87R9574 CJC-D
By: Cason H.B. No. 3000
A BILL TO BE ENTITLED
AN ACT
relating to the repeal of the franchise tax; making an
appropriation.
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 (a) Chapter 171, Tax Code, is repealed.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, 2021, is not
required to file a franchise tax report or pay a tax on the taxable
entity's taxable margin for the period ending on that date.
(c) Chapter 171, Tax Code, as that chapter existed
immediately before its repeal by this Act, 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 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. (a) Not later than December 1, 2021, the
comptroller of public accounts, in consultation with the
Legislative Budget Board, shall determine the total amount of
revenue anticipated to have been received by this state during the
state fiscal biennium ending August 31, 2023, attributable to the
tax imposed under Chapter 171, Tax Code, if that chapter were not
repealed.
(b) On January 1, 2022, the amount determined under
Subsection (a) of this section is appropriated from the economic
stabilization fund to the comptroller of public accounts for the
purpose of depositing that amount to the credit of the general
revenue fund as money available for use during the state fiscal
biennium ending August 31, 2023, to make expenditures previously
authorized by appropriations from general revenue for that state
fiscal biennium.
SECTION 3. This Act takes effect January 1, 2022, but only
if:
(1) this Act receives a vote of two-thirds of the
members present in each house of the legislature, as provided by
Section 49-g(m), Article III, Texas Constitution; and
(2) the total amount of appropriations made by the
General Appropriations Act for the state fiscal biennium ending
August 31, 2023, is at least three percent less than the total
amount of appropriations made by the General Appropriations Act for
the state fiscal biennium ending August 31, 2021.