1-1 By: Marchant (Senate Sponsor - Fraser) H.B. No. 2067
1-2 (In the Senate - Received from the House April 22, 1999;
1-3 April 23, 1999, read first time and referred to Committee on
1-4 Finance; May 5, 1999, reported favorably by the following vote:
1-5 Yeas 9, Nays 0; May 5, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the application of the franchise tax to banking
1-9 corporations and savings and loan associations.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Sections 171.001(b)(1), (3), and (7), Tax Code,
1-12 are amended to read as follows:
1-13 (1) "Banking corporation" means each state, national,
1-14 domestic, or foreign bank, whether organized under the laws of this
1-15 state, another state, or another country, or under federal law,
1-16 including a limited banking association organized under Subtitle A,
1-17 Title 3, Finance Code, [as defined by Section 1.002(a), Texas
1-18 Banking Act,] and each bank organized under Section 25(a), Federal
1-19 Reserve Act (12 U.S.C. Secs. 611-631) (edge corporations), but does
1-20 not include a bank holding company as that term is defined by
1-21 Section 2, Bank Holding Company Act of 1956 (12 U.S.C. Sec. 1841).
1-22 (3) "Corporation" includes:
1-23 (A) a limited liability company, as defined
1-24 under the Texas Limited Liability Company Act;
1-25 (B) a [state or federal] savings and loan
1-26 association; and
1-27 (C) a banking corporation.
1-28 (7) "Savings and loan association" means [includes] a
1-29 [state or federal] savings and loan association or savings bank,
1-30 whether organized under the laws of this state, another state, or
1-31 another country, or under federal law.
1-32 SECTION 2. Sections 171.106(a) and (b), Tax Code, are
1-33 amended to read as follows:
1-34 (a) Except as provided by Subsections (c) and (d), a
1-35 corporation's taxable capital is apportioned to this state to
1-36 determine the amount of the tax imposed under Section 171.002(b)(1)
1-37 by multiplying the corporation's taxable capital by a fraction, the
1-38 numerator of which is the corporation's gross receipts from
1-39 business done in this state, as determined under Section 171.103
1-40 [or 171.1031, as applicable], and the denominator of which is the
1-41 corporation's gross receipts from its entire business, as
1-42 determined under Section 171.105.
1-43 (b) Except as provided by Subsections (c) and (d), a
1-44 corporation's taxable earned surplus is apportioned to this state
1-45 to determine the amount of tax imposed under Section 171.002(b)(2)
1-46 by multiplying the taxable earned surplus by a fraction, the
1-47 numerator of which is the corporation's gross receipts from
1-48 business done in this state, as determined under Section [171.1031
1-49 or] 171.1032, [as applicable,] and the denominator of which is the
1-50 corporation's gross receipts from its entire business, as
1-51 determined under Section 171.1051.
1-52 SECTION 3. Section 171.259, Tax Code, is amended to read as
1-53 follows:
1-54 Sec. 171.259. BANKING CORPORATIONS AND SAVINGS AND LOAN
1-55 ASSOCIATIONS. (a) Except as provided by Subsection (b), this
1-56 [This] subchapter does not apply to a banking corporation that is
1-57 organized under the laws of this state or under federal law and has
1-58 its main office in this state [or a savings and loan association].
1-59 (b) The banking commissioner shall appoint a conservator
1-60 under Subtitle A, Title 3, Finance Code, to pay the franchise tax
1-61 of a banking corporation that is organized under the laws of this
1-62 state and that the commissioner certifies as being delinquent in
1-63 the payment of the corporation's franchise tax.
1-64 SECTION 4. Subchapter F, Chapter 171, Tax Code, is amended
2-1 by adding Section 171.260 to read as follows:
2-2 Sec. 171.260. SAVINGS AND LOAN ASSOCIATION. (a) Except as
2-3 provided by Subsection (b), this subchapter does not apply to a
2-4 savings and loan association that is organized under the laws of
2-5 this state or under federal law and has its main office in this
2-6 state.
2-7 (b) The savings and loan commissioner shall appoint a
2-8 conservator under Subtitle B or C, Title 3, Finance Code, to pay
2-9 the franchise tax of a savings and loan corporation that is
2-10 organized under the laws of this state and that the commissioner
2-11 certifies as being delinquent in the payment of the corporation's
2-12 franchise tax.
2-13 SECTION 5. Section 171.316, Tax Code, is amended to read as
2-14 follows:
2-15 Sec. 171.316. BANKING CORPORATIONS. This subchapter does
2-16 not apply to a banking corporation that is organized under the laws
2-17 of this state or under federal law and has its main office in this
2-18 state.
2-19 SECTION 6. Section 171.317, Tax Code, is amended to read as
2-20 follows:
2-21 Sec. 171.317. SAVINGS AND LOAN ASSOCIATIONS. This [(a)
2-22 Except as prohibited by the Texas Savings and Loan Act (Article
2-23 852a, Vernon's Texas Civil Statutes), the Savings and Loan
2-24 Commissioner shall revoke the charter of a savings and loan
2-25 association that the comptroller certifies is delinquent in the
2-26 payment of the tax imposed under this chapter.]
2-27 [(b) Except as provided by Subsection (a), this] subchapter
2-28 does not apply to a savings and loan association that is organized
2-29 under the laws of this state or under federal law and has its main
2-30 office in this state.
2-31 SECTION 7. Section 171.1031, Tax Code, is repealed.
2-32 SECTION 8. This Act takes effect January 1, 2000, and
2-33 applies to a report originally due on or after that date.
2-34 SECTION 9. The importance of this legislation and the
2-35 crowded condition of the calendars in both houses create an
2-36 emergency and an imperative public necessity that the
2-37 constitutional rule requiring bills to be read on three several
2-38 days in each house be suspended, and this rule is hereby suspended.
2-39 * * * * *