By Sadler                                             H.B. No. 1050
         76R2187 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting certain small corporations from the
 1-3     franchise tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 171, Tax Code, is amended
 1-6     by adding Section 171.054 to read as follows:
 1-7           Sec. 171.054.  EXEMPTION--SMALL CORPORATIONS.  A corporation
 1-8     whose total gross receipts from the corporation's entire business
 1-9     are 100,000 or less is exempted from the franchise tax.
1-10           SECTION 2.  (a)  This Act takes effect January 1, 2000, and
1-11     applies only to gross receipts that, if not exempted from the
1-12     franchise tax, would be reported on a report originally due on or
1-13     after that date.
1-14           (b)  The change in law made by this Act does not affect taxes
1-15     imposed before the effective date of this Act, and the law in
1-16     effect before that date is continued in effect for purposes of the
1-17     liability for and collection of those taxes.
1-18           SECTION 3.  The importance of this legislation and the
1-19     crowded condition of the calendars in both houses create an
1-20     emergency and an imperative public necessity that the
1-21     constitutional rule requiring bills to be read on three several
1-22     days in each house be suspended, and this rule is hereby suspended.