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