch. 1232, Sec.
15, eff. January 1, 2014.
(e) A reference in this chapter or other law to the rate of
the franchise tax means, as appropriate, the rate under Section
171.002 or, for a taxable entity that elects to pay the tax as
provided by this section, the rate calculated by dividing the
amount of tax determined according to the table in Subsection
(b)(3) by the taxable entity's apportioned total revenue [under
this section].
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2016.
Apportioned Total Revenue Tax
$1,000,001-$2,000,000 $1
$2,000,001-$3,000,000 $2
$3,000,001-$4,000,000 $3
$4,000,001-$5,000,000 $4
$5,000,001-$6,000,000 $5
$6,000,001-$7,000,000 $6
$7,000,001-$8,000,000 $7
$8,000,001-$9,000,000 $8
$9,000,001-$10,000,000 $9