Texas 2015 - 84th Regular

Texas Senate Bill SB1049 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Campbell, et al. S.B. No. 1049
2		-	(Sheets, Bohac, Bonnen of Brazoria)
	1	+	S.B. No. 1049
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to an exemption from the franchise tax and certain filing
8	6		fees for certain businesses owned by veterans during an initial
9	7		period of operation in the state.
10	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	9		SECTION 1. Section 171.0001(4), Tax Code, is amended to
12	10		read as follows:
13	11		(4) "Beginning date" means:
14	12		(A) except as provided by Paragraph (B):
15	13		(i) for a taxable entity chartered or
16	14		organized in this state, the date on which the taxable entity's
17	15		charter or organization takes effect; and
18	16		(ii) [(B)] for any other taxable entity,
19	17		the date on which the taxable entity begins doing business in this
20	18		state; or
21	19		(B) for a taxable entity that qualifies as a new
22	20		veteran-owned business as defined by Section 171.0005, the earlier
23	21		of:
24	22		(i) the fifth anniversary of the date on
25	23		which the taxable entity begins doing business in this state; or
26	24		(ii) the date the taxable entity ceases to
27	25		qualify as a new veteran-owned business as defined by Section
28	26		171.0005.
29	27		SECTION 2. Effective January 1, 2020, Section 171.0001(4),
30	28		Tax Code, is amended to read as follows:
31	29		(4) "Beginning date" means:
32	30		(A) for a taxable entity chartered or organized
33	31		in this state, the date on which the taxable entity's charter or
34	32		organization takes effect; and
35	33		(B) for any other taxable entity, the date on
36	34		which the taxable entity begins doing business in this state.
37	35		SECTION 3. Subchapter A, Chapter 171, Tax Code, is amended
38	36		by adding Section 171.0005 to read as follows:
39	37		Sec. 171.0005. DEFINITION OF NEW VETERAN-OWNED BUSINESS.
40	38		(a) A taxable entity is a new veteran-owned business only if the
41	39		taxable entity is a new business in which each owner is a natural
42	40		person who:
43	41		(1) served in and was honorably discharged from a
44	42		branch of the United States armed forces; and
45	43		(2) provides verification to the comptroller of the
46	44		person's service and discharge required by Subdivision (1).
47	45		(b) The Texas Veterans Commission shall provide to a person
48	46		who meets the requirements of Subsection (a)(1) written
49	47		verification of that status in a form required by the comptroller.
50	48		The comptroller shall adopt rules prescribing the form and content
51	49		of the verification and the manner in which the verification may be
52	50		provided to the comptroller.
53	51		(c) For purposes of Subsection (a), a new business is a
54	52		taxable entity that:
55	53		(1) is chartered or organized or otherwise formed in
56	54		this state; and
57	55		(2) first begins doing business in this state on or
58	56		after January 1, 2016.
59	57		SECTION 4. Section 171.001, Tax Code, is amended by adding
60	58		Subsection (d) to read as follows:
61	59		(d) Notwithstanding Subsection (a), the tax imposed under
62	60		this chapter is not imposed on a taxable entity that qualifies as a
63	61		new veteran-owned business as defined by Section 171.0005 until the
64	62		earlier of:
65	63		(1) the fifth anniversary of the date on which the
66	64		taxable entity begins doing business in this state; or
67	65		(2) the date the taxable entity ceases to qualify as a
68	66		new veteran-owned business as defined by Section 171.0005.
69	67		SECTION 5. Section 171.063(g), Tax Code, is amended to read
70	68		as follows:
71	69		(g) If a corporation's federal tax exemption is withdrawn by
72	70		the Internal Revenue Service for failure of the corporation to
73	71		qualify or maintain its qualification for the exemption, the
74	72		corporation's exemption under this section ends on the effective
75	73		date of that withdrawal by the Internal Revenue Service. The
76	74		effective date of the withdrawal is considered the corporation's
77	75		beginning date for purposes of determining the corporation's
78	76		privilege periods and for all other purposes of this chapter,
79	77		except that if the corporation would have been subject to Section
80	78		171.001(d) in the absence of the federal tax exemption, and the
81	79		effective date of the withdrawal is a date earlier than the date the
82	80		corporation would have become subject to the franchise tax as
83	81		provided by Section 171.001(d), the date the corporation would have
84	82		become subject to the franchise tax under that section is
85	83		considered the corporation's beginning date for those purposes.
86	84		SECTION 6. Effective January 1, 2020, Section 171.063(g),
87	85		Tax Code, is amended to read as follows:
88	86		(g) If a corporation's federal tax exemption is withdrawn by
89	87		the Internal Revenue Service for failure of the corporation to
90	88		qualify or maintain its qualification for the exemption, the
91	89		corporation's exemption under this section ends on the effective
92	90		date of that withdrawal by the Internal Revenue Service. The
93	91		effective date of the withdrawal is considered the corporation's
94	92		beginning date for purposes of determining the corporation's
95	93		privilege periods and for all other purposes of this chapter.
96	94		SECTION 7. Section 171.204, Tax Code, is amended by adding
97	95		Subsection (d) to read as follows:
98	96		(d) The comptroller may require a taxable entity on which
99	97		the tax imposed under this chapter is not imposed solely because of
100	98		the application of Section 171.001(d) to file an information report
101	99		stating the taxable entity's beginning date as determined under
102	100		Section 171.0001(4)(B) and any other information the comptroller
103	101		determines necessary. The comptroller may not require the taxable
104	102		entity to report or compute its margin.
105	103		SECTION 8. Subchapter A, Chapter 12, Business Organizations
106	104		Code, is amended by adding Section 12.005 to read as follows:
107	105		Sec. 12.005. FEE WAIVER FOR NEW VETERAN-OWNED BUSINESS.
108	106		The secretary of state shall waive all fees imposed under
109	107		Subchapter D, Chapter 4, for an entity that is a new veteran-owned
110	108		business as defined by Section 171.0005, Tax Code, until the
111	109		earlier of:
112	110		(1) the fifth anniversary of the date on which the
113	111		entity was formed; or
114	112		(2) the date the entity ceases to qualify as a new
115	113		veteran-owned business as defined by Section 171.0005, Tax Code.
116	114		SECTION 9. Effective January 1, 2020, the following
117	115		sections are repealed:
118	116		(1) Section 171.0005, Tax Code;
119	117		(2) Section 171.001(d), Tax Code;
120	118		(3) Section 171.204(d), Tax Code; and
121	119		(4) Section 12.005, Business Organizations Code.
122	120		SECTION 10. The changes in law made by this Act that take
123	121		effect January 1, 2020, do not apply to a business that first
124	122		qualifies before that date as a new veteran-owned business as
125	123		defined by Section 171.0005, Tax Code, as that section exists
126	124		immediately before that date. A business that first qualifies
127	125		before January 1, 2020, as a new veteran-owned business is governed
128	126		by the law in effect immediately before that date, and that law is
129	127		continued in effect for that purpose.
130	128		SECTION 11. Except as otherwise provided by this Act, this
131	129		Act takes effect January 1, 2016.
	130	+	______________________________ ______________________________
	131	+	President of the Senate Speaker of the House
	132	+	I hereby certify that S.B. No. 1049 passed the Senate on
	133	+	May 4, 2015, by the following vote: Yeas 27, Nays 4.
	134	+	______________________________
	135	+	Secretary of the Senate
	136	+	I hereby certify that S.B. No. 1049 passed the House on
	137	+	May 26, 2015, by the following vote: Yeas 123, Nays 17,
	138	+	two present not voting.
	139	+	______________________________
	140	+	Chief Clerk of the House
	141	+	Approved:
	142	+	______________________________
	143	+	Date
	144	+	______________________________
	145	+	Governor