85R679 CJC-D
By: Creighton S.B. No. 131
A BILL TO BE ENTITLED
AN ACT
relating to the use of certain surplus state revenue to provide for
a rebate of state franchise taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. SURPLUS REVENUE: REBATE OF FRANCHISE TAXES
Sec. 171.551. ISSUANCE OF INDIVIDUAL REBATES. (a) Not
later than the 180th day of each state fiscal biennium, the
comptroller shall issue to each payer of the franchise tax during
the previous state fiscal biennium a rebate as provided by this
section if the comptroller has determined under Subsection (a),
Section 49-g-1, Article III, Texas Constitution, that there remains
an unencumbered positive balance of general revenues from the
preceding state fiscal biennium.
(b) The comptroller shall compute for each payer of the
franchise tax during the preceding state fiscal biennium the
fractional share of the franchise taxes to be rebated by dividing
that franchise tax payer's total franchise taxes paid during the
preceding state fiscal biennium by the total of all franchise taxes
paid under this chapter during that preceding state fiscal
biennium.
(c) The comptroller shall issue to each payer of the
franchise tax during the preceding state fiscal biennium a rebate
of franchise taxes paid in an amount equal to the fraction
determined for that payer under Subsection (b) multiplied by the
total amount of rebates to be issued under Subsection (b)(1),
Section 49-g-1, Article III, Texas Constitution.
(d) The comptroller may issue a payer's rebate by warrant or
by electronic funds transfer, as provided by rules of the
comptroller.
SECTION 2. Subchapter K, Chapter 171, Tax Code, as added by
this Act, applies beginning with the state fiscal biennium
beginning September 1, 2019.
SECTION 3. This Act takes effect on the date on which the
constitutional amendment proposed by the 85th Legislature, Regular
Session, 2017, concerning the use of unencumbered surplus state
revenues to provide for a rebate of state franchise taxes takes
effect. If that amendment is not approved by the voters, this Act
has no effect.