| 1 | 1 | | 88R3300 CJD-D |
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| 2 | 2 | | By: Oliverson H.B. No. 1280 |
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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 determination of compensation and reporting |
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| 8 | 8 | | requirements for the franchise tax. |
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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. Section 171.1013, Tax Code, is amended by adding |
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| 11 | 11 | | Subsection (b-2) to read as follows: |
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| 12 | 12 | | (b-2) Notwithstanding Subsections (b) and (b-1) and subject |
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| 13 | 13 | | to Section 171.1014, a taxable entity that elects to subtract |
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| 14 | 14 | | compensation for the purpose of computing its taxable margin under |
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| 15 | 15 | | Section 171.101 may not subtract the cost of health care benefits |
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| 16 | 16 | | provided to the entity's officers, directors, owners, partners, or |
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| 17 | 17 | | employees, if: |
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| 18 | 18 | | (1) the health care benefits include coverage for |
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| 19 | 19 | | items or services that facilitate access to abortion, including |
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| 20 | 20 | | travel vouchers; or |
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| 21 | 21 | | (2) the entity provides sick leave as a benefit to the |
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| 22 | 22 | | entity's officers, directors, owners, partners, or employees for |
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| 23 | 23 | | purposes of procuring an abortion or for a recovery period |
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| 24 | 24 | | following an abortion. |
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| 25 | 25 | | SECTION 2. Section 171.201(a), Tax Code, is amended to read |
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| 26 | 26 | | as follows: |
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| 27 | 27 | | (a) Except as provided by Section 171.2022, a taxable entity |
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| 28 | 28 | | on which the franchise tax is imposed shall file an initial report |
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| 29 | 29 | | with the comptroller containing: |
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| 30 | 30 | | (1) financial information of the taxable entity |
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| 31 | 31 | | necessary to compute the tax under this chapter; |
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| 32 | 32 | | (2) the name and address of: |
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| 33 | 33 | | (A) each officer, director, and manager of the |
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| 34 | 34 | | taxable entity; |
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| 35 | 35 | | (B) for a limited partnership, each general |
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| 36 | 36 | | partner; |
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| 37 | 37 | | (C) for a general partnership or limited |
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| 38 | 38 | | liability partnership, each managing partner or, if there is not a |
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| 39 | 39 | | managing partner, each partner; or |
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| 40 | 40 | | (D) for a trust, each trustee; |
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| 41 | 41 | | (3) the name and address of the agent of the taxable |
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| 42 | 42 | | entity designated under Section 171.354; |
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| 43 | 43 | | (3-a) a certification as to whether the taxable entity |
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| 44 | 44 | | provides health care benefits that include the coverage described |
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| 45 | 45 | | by Section 171.1013(b-2) or sick leave described by that |
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| 46 | 46 | | subsection; and |
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| 47 | 47 | | (4) other information required by the comptroller. |
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| 48 | 48 | | SECTION 3. Section 171.202(a), Tax Code, is amended to read |
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| 49 | 49 | | as follows: |
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| 50 | 50 | | (a) Except as provided by Section 171.2022, a taxable entity |
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| 51 | 51 | | on which the franchise tax is imposed shall file an annual report |
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| 52 | 52 | | with the comptroller containing: |
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| 53 | 53 | | (1) financial information of the taxable entity |
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| 54 | 54 | | necessary to compute the tax under this chapter; |
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| 55 | 55 | | (2) the name and address of each officer and director |
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| 56 | 56 | | of the taxable entity; |
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| 57 | 57 | | (3) the name and address of the agent of the taxable |
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| 58 | 58 | | entity designated under Section 171.354; |
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| 59 | 59 | | (3-a) a certification as to whether the taxable entity |
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| 60 | 60 | | provides health care benefits that include the coverage described |
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| 61 | 61 | | by Section 171.1013(b-2) or sick leave described by that |
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| 62 | 62 | | subsection; and |
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| 63 | 63 | | (4) other information required by the comptroller. |
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| 64 | 64 | | SECTION 4. This Act applies only to a report originally due |
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| 65 | 65 | | on or after the effective date of this Act. |
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| 66 | 66 | | SECTION 5. This Act takes effect January 1, 2024. |
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