85R12584 CJC-D
By: Villalba H.B. No. 3621
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax discount under certain circumstances.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended
by adding Section 171.008 to read as follows:
Sec. 171.008. DISCOUNT FROM TAX LIABILITY. (a) In this
section:
(1) "Biennial revenue estimate" means the estimate of
anticipated revenue to this state for the succeeding biennium that
the comptroller prepares in accordance with Section 49a(a), Article
III, Texas Constitution.
(2) "Current biennium" means the state fiscal biennium
in which a biennial revenue estimate is submitted to the governor
and legislature.
(3) "Succeeding biennium" means the state fiscal
biennium beginning after the current biennium.
(b) The comptroller shall determine and include with the
biennial revenue estimate the percentage change from the current
biennium to the succeeding biennium in total general
revenue-related funds available for certification, as shown in the
biennial revenue estimate for those bienniums.
(c) This section applies to a taxable entity's computation
of tax due for the reports originally due in each year of the
succeeding biennium only if the percentage change determined under
Subsection (b) is greater than five percent. Not later than January
15 of each year in which this section applies, the comptroller shall
post on the comptroller's Internet website a notice regarding this
section's applicability for that year.
(d) A taxable entity is entitled to a discount of 25 percent
of the tax imposed under this chapter that the taxable entity is
required to pay after determining its taxable margin under Section
171.101, applying the appropriate rate of the tax under Section
171.002(a) or (b), and subtracting any other allowable credits,
including credit carryforwards.
(e) Notwithstanding Section 171.1016(c), a taxable entity
that elects to pay the tax as provided by Section 171.1016 is
entitled to a discount of 25 percent of the tax calculated under
that section.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2019.