| 1 | 1 | | 85R12584 CJC-D |
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| 2 | 2 | | By: Villalba H.B. No. 3621 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a franchise tax discount under certain circumstances. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended |
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| 10 | 10 | | by adding Section 171.008 to read as follows: |
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| 11 | 11 | | Sec. 171.008. DISCOUNT FROM TAX LIABILITY. (a) In this |
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| 12 | 12 | | section: |
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| 13 | 13 | | (1) "Biennial revenue estimate" means the estimate of |
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| 14 | 14 | | anticipated revenue to this state for the succeeding biennium that |
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| 15 | 15 | | the comptroller prepares in accordance with Section 49a(a), Article |
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| 16 | 16 | | III, Texas Constitution. |
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| 17 | 17 | | (2) "Current biennium" means the state fiscal biennium |
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| 18 | 18 | | in which a biennial revenue estimate is submitted to the governor |
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| 19 | 19 | | and legislature. |
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| 20 | 20 | | (3) "Succeeding biennium" means the state fiscal |
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| 21 | 21 | | biennium beginning after the current biennium. |
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| 22 | 22 | | (b) The comptroller shall determine and include with the |
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| 23 | 23 | | biennial revenue estimate the percentage change from the current |
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| 24 | 24 | | biennium to the succeeding biennium in total general |
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| 25 | 25 | | revenue-related funds available for certification, as shown in the |
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| 26 | 26 | | biennial revenue estimate for those bienniums. |
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| 27 | 27 | | (c) This section applies to a taxable entity's computation |
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| 28 | 28 | | of tax due for the reports originally due in each year of the |
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| 29 | 29 | | succeeding biennium only if the percentage change determined under |
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| 30 | 30 | | Subsection (b) is greater than five percent. Not later than January |
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| 31 | 31 | | 15 of each year in which this section applies, the comptroller shall |
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| 32 | 32 | | post on the comptroller's Internet website a notice regarding this |
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| 33 | 33 | | section's applicability for that year. |
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| 34 | 34 | | (d) A taxable entity is entitled to a discount of 25 percent |
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| 35 | 35 | | of the tax imposed under this chapter that the taxable entity is |
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| 36 | 36 | | required to pay after determining its taxable margin under Section |
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| 37 | 37 | | 171.101, applying the appropriate rate of the tax under Section |
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| 38 | 38 | | 171.002(a) or (b), and subtracting any other allowable credits, |
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| 39 | 39 | | including credit carryforwards. |
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| 40 | 40 | | (e) Notwithstanding Section 171.1016(c), a taxable entity |
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| 41 | 41 | | that elects to pay the tax as provided by Section 171.1016 is |
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| 42 | 42 | | entitled to a discount of 25 percent of the tax calculated under |
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| 43 | 43 | | that section. |
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| 44 | 44 | | SECTION 2. This Act applies only to a report originally due |
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| 45 | 45 | | on or after the effective date of this Act. |
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| 46 | 46 | | SECTION 3. This Act takes effect January 1, 2019. |
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