Texas 2015 - 84th Regular

Texas Senate Bill SB7 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Nelson, et al. S.B. No. 7
2		-	(In the Senate - Filed February 24, 2015;
3		-	February 24, 2015, read first time and referred to Committee on
4		-	Finance; March 23, 2015, reported adversely, with favorable
5		-	Committee Substitute by the following vote: Yeas 13, Nays 2;
6		-	March 23, 2015, sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 7 By: Nelson
9	2
10	3
11	4		A BILL TO BE ENTITLED
12	5		AN ACT
13	6		relating to the computation of and to decreasing the rates of the
14	7		franchise tax.
15	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16		-	SECTION 1. Sections 171.002(a) and (b), Tax Code, are
	9	+	SECTION 1. (a) TITLE. This Act shall be known as the
	10	+	Franchise Tax Repeal Act of 2015.
	11	+	(b) PURPOSE AND FINDINGS. The legislature finds that the
	12	+	tax imposed by Texas Tax Code Chapter 171 has not provided
	13	+	sufficient reliability for property tax relief. It is the intent of
	14	+	the legislature to promote economic growth by repealing the
	15	+	franchise tax.
	16	+	SECTION 2. Sections 171.002(a) and (b), Tax Code, are
17	17		amended to read as follows:
18	18		(a) Subject to Sections 171.003 and 171.1016 and except as
19	19		provided by Subsection (b), the rate of the franchise tax is 0.85
20	20		[one] percent of taxable margin.
21	21		(b) Subject to Sections 171.003 and 171.1016, the rate of
22	22		the franchise tax is 0.425 [0.5] percent of taxable margin for those
23	23		taxable entities primarily engaged in retail or wholesale trade.
24		-	SECTION 2. Sections 171.1016(a) and (b), Tax Code, are
	24	+	SECTION 3. Sections 171.1016(a) and (b), Tax Code, are
25	25		amended to read as follows:
26	26		(a) Notwithstanding any other provision of this chapter, a
27	27		taxable entity whose total revenue from its entire business is not
28	28		more than $20 [$10] million may elect to pay the tax imposed under
29	29		this chapter in the amount computed and at the rate provided by this
30	30		section rather than in the amount computed and at the tax rate
31	31		provided by Section 171.002.
32	32		(b) The amount of the tax for which a taxable entity that
33	33		elects to pay the tax as provided by this section is liable is
34	34		computed by:
35	35		(1) determining the taxable entity's total revenue
36	36		from its entire business, as determined under Section 171.1011;
37	37		(2) apportioning the amount computed under
38	38		Subdivision (1) to this state, as provided by Section 171.106, to
39	39		determine the taxable entity's apportioned total revenue; and
40	40		(3) multiplying the amount computed under Subdivision
41	41		(2) by the rate of 0.331 [0.575] percent.
42		-	SECTION 3. This Act applies only to a report originally due
	42	+	SECTION 4. This Act applies only to a report originally due
43	43		on or after the effective date of this Act.
44		-	SECTION 4. This Act takes effect January 1, 2016.
45		-	* * * * *
	44	+	SECTION 5. The comptroller of public accounts shall conduct
	45	+	a comprehensive study, no later than September 30th, 2016, to
	46	+	identify the effects of economic growth on future state revenues.
	47	+	The results of the study shall be reported to the governor and the
	48	+	Legislative Budget Board. The report should identify revenue
	49	+	growth allocation options to promote efficiency and sustainability
	50	+	in meeting the revenue needs of this state, including revenues
	51	+	allocated by Tax Code 171.4011, upon repeal of the franchise tax.
	52	+	SECTION 6. This Act takes effect January 1, 2016.