By Fraser                                              S.B. No. 148
         76R3838 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting certain small corporations from the franchise
 1-3     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)  A [If the amount of tax computed for a corporation is
 1-8     less than $100, the] corporation is not required to pay any tax
 1-9     [that amount] and is not considered to owe any tax for a [that]
1-10     period if:
1-11                 (1)  the amount of tax computed for the corporation is
1-12     less than $100; or
1-13                 (2)  the amount of the corporation's gross receipts:
1-14                       (A)  from its entire business under Section
1-15     171.105 is less than $200,000; and
1-16                       (B)  from its entire business under Section
1-17     171.1051, including the amount excepted under Section 171.1051(a),
1-18     is less than $200,000.
1-19           SECTION 2.  Section 171.204, Tax Code, is amended to read as
1-20     follows:
1-21           Sec. 171.204.  Information Report.               (a)  Except
1-22     as provided by Subsection (b), to [To] determine eligibility for
1-23     the exemption provided by  Section 171.2022, or to determine the
1-24     amount of the franchise tax or the correctness of a franchise tax
 2-1     report, the comptroller may require an officer of a corporation
 2-2     that may be subject to the tax imposed under this chapter to file
 2-3     an information report with the comptroller stating the amount of
 2-4     the corporation's taxable capital and earned surplus, or any other
 2-5     information the comptroller may request.
 2-6           (b)  The comptroller may not require an officer of a
 2-7     corporation that does not owe any tax because of the application of
 2-8     Section 171.002(d)(2) to file an information report.
 2-9           SECTION 3.  (a)  This Act takes effect January 1, 2000, and
2-10     applies to a report that, if the corporation required to make the
2-11     report was not exempt from that requirement, would be originally
2-12     due on or after that date.
2-13           (b)  The change in law made by this Act does not affect taxes
2-14     imposed before the effective date of this Act, and the law in
2-15     effect before that date is continued in effect for purposes of the
2-16     liability for and collection of those taxes.
2-17           SECTION 4.  The importance of this legislation and the
2-18     crowded condition of the calendars in both houses create an
2-19     emergency and an imperative public necessity that the
2-20     constitutional rule requiring bills to be read on three several
2-21     days in each house be suspended, and this rule is hereby suspended.