85R2602 TJB-D
By: Estes S.B. No. 178
A BILL TO BE ENTITLED
AN ACT
relating to the repeal of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) Chapter 171, Tax Code, is repealed.
(b) A taxable entity that is subject to the franchise tax
imposed under Chapter 171, Tax Code, on December 31, 2017, shall
file a final franchise tax report and pay a transitional tax as
required by this subsection on or before May 15, 2018. The
transitional tax is equal to the tax the taxable entity would have
paid in 2018 under Chapter 171, Tax Code, if Chapter 171, Tax Code,
had not been repealed. The provisions of Chapter 171, Tax Code,
relating to the computation and payment of the franchise tax and the
filing of a franchise tax report that are in effect on December 31,
2017, remain in effect after the repeal of Chapter 171, Tax Code, by
this section for the purposes of computing and paying the
transitional tax and filing a franchise tax report as required by
this subsection.
(c) Chapter 171, Tax Code, and Subtitle B, Title 2, Tax
Code, continue to apply to audits, deficiencies, redeterminations,
and refunds of any tax due or collected under Chapter 171, including
the tax due as provided by Subsection (b) of this section, until
barred by limitations.
(d) The repeal of Chapter 171, Tax Code, does not affect:
(1) the status of a taxable entity that has had its
corporate privileges, certificate of authority, certificate of
organization, certificate of limited partnership, corporate
charter, or registration revoked, suit filed against it, or a
receiver appointed under Subchapter F, G, or H of that chapter;
(2) the ability of the comptroller of public accounts,
secretary of state, or attorney general to take action against a
taxable entity under Subchapter F, G, or H of that chapter for
actions that took place before the repeal; or
(3) the right of a taxable entity to contest a
forfeiture, revocation, lawsuit, or appointment of a receiver under
Subchapter F, G, or H of that chapter.
SECTION 2. This Act takes effect January 1, 2018.