1-1 By: Cain S.B. No. 403
1-2 (In the Senate - Filed February 13, 1995; February 14, 1995,
1-3 read first time and referred to Committee on Finance;
1-4 March 2, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 12, Nays 0; March 2, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 403 By: Moncrief
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the occupation tax imposed on attorneys.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subchapter H, Chapter 191, Tax Code, is amended
1-13 to read as follows:
1-14 SUBCHAPTER H. ATTORNEYS
1-15 Sec. 191.141. Definitions. In this subchapter:
1-16 (1) "Attorney" means a person licensed to practice law
1-17 in this state.
1-18 (2) "Tax year" means June 1 of one year through May 31
1-19 of the following year.
1-20 (3) "State bar" means the State Bar of Texas, acting
1-21 as the administrative arm for the Supreme Court of Texas.
1-22 Sec. 191.142. Imposition and Rate of Tax. (a) A tax is
1-23 imposed on each attorney.
1-24 (b) The tax rate is $200 per year to be paid in advance.
1-25 Sec. 191.143. Time for Payment of Tax. (a) Except as
1-26 provided by Subsection (b), each attorney shall pay the tax for
1-27 each tax year on or before June 1 of the tax year.
1-28 (b) If a person is licensed to practice law after the
1-29 beginning of the tax year or resumes active status to practice law
1-30 after the beginning of the tax year, the person being licensed or
1-31 resuming active status shall pay the tax imposed by this subchapter
1-32 in proportion to the number of months for which the person will be
1-33 licensed during that tax year. If a person is licensed after the
1-34 beginning of a calendar month, the month in which the person is
1-35 licensed shall count as a month for purposes of payment of taxes
1-36 under this subsection.
1-37 Sec. 191.1431. METHOD OF COLLECTION. The supreme court,
1-38 through its administrative arm, the state bar, shall administer the
1-39 collection of taxes under this subchapter.
1-40 Sec. 191.144. Exemptions. The tax imposed by this
1-41 subchapter does not apply to:
1-42 (1) an attorney who is 70 years of age or older; or
1-43 (2) an attorney who has assumed inactive status under
1-44 rules governing the licensing of attorneys in this state.
1-45 Sec. 191.1441. SUSPENSION AND REINSTATEMENT. (a) The
1-46 supreme court shall suspend from the practice of law a person who
1-47 does not pay, within 90 days after the date it is due, the tax
1-48 imposed by this subchapter or a penalty relating to that tax.
1-49 (b) An attorney who is suspended under Subsection (a) shall
1-50 be reinstated on payment of the tax and any interest and penalties.
1-51 Sec. 191.1442. PENALTY AND INTEREST. (a) A penalty of five
1-52 percent of the tax due shall be imposed on a person who fails to
1-53 pay the tax imposed or file a report required by this chapter when
1-54 due, and, if the person fails to file the report or pay the tax
1-55 within 30 days after the day on which the tax or report is due, an
1-56 additional five percent penalty shall be imposed.
1-57 (b) The yearly interest rate on delinquent tax imposed by
1-58 this chapter is 12 percent. Delinquent taxes draw interest
1-59 beginning 60 days from the due date.
1-60 (c) The state bar may settle a claim for penalty or interest
1-61 imposed under this section if the attorney exercised reasonable
1-62 diligence to comply with the provisions of this subchapter.
1-63 Sec. 191.1443. RULES. The state bar, with the approval of
1-64 the supreme court, shall have the authority to adopt policies and
1-65 rules for the administration and collection of and for exemptions
1-66 from the tax imposed by this chapter.
1-67 Sec. 191.145. DISTRIBUTION OF TAX. The state bar shall
1-68 forward tax received under this subchapter to the state for deposit
2-1 as follows:
2-2 (1) 25 <(a) Twenty-five> percent of the taxes
2-3 <collected under this subchapter in any tax year> shall be
2-4 deposited to the credit of the foundation school fund; and<.>
2-5 (2) 75 <(b) Seventy-five> percent of the taxes
2-6 <collected under this subchapter in any tax year> shall be
2-7 deposited to the credit of the general revenue fund.
2-8 SECTION 2. All forms and policies adopted by the comptroller
2-9 specifically for the administration of Chapter 191, Tax Code, in
2-10 effect on the effective date of this Act remain in effect until
2-11 amended or repealed by the State Bar of Texas under authority
2-12 granted to the State Bar of Texas by a change in law made by this
2-13 Act or other law.
2-14 SECTION 3. The change in law made by this Act does not
2-15 affect tax liability accruing before the effective date of this
2-16 Act. That liability continues in effect as if this Act had not
2-17 been enacted, and the former law is continued in effect for the
2-18 collection of taxes due as of the effective date of this Act and
2-19 for enforcement of the liability for those taxes. However, as soon
2-20 as practicable on or after the effective date of this Act, the
2-21 comptroller shall transfer to the State Bar of Texas all unpaid
2-22 accounts and files.
2-23 SECTION 4. This Act takes effect June 1, 1995.
2-24 SECTION 5. The importance of this legislation and the
2-25 crowded condition of the calendars in both houses create an
2-26 emergency and an imperative public necessity that the
2-27 constitutional rule requiring bills to be read on three several
2-28 days in each house be suspended, and this rule is hereby suspended,
2-29 and that this Act take effect and be in force according to its
2-30 terms, and it is so enacted.
2-31 * * * * *