| 1 | 1 | | 85R679 CJC-D |
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| 2 | 2 | | By: Creighton S.B. No. 131 |
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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 the use of certain surplus state revenue to provide for |
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| 8 | 8 | | a rebate of state franchise taxes. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
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| 11 | 11 | | Subchapter K to read as follows: |
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| 12 | 12 | | SUBCHAPTER K. SURPLUS REVENUE: REBATE OF FRANCHISE TAXES |
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| 13 | 13 | | Sec. 171.551. ISSUANCE OF INDIVIDUAL REBATES. (a) Not |
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| 14 | 14 | | later than the 180th day of each state fiscal biennium, the |
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| 15 | 15 | | comptroller shall issue to each payer of the franchise tax during |
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| 16 | 16 | | the previous state fiscal biennium a rebate as provided by this |
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| 17 | 17 | | section if the comptroller has determined under Subsection (a), |
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| 18 | 18 | | Section 49-g-1, Article III, Texas Constitution, that there remains |
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| 19 | 19 | | an unencumbered positive balance of general revenues from the |
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| 20 | 20 | | preceding state fiscal biennium. |
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| 21 | 21 | | (b) The comptroller shall compute for each payer of the |
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| 22 | 22 | | franchise tax during the preceding state fiscal biennium the |
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| 23 | 23 | | fractional share of the franchise taxes to be rebated by dividing |
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| 24 | 24 | | that franchise tax payer's total franchise taxes paid during the |
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| 25 | 25 | | preceding state fiscal biennium by the total of all franchise taxes |
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| 26 | 26 | | paid under this chapter during that preceding state fiscal |
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| 27 | 27 | | biennium. |
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| 28 | 28 | | (c) The comptroller shall issue to each payer of the |
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| 29 | 29 | | franchise tax during the preceding state fiscal biennium a rebate |
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| 30 | 30 | | of franchise taxes paid in an amount equal to the fraction |
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| 31 | 31 | | determined for that payer under Subsection (b) multiplied by the |
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| 32 | 32 | | total amount of rebates to be issued under Subsection (b)(1), |
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| 33 | 33 | | Section 49-g-1, Article III, Texas Constitution. |
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| 34 | 34 | | (d) The comptroller may issue a payer's rebate by warrant or |
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| 35 | 35 | | by electronic funds transfer, as provided by rules of the |
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| 36 | 36 | | comptroller. |
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| 37 | 37 | | SECTION 2. Subchapter K, Chapter 171, Tax Code, as added by |
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| 38 | 38 | | this Act, applies beginning with the state fiscal biennium |
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| 39 | 39 | | beginning September 1, 2019. |
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| 40 | 40 | | SECTION 3. This Act takes effect on the date on which the |
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| 41 | 41 | | constitutional amendment proposed by the 85th Legislature, Regular |
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| 42 | 42 | | Session, 2017, concerning the use of unencumbered surplus state |
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| 43 | 43 | | revenues to provide for a rebate of state franchise taxes takes |
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| 44 | 44 | | effect. If that amendment is not approved by the voters, this Act |
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| 45 | 45 | | has no effect. |
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