| 1 | 1 | | By: Bonnen of Brazoria H.B. No. 33 |
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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 | | relat |
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| 7 | 7 | | ing to the EZ computation of the franchise tax. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 171.1016, Tax Code, is amended to read as |
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| 10 | 10 | | follows: |
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| 11 | 11 | | Sec. 171.1016. E-Z COMPUTATION [AND RATE]. (a) |
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| 12 | 12 | | Notwithstanding any other provision of this chapter, a taxable |
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| 13 | 13 | | entity whose total revenue from its entire business is not more than |
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| 14 | 14 | | $10 million may elect to pay the tax imposed under this chapter in |
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| 15 | 15 | | the amount computed under [and at the rate provided by] this section |
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| 16 | 16 | | rather than in the amount computed and at the tax rate provided by |
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| 17 | 17 | | Section 171.002. |
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| 18 | 18 | | (b) The amount of the tax for which a taxable entity that |
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| 19 | 19 | | elects to pay the tax as provided by this section is liable is |
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| 20 | 20 | | computed by: |
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| 21 | 21 | | (1) determining the taxable entity's total revenue |
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| 22 | 22 | | from its entire business, as determined under Section 171.1011; |
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| 23 | 23 | | (2) apportioning the amount computed under |
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| 24 | 24 | | Subdivision (1) to this state, as provided by Section 171.106, to |
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| 25 | 25 | | determine the taxable entity's apportioned total revenue; and |
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| 26 | 26 | | (3) finding the amount of tax in the table below that |
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| 27 | 27 | | corresponds to the taxable entity's apportioned total revenue: |
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| 28 | 28 | | Apportioned Total Revenue Tax Apportioned Total Revenue Tax |
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| 29 | 29 | | Apportioned Total Revenue Tax |
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| 30 | 30 | | $1,000,001-$2,000,000 $1 $1,000,001-$2,000,000 $1 |
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| 31 | 31 | | $1,000,001-$2,000,000 $1 |
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| 32 | 32 | | $2,000,001-$3,000,000 $2 $2,000,001-$3,000,000 $2 |
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| 33 | 33 | | $2,000,001-$3,000,000 $2 |
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| 34 | 34 | | $3,000,001-$4,000,000 $3 $3,000,001-$4,000,000 $3 |
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| 35 | 35 | | $3,000,001-$4,000,000 $3 |
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| 36 | 36 | | $4,000,001-$5,000,000 $4 $4,000,001-$5,000,000 $4 |
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| 37 | 37 | | $4,000,001-$5,000,000 $4 |
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| 38 | 38 | | $5,000,001-$6,000,000 $5 $5,000,001-$6,000,000 $5 |
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| 39 | 39 | | $5,000,001-$6,000,000 $5 |
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| 40 | 40 | | $6,000,001-$7,000,000 $6 $6,000,001-$7,000,000 $6 |
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| 41 | 41 | | $6,000,001-$7,000,000 $6 |
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| 42 | 42 | | $7,000,001-$8,000,000 $7 $7,000,001-$8,000,000 $7 |
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| 43 | 43 | | $7,000,001-$8,000,000 $7 |
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| 44 | 44 | | $8,000,001-$9,000,000 $8 $8,000,001-$9,000,000 $8 |
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| 45 | 45 | | $8,000,001-$9,000,000 $8 |
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| 46 | 46 | | $9,000,001-$10,000,000 $9 $9,000,001-$10,000,000 $9 |
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| 47 | 47 | | $9,000,001-$10,000,000 $9 |
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| 48 | 48 | | [(3) multiplying the amount computed under |
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| 49 | 49 | | Subdivision (2) by the rate of 0.575 percent.] |
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| 50 | 50 | | (c) A taxable entity that elects to pay the tax as provided |
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| 51 | 51 | | by this section may not take a credit, deduction, or other |
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| 52 | 52 | | adjustment that is not specifically authorized by this section. |
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| 53 | 53 | | (d) Repealed by Acts 2013, 83rd Leg., R.S., Ch. 1232, Sec. |
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| 54 | 54 | | 15, eff. January 1, 2014. |
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| 55 | 55 | | (e) A reference in this chapter or other law to the rate of |
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| 56 | 56 | | the franchise tax means, as appropriate, the rate under Section |
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| 57 | 57 | | 171.002 or, for a taxable entity that elects to pay the tax as |
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| 58 | 58 | | provided by this section, the rate calculated by dividing the |
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| 59 | 59 | | amount of tax determined according to the table in Subsection |
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| 60 | 60 | | (b)(3) by the taxable entity's apportioned total revenue [under |
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| 61 | 61 | | this section]. |
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| 62 | 62 | | SECTION 2. This Act applies only to a report originally due |
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| 63 | 63 | | on or after the effective date of this Act. |
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| 64 | 64 | | SECTION 3. This Act takes effect January 1, 2016. |
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| 65 | 65 | | |
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| 66 | 66 | | Apportioned Total Revenue Tax |
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| 67 | 67 | | |
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| 68 | 68 | | $1,000,001-$2,000,000 $1 |
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| 69 | 69 | | |
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| 70 | 70 | | $2,000,001-$3,000,000 $2 |
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| 71 | 71 | | |
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| 72 | 72 | | $3,000,001-$4,000,000 $3 |
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| 73 | 73 | | |
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| 74 | 74 | | $4,000,001-$5,000,000 $4 |
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| 75 | 75 | | |
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| 76 | 76 | | $5,000,001-$6,000,000 $5 |
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| 77 | 77 | | |
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| 78 | 78 | | $6,000,001-$7,000,000 $6 |
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| 79 | 79 | | |
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| 80 | 80 | | $7,000,001-$8,000,000 $7 |
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| 81 | 81 | | |
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| 82 | 82 | | $8,000,001-$9,000,000 $8 |
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| 83 | 83 | | |
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| 84 | 84 | | $9,000,001-$10,000,000 $9 |
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