74R10937 DAK-D
By Romo H.B. No. 1201
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to allowing the prepayment of the franchise tax in
1-3 quarterly installments.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 171.152(c), Tax Code, is amended to read
1-6 as follows:
1-7 (c) Payment of the full amount of the tax covering the
1-8 regular annual period or the amount of the tax covering the regular
1-9 annual period less the amount of any prepayments made under Section
1-10 171.1525 is due May 15, of each year after the beginning of the
1-11 regular annual period. However, if the first anniversary of the
1-12 date that the domestic corporation files its charter or the foreign
1-13 corporation begins doing business in Texas or is granted its
1-14 certificate of authority, whichever occurs first, is after October
1-15 3 and before January 1, the payment of the tax covering the first
1-16 regular annual period is due on the same date as the tax covering
1-17 the initial period.
1-18 SECTION 2. Subchapter D, Chapter 171, Tax Code, is amended
1-19 by adding Section 171.1525 to read as follows:
1-20 Sec. 171.1525. OPTIONAL QUARTERLY PREPAYMENTS. (a) A
1-21 corporation may elect to pay the tax covering the regular annual
1-22 period, except a regular annual period due on the same date as the
1-23 tax covering the initial and second periods, in four installments.
1-24 The first installment is due on August 15 before the beginning of
2-1 the regular annual period, and the remaining three installments are
2-2 due on the following November 15, February 15, and May 15.
2-3 (b) A corporation that elects to pay the tax in quarterly
2-4 installments shall estimate the amount of its tax liability for the
2-5 regular annual period and pay one-fourth of that amount on each of
2-6 the first three installment due dates.
2-7 (c) A corporation electing quarterly tax installment
2-8 payments shall notify the comptroller in writing on or before the
2-9 due date of the first installment and shall include the first
2-10 installment payment with the election notice.
2-11 (d) An election under this section remains in effect until
2-12 revoked by the comptroller or by the taxpayer.
2-13 SECTION 3. Sections 171.202(c) and (e), Tax Code, are
2-14 amended to read as follows:
2-15 (c) The comptroller shall grant an extension of time to a
2-16 corporation that is not required by rule to make its tax payments
2-17 by electronic funds transfer for the filing of a report required by
2-18 this section to any date on or before the next November 15, if a
2-19 corporation:
2-20 (1) requests the extension, on or before May 15, on a
2-21 form provided by the comptroller; and
2-22 (2) remits before or with the request:
2-23 (A) not less than 90 percent of the amount of
2-24 tax reported as due on the report filed on or before November 15;
2-25 or
2-26 (B) 100 percent of the tax paid in the previous
2-27 year.
3-1 (e) The comptroller shall grant an extension of time for the
3-2 filing of a report required by this section by a corporation
3-3 required by rule to make its tax payments by electronic funds
3-4 transfer to any date on or before the next August 15, if the
3-5 corporation:
3-6 (1) requests the extension, on or before May 15, on a
3-7 form provided by the comptroller; and
3-8 (2) remits before or with the request:
3-9 (A) not less than 90 percent of the amount of
3-10 tax reported as due on the report filed on or before August 15; or
3-11 (B) 100 percent of the tax paid in the previous
3-12 year.
3-13 SECTION 4. This Act takes effect January 1, 1996, and
3-14 applies only to the payment of franchise tax covering a regular
3-15 annual period that begins on or after January 1, 1997.
3-16 SECTION 5. The importance of this legislation and the
3-17 crowded condition of the calendars in both houses create an
3-18 emergency and an imperative public necessity that the
3-19 constitutional rule requiring bills to be read on three several
3-20 days in each house be suspended, and this rule is hereby suspended.