| 1 | 1 | | S.B. No. 3 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the amount of the total revenue exemption for the |
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| 6 | 6 | | franchise tax and the exclusion of certain taxable entities from |
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| 7 | 7 | | the requirement to file a franchise tax report. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 171.002(d), Tax Code, is amended to read |
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| 10 | 10 | | as follows: |
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| 11 | 11 | | (d) A taxable entity is not required to pay any tax and is |
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| 12 | 12 | | not considered to owe any tax for a period if: |
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| 13 | 13 | | (1) the amount of tax computed for the taxable entity |
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| 14 | 14 | | is less than $1,000; or |
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| 15 | 15 | | (2) the amount of the taxable entity's total revenue |
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| 16 | 16 | | from its entire business is less than or equal to $2.47 [$1] million |
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| 17 | 17 | | or the amount determined under Section 171.006 per 12-month period |
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| 18 | 18 | | on which margin is based. |
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| 19 | 19 | | SECTION 2. Section 171.204(b), Tax Code, is amended to read |
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| 20 | 20 | | as follows: |
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| 21 | 21 | | (b) The comptroller may not require a taxable entity that |
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| 22 | 22 | | does not owe any tax because of the application of Section |
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| 23 | 23 | | 171.002(d)(2) to file an [abbreviated] information report with the |
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| 24 | 24 | | comptroller [stating the amount of the taxable entity's total |
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| 25 | 25 | | revenue from its entire business. The comptroller may not require |
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| 26 | 26 | | a taxable entity described by this subsection to file an |
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| 27 | 27 | | information report that requires the taxable entity to report or |
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| 28 | 28 | | compute its margin]. |
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| 29 | 29 | | SECTION 3. Section 171.204(d), Tax Code, is repealed. |
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| 30 | 30 | | SECTION 4. The changes in law made by this Act apply only to |
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| 31 | 31 | | a report originally due on or after January 1, 2024. |
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| 32 | 32 | | SECTION 5. This Act takes effect only if S.B. 2 or similar |
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| 33 | 33 | | legislation of the 88th Legislature, 2nd Called Session, 2023, |
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| 34 | 34 | | relating to providing property tax relief through the public school |
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| 35 | 35 | | finance system, exemptions, limitations on appraisals and taxes, |
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| 36 | 36 | | and property tax administration becomes law in a manner described |
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| 37 | 37 | | by Section 2001.006(a)(2), Government Code. If legislation |
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| 38 | 38 | | described by this section does not become law in a manner described |
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| 39 | 39 | | by Section 2001.006(a)(2), Government Code, this Act has no effect. |
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| 40 | 40 | | SECTION 6. Except as otherwise provided by this Act, this |
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| 41 | 41 | | Act takes effect January 1, 2024. |
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| 42 | 42 | | ______________________________ ______________________________ |
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| 43 | 43 | | President of the Senate Speaker of the House |
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| 44 | 44 | | I hereby certify that S.B. No. 3 passed the Senate on |
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| 45 | 45 | | July 12, 2023, by the following vote: Yeas 31, Nays 0. |
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| 46 | 46 | | ______________________________ |
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| 47 | 47 | | Secretary of the Senate |
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| 48 | 48 | | I hereby certify that S.B. No. 3 passed the House on |
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| 49 | 49 | | July 13, 2023, by the following vote: Yeas 131, Nays 5, one |
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| 50 | 50 | | present not voting. |
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| 51 | 51 | | ______________________________ |
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| 52 | 52 | | Chief Clerk of the House |
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| 53 | 53 | | Approved: |
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| 54 | 54 | | ______________________________ |
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| 55 | 55 | | Date |
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| 56 | 56 | | ______________________________ |
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| 57 | 57 | | Governor |
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