By: Cain S.B. No. 403
A BILL TO BE ENTITLED
1-1 relating to the occupation tax imposed on attorneys.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subchapter H, Chapter 191, Tax Code, is amended
1-4 to read as follows:
1-5 SUBCHAPTER H. ATTORNEYS
1-6 Sec. 191.141. Definitions. In this subchapter:
1-7 (1) "Attorney" means a person licensed to practice law
1-8 in this state.
1-9 (2) "Tax year" means June 1 of one year through May 31
1-10 of the following year.
1-11 (3) "State bar" means the State Bar of Texas.
1-12 Sec. 191.142. Imposition and Rate of Tax. (a) A tax is
1-13 imposed on each attorney.
1-14 (b) The tax rate is $200 per year to be paid in advance.
1-15 Sec. 191.143. Time for Payment of Tax. (a) Except as
1-16 provided by Subsection (b), each attorney shall pay the tax for
1-17 each tax year on or before June 1 of the tax year.
1-18 (b) If a person is licensed to practice law after the
1-19 beginning of the tax year or resumes active status to practice law
1-20 after the beginning of the tax year, the person being licensed or
1-21 resuming active status shall pay the tax imposed by this subchapter
1-22 in proportion to the number of months for which the person will be
1-23 licensed during that tax year. If a person is licensed after the
1-24 beginning of a calendar month, the month in which the person is
2-1 licensed shall count as a month for purposes of payment of taxes
2-2 under this subsection.
2-3 Sec. 191.1431. METHOD OF COLLECTION. The supreme court
2-4 shall administer the collection of taxes under this subchapter.
2-5 Sec. 191.144. Exemptions. The tax imposed by this
2-6 subchapter does not apply to:
2-7 (1) an attorney who is 70 years of age or older; or
2-8 (2) an attorney who has assumed inactive status under
2-9 rules governing the licensing of attorneys in this state.
2-10 Sec. 191.1441. SUSPENSION AND REINSTATEMENT. (a) The
2-11 supreme court shall suspend from the practice of law a person who
2-12 does not pay, within 90 days after the date it is due, the tax
2-13 imposed by this subchapter or a penalty relating to that tax.
2-14 (b) An attorney who is suspended under Subsection (a) shall
2-15 be reinstated on payment of the tax and any interest and penalties.
2-16 Sec. 191.1442. PENALTY AND INTEREST. (a) A penalty of five
2-17 percent of the tax due shall be imposed on a person who fails to
2-18 pay the tax imposed or file a report required by this chapter when
2-19 due, and, if the person fails to file the report or pay the tax
2-20 within 30 days after the day on which the tax or report is due, an
2-21 additional five percent penalty shall be imposed.
2-22 (b) The yearly interest rate on delinquent tax imposed by
2-23 this chapter is 12 percent. Delinquent taxes draw interest
2-24 beginning 60 days from the due date.
2-25 Sec. 191.1443. RULES. The state bar, with the approval of
2-26 the supreme court, shall have the authority to adopt policies and
2-27 rules for the administration and collection of the tax imposed by
3-1 this chapter and for the exemptions from that tax and shall have
3-2 the authority to compromise interest and penalties attributable to
3-3 the tax imposed by this chapter.
3-4 Sec. 191.145. DISTRIBUTION OF TAX. The supreme court shall
3-5 forward tax received under this subchapter to the state for
3-7 (1) twenty-five <
(a) Twenty-five> percent of the
3-8 taxes < collected under this subchapter in any tax year> shall be
3-9 deposited to the credit of the foundation school fund; and< .>
3-10 (2) seventy-five < (b) Seventy-five> percent of the
3-11 taxes < collected under this subchapter in any tax year> shall be
3-12 deposited to the credit of the general revenue fund.
3-13 SECTION 2. All forms and policies adopted by the comptroller
3-14 specifically for the administration of Chapter 191, Tax Code, in
3-15 effect on the effective date of this Act remain in effect until
3-16 amended or repealed by the State Bar of Texas under authority
3-17 granted to the State Bar of Texas by a change in law made by this
3-18 Act or other law.
3-19 SECTION 3. The change in law made by this Act does not
3-20 affect tax liability accruing before the effective date of this
3-21 Act. That liability continues in effect as if this Act had not
3-22 been enacted, and the former law is continued in effect for the
3-23 collection of taxes due as of the effective date of this Act and
3-24 for enforcement of the liability for those taxes. However, as soon
3-25 as practicable on or after the effective date of this Act, the
3-26 comptroller shall transfer to the Supreme Court of Texas all unpaid
3-27 accounts and files.
4-1 SECTION 4. This Act takes effect June 1, 1995.
4-2 SECTION 5. The importance of this legislation and the
4-3 crowded condition of the calendars in both houses create an
4-4 emergency and an imperative public necessity that the
4-5 constitutional rule requiring bills to be read on three several
4-6 days in each house be suspended, and this rule is hereby suspended,
4-7 and that this Act take effect and be in force according to its
4-8 terms, and it is so enacted.
4-9 COMMITTEE AMENDMENT NO. 1
4-10 Amend S.B. 403 as follows:
4-11 On page 4, line 6, insert the following as SECTION 4 and
4-12 renumber the remaining SECTIONS accordingly:
4-13 SECTION 4. An attorney tax (Chapter 191, Tax Code)
4-14 proceeding under Sections 111.009 or 111.105, Tax Code, that is not
4-15 final on the effective date of a transfer of functions under this
4-16 Act remains under the jurisdiction of the Comptroller as if this
4-17 Act had not been enacted and the former law is continued in effect
4-18 until the proceeding is final.