| 1 | 1 | | 84R3163 T |
|---|
| 2 | 2 | | By: Creighton S.B. No. 186 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the franchise tax and alternative revenue sources and |
|---|
| 8 | 8 | | spending priorities for this state; repealing the franchise tax. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. This Act may be cited as the Revenue Reform Act |
|---|
| 11 | 11 | | of 2015. |
|---|
| 12 | 12 | | SECTION 2. (a) The comptroller of public accounts shall |
|---|
| 13 | 13 | | conduct a comprehensive study that: |
|---|
| 14 | 14 | | (1) analyzes and compares: |
|---|
| 15 | 15 | | (A) the feasibility of implementing alternative |
|---|
| 16 | 16 | | methods to the franchise tax imposed under Chapter 171, Tax Code, by |
|---|
| 17 | 17 | | which revenue may be generated to address the needs of this state; |
|---|
| 18 | 18 | | and |
|---|
| 19 | 19 | | (B) the effectiveness of each of those methods in |
|---|
| 20 | 20 | | generating sufficient revenue to address those needs; and |
|---|
| 21 | 21 | | (2) prioritizes the revenue needs of this state and |
|---|
| 22 | 22 | | identifies potential reductions in expenditures by this state. |
|---|
| 23 | 23 | | (b) The comptroller of public accounts shall consider the |
|---|
| 24 | 24 | | funding priorities and requirements established by the Texas |
|---|
| 25 | 25 | | Constitution in prioritizing the revenue needs of this state as |
|---|
| 26 | 26 | | required by Subsection (a)(2) of this section. |
|---|
| 27 | 27 | | (c) The study conducted under Subsection (a) of this section |
|---|
| 28 | 28 | | must include an analysis and comparison of the following |
|---|
| 29 | 29 | | revenue-generating methods: |
|---|
| 30 | 30 | | (1) imposing a transaction tax in this state; |
|---|
| 31 | 31 | | (2) imposing a value-added tax in this state; |
|---|
| 32 | 32 | | (3) eliminating exemptions from the sales and use tax |
|---|
| 33 | 33 | | imposed under Chapter 151, Tax Code; |
|---|
| 34 | 34 | | (4) increasing the rate of the sales and use tax |
|---|
| 35 | 35 | | imposed under Chapter 151, Tax Code; |
|---|
| 36 | 36 | | (5) imposing the sales and use tax under Chapter 151, |
|---|
| 37 | 37 | | Tax Code, according to rate brackets, the applications of which |
|---|
| 38 | 38 | | vary according to the sales price of a taxable item; |
|---|
| 39 | 39 | | (6) imposing a business sales tax in this state in |
|---|
| 40 | 40 | | addition to the sales and use tax imposed under Chapter 151, Tax |
|---|
| 41 | 41 | | Code; |
|---|
| 42 | 42 | | (7) any other method the comptroller of public |
|---|
| 43 | 43 | | accounts considers potentially effective in addressing the revenue |
|---|
| 44 | 44 | | needs of this state; and |
|---|
| 45 | 45 | | (8) imposing a business franchise tax in this state on |
|---|
| 46 | 46 | | the basis of net profit. |
|---|
| 47 | 47 | | (d) Not later than November 1, 2016, the comptroller of |
|---|
| 48 | 48 | | public accounts shall submit a report to the legislature regarding |
|---|
| 49 | 49 | | the results of the study conducted under this section. The report |
|---|
| 50 | 50 | | must: |
|---|
| 51 | 51 | | (1) identify one or more revenue-generating methods |
|---|
| 52 | 52 | | the comptroller determines would be most effective in meeting the |
|---|
| 53 | 53 | | revenue needs of this state; |
|---|
| 54 | 54 | | (2) include a description of any legislation necessary |
|---|
| 55 | 55 | | to implement the methods identified under Subdivision (1) of this |
|---|
| 56 | 56 | | subsection; and |
|---|
| 57 | 57 | | (3) propose specific reductions in expenditures by |
|---|
| 58 | 58 | | this state and any legislation necessary to implement those |
|---|
| 59 | 59 | | reductions. |
|---|
| 60 | 60 | | SECTION 3. Effective January 1, 2020, Chapter 171, Tax |
|---|
| 61 | 61 | | Code, is repealed. |
|---|
| 62 | 62 | | SECTION 4. The change in law made by Section 3 of this Act |
|---|
| 63 | 63 | | does not affect tax liability accruing before the effective date of |
|---|
| 64 | 64 | | that section. That liability continues in effect as if this Act had |
|---|
| 65 | 65 | | not been enacted, and the former law is continued in effect for the |
|---|
| 66 | 66 | | collection of taxes due and for civil and criminal enforcement of |
|---|
| 67 | 67 | | the liability for those taxes. |
|---|
| 68 | 68 | | SECTION 5. Except as otherwise provided by this Act, this |
|---|
| 69 | 69 | | Act takes effect September 1, 2015. |
|---|