| |
| |
|
|
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 (a) Chapter 171, Tax Code, is repealed.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repealed.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. |