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.