By Goolsby                                              H.B. No. 84
         76R679 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting certain small corporations from payment of
 1-3     the franchise tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 171.002(d), Tax Code, is amended to read
 1-6     as follows:
 1-7           (d)  If the amount of net taxable earned surplus [tax
 1-8     computed] for a corporation is $100,000 or less [than $100], the
 1-9     corporation is exempt from the tax imposed by this chapter [not
1-10     required to pay that amount and is not considered to owe any tax]
1-11     for that period, regardless of the amount of the corporation's net
1-12     taxable capital.
1-13           SECTION 2.  (a)  This Act takes effect January 1, 2000, and
1-14     applies to a report originally due on or after that date.
1-15           (b)  The change in law made by this Act does not affect taxes
1-16     imposed before the effective date of this Act, and the law in
1-17     effect before that date is continued in effect for purposes of the
1-18     liability for and collection of those taxes.
1-19           SECTION 3.  The importance of this legislation and the
1-20     crowded condition of the calendars in both houses create an
1-21     emergency and an imperative public necessity that the
1-22     constitutional rule requiring bills to be read on three several
1-23     days in each house be suspended, and this rule is hereby suspended.