By:  Marchant                                         H.B. No. 1436
       73R5323 CBH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the rates of the franchise tax.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 171.002(a), Tax Code, is amended to read
    1-5  as follows:
    1-6        (a)  The rates of the franchise tax are:
    1-7              (1)  0.30 <0.25> percent per year of privilege period
    1-8  of net taxable capital; and
    1-9              (2)  3.0 <4.5> percent of net taxable earned surplus.
   1-10        SECTION 2.  (a)  Except as provided by Subsection (b) of this
   1-11  section, this Act takes effect January 1, 1994, and applies to a
   1-12  privilege period beginning on or after that date.  The change in
   1-13  law made by this Act does not affect the obligation for or the
   1-14  payment, computation, and collection of the franchise tax for a
   1-15  period not covered by this subsection.
   1-16        (b)  This subsection takes effect September 1, 1993.  The
   1-17  comptroller may adopt rules for the computation and reporting of
   1-18  the franchise tax for a privilege period beginning on or after
   1-19  January 1, 1994.
   1-20        SECTION 3.  The importance of this legislation and the
   1-21  crowded condition of the calendars in both houses create an
   1-22  emergency and an imperative public necessity that the
   1-23  constitutional rule requiring bills to be read on three several
   1-24  days in each house be suspended, and this rule is hereby suspended.