84R12344 GRM-D
By: Stephenson H.B. No. 3399
A BILL TO BE ENTITLED
AN ACT
relating to franchise tax payments and reports.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.152(c), Tax Code, is amended to read
as follows:
(c) Payment of the tax covering the regular annual period is
due May 15 [,] of each year after the beginning of the regular
annual period unless the taxable entity receives an extension under
Section 171.202(c), in which case payment of the tax is due November
15 of that year. However, if the first anniversary of the taxable
entity's beginning date is after October 3 and before January 1, the
payment of the tax covering the first regular annual period is due
on the same date as the tax covering the initial period.
SECTION 2. Section 171.202(c), Tax Code, is amended to read
as follows:
(c) The comptroller shall grant an extension of time to a
taxable entity [that is not required by rule to make its tax
payments by electronic funds transfer] for the filing of a report
required by this section to any date on or before the next November
15, if a taxable entity:
(1) requests the extension, on or before May 15, on a
form provided by the comptroller; and
(2) remits with the request interest on the amount of
tax reported as due on or before November 15 at the interest rate
prescribed by Section 111.060[:
[(A) not less than 90 percent of the amount of tax
reported as due on the report filed on or before November 15; or
[(B) 100 percent of the tax reported as due for
the previous calendar year on the report due in the previous
calendar year and filed on or before May 14].
SECTION 3. Section 171.362, Tax Code, is amended by
amending Subsection (d) and adding Subsection (g) to read as
follows:
(d) If a taxable entity required [electing] to remit
interest under Section 171.202(c)(2) [171.202(c)(2)(A)] remits
less than the amount required, the penalties imposed by this
chapter [section] and the interest imposed under Section 111.060
are assessed against the difference between the amount required to
be remitted under Section 171.202(c)(2) [171.202(c)(2)(A)] and the
amount actually remitted on or before May 15.
(g) For purposes of this section, a payment made by
electronic funds transfer is considered to be made on the date the
electronic funds transfer is initiated by the taxpayer if:
(1) the electronic funds transfer is initiated not
later than the last day the payment may be timely made; and
(2) the comptroller receives the money not later than
the second business day after the last day the payment may be timely
made.
SECTION 4. Sections 171.202(d), (e), (f), (h), and (i), Tax
Code, are repealed.
SECTION 5. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 6. Section 171.362(g), Tax Code, as added by this
Act, applies only to a payment initiated on or after the effective
date of this Act. A payment initiated before the effective date of
this Act is governed by the law in effect on the date the payment was
initiated, and the former law is continued in effect for that
purpose.
SECTION 7. This Act takes effect January 1, 2016.