By: Bonnen of Brazoria H.B. No. 3482
A BILL TO BE ENTITLED
AN ACT
relating to the franchise tax; decreasing franchise tax rates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 111.0626(a), Tax Code, is amended to
read as follows:
(a) The comptroller by rule shall require electronic filing
of:
(1) a report required under Chapter 151, 201, or 202,
or an international fuel tax agreement, for a taxpayer who is also
required under Section 111.0625 to transfer payments by electronic
funds transfer; and
(2) a report required under Section 171.204.
SECTION 2. Sections 171.002(a) and (b), Tax Code, are
amended to read as follows:
(a) Subject to Sections 171.003 and 171.1016 and except as
provided by Subsection (b), the rate of the franchise tax is 0.95
[one] percent of taxable margin.
(b) Subject to Sections 171.003 and 171.1016, the rate of
the franchise tax is 0.475 [0.5] percent of taxable margin for those
taxable entities primarily engaged in retail or wholesale trade.
SECTION 3. Section 171.1012, Tax Code, is amended by adding
Subsection (p) to read as follows:
(p) Notwithstanding Subsection (e)(2) or any other
provision of this section, the cost of goods sold includes the costs
attributable to the acceptance of credit cards and debit cards as a
means of payment.
SECTION 4. Section 171.1013(c), Tax Code, is amended to
read as follows:
(c) Notwithstanding the actual amount of wages and cash
compensation paid by a taxable entity to its officers, directors,
owners, partners, and employees, a taxable entity may not include
more than $301,000 [$300,000], or the amount determined under
Section 171.006, per 12-month period on which margin is based, for
any person in the amount of wages and cash compensation it
determines under this section. If a person is paid by more than one
entity of a combined group, the combined group may not subtract in
relation to that person a total of more than $301,000 [$300,000], or
the amount determined under Section 171.006, per 12-month period on
which margin is based.
SECTION 5. Section 171.106, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) A taxable entity that is a broadcaster shall include in
the numerator of the broadcaster's apportionment factor receipts
arising from a broadcast or other distribution of film programming
by any means only if the legal domicile of the broadcaster's
customer is in this state. This subsection applies only to receipts
that are licensing income from distributing film programming. In
this subsection:
(1) "Broadcaster" means a taxable entity, not
including a cable service provider or a direct broadcast satellite
service, that is a:
(A) television station licensed by the Federal
Communications Commission;
(B) television broadcast network;
(C) cable television network; or
(D) television distribution company.
(2) "Customer" means a person, including a license
holder, that has a direct connection or contractual relationship
with a broadcaster under which the broadcaster derives revenue.
(3) "Film programming" means all or part of a live or
recorded performance, event, or production intended to be
distributed for visual and auditory perception by an audience.
(4) "Programming" includes news, entertainment,
sporting events, plays, stories, or other literary, commercial,
educational, or artistic works.
SECTION 6. (a) The comptroller of public accounts shall
conduct a comprehensive study that:
(1) analyzes and compares:
(A) the feasibility of implementing alternative
methods to the franchise tax imposed under Chapter 171, Tax Code, by
which revenue may be generated to address the needs of this state;
and
(B) the effectiveness of each of those methods in
generating sufficient revenue to address those needs; and
(2) prioritizes the revenue needs of this state and
identifies potential reductions in expenditures by this state.
(b) The comptroller of public accounts shall consider the
funding priorities and requirements established by the Texas
Constitution in prioritizing the revenue needs of this state as
required by Subsection (a)(2) of this section.
(c) This section takes effect September 1, 2015.
SECTION 7. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 8. Except as otherwise provided by this Act, this
Act takes effect January 1, 2016.