| 1 | 1 | | 84R13840 BEF-D |
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| 2 | 2 | | By: Bonnen of Brazoria H.B. No. 3471 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the taxable entities from which no franchise tax |
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| 8 | 8 | | payments are due for a period. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 171.002(d), Tax Code, is amended to read |
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| 11 | 11 | | as follows: |
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| 12 | 12 | | (d) A taxable entity is not required to pay any tax and is |
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| 13 | 13 | | not considered to owe any tax for a period if: |
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| 14 | 14 | | (1) the amount of tax computed for the taxable entity |
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| 15 | 15 | | is less than $1,000; [or] |
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| 16 | 16 | | (2) the amount of the taxable entity's total revenue |
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| 17 | 17 | | from its entire business is less than or equal to $1 million or the |
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| 18 | 18 | | amount determined under Section 171.006 per 12-month period on |
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| 19 | 19 | | which margin is based; or |
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| 20 | 20 | | (3) the taxable entity reports a loss on its federal |
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| 21 | 21 | | income tax return for the period on which margin is based. |
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| 22 | 22 | | SECTION 2. Section 171.1015(d), Tax Code, is amended to |
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| 23 | 23 | | read as follows: |
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| 24 | 24 | | (d) Section 171.002(d) does not apply to an upper tier |
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| 25 | 25 | | entity if, before the attribution of any total revenue by a lower |
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| 26 | 26 | | tier entity to an upper tier entity under this section, the lower |
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| 27 | 27 | | tier entity does not meet the criteria of Section 171.002(d)(1), |
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| 28 | 28 | | [or] (d)(2), or (d)(3). |
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| 29 | 29 | | SECTION 3. This Act applies only to a report originally due |
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| 30 | 30 | | on or after the effective date of this Act. |
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| 31 | 31 | | SECTION 4. This Act takes effect January 1, 2016. |
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