S.B. No. 3
AN ACT
relating to the amount of the total revenue exemption for the
franchise tax and the exclusion of certain taxable entities from
the requirement to file a franchise tax report.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.002(d), Tax Code, is amended to read
as follows:
(d) A taxable entity is not required to pay any tax and is
not considered to owe any tax for a period if:
(1) the amount of tax computed for the taxable entity
is less than $1,000; or
(2) the amount of the taxable entity's total revenue
from its entire business is less than or equal to $2.47 [$1] million
or the amount determined under Section 171.006 per 12-month period
on which margin is based.
SECTION 2. Section 171.204(b), Tax Code, is amended to read
as follows:
(b) The comptroller may not require a taxable entity that
does not owe any tax because of the application of Section
171.002(d)(2) to file an [abbreviated] information report with the
comptroller [stating the amount of the taxable entity's total
revenue from its entire business. The comptroller may not require
a taxable entity described by this subsection to file an
information report that requires the taxable entity to report or
compute its margin].
SECTION 3. Section 171.204(d), Tax Code, is repealed.
SECTION 4. The changes in law made by this Act apply only to
a report originally due on or after January 1, 2024.
SECTION 5. This Act takes effect only if S.B. 2 or similar
legislation of the 88th Legislature, 2nd Called Session, 2023,
relating to providing property tax relief through the public school
finance system, exemptions, limitations on appraisals and taxes,
and property tax administration becomes law in a manner described
by Section 2001.006(a)(2), Government Code. If legislation
described by this section does not become law in a manner described
by Section 2001.006(a)(2), Government Code, this Act has no effect.
SECTION 6. Except as otherwise provided by this Act, this
Act takes effect January 1, 2024.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 3 passed the Senate on
July 12, 2023, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 3 passed the House on
July 13, 2023, by the following vote: Yeas 131, Nays 5, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor