1-1     By:  Fraser, Bernsen, Nelson                           S.B. No. 148
 1-2           (In the Senate - Filed January 13, 1999; January 28, 1999,
 1-3     read first time and referred to Committee on Finance;
 1-4     February 22, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 11, Nays 0;
 1-6     February 22, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 148                   By:  Fraser
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to exempting certain small corporations from the franchise
1-11     tax.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subsection (d), Section 171.002, Tax Code, is
1-14     amended to read as follows:
1-15           (d)  A [If the amount of tax computed for a corporation is
1-16     less than $100, the] corporation is not required to pay any tax
1-17     [that amount] and is not considered to owe any tax for a [that]
1-18     period if:
1-19                 (1)  the amount of tax computed for the corporation is
1-20     less than $100; or
1-21                 (2)  the amount of the corporation's gross receipts:
1-22                       (A)  from its entire business under Section
1-23     171.105 is less than $100,000; and
1-24                       (B)  from its entire business under Section
1-25     171.1051, including the amount excepted under Section 171.1051(a),
1-26     is less than $100,000.
1-27           SECTION 2.  Section 171.204, Tax Code, is amended to read as
1-28     follows:
1-29           Sec. 171.204.  Information Report.  (a)  Except as provided
1-30     by Subsection (b), to [To] determine eligibility for the exemption
1-31     provided by Section 171.2022, or to determine the amount of the
1-32     franchise tax or the correctness of a franchise tax report, the
1-33     comptroller may require an officer of a corporation that may be
1-34     subject to the tax imposed under this chapter to file an
1-35     information report with the comptroller stating the amount of the
1-36     corporation's taxable capital and earned surplus, or any other
1-37     information the comptroller may request.
1-38           (b)  The comptroller may not require an officer of a
1-39     corporation that does not owe any tax because of the application of
1-40     Section 171.002(d)(2) to file an information report.
1-41           SECTION 3.  (a)  This Act takes effect January 1, 2000, and
1-42     applies to a report that, if the corporation required to make the
1-43     report was not exempt from that requirement, would be originally
1-44     due on or after that date.
1-45           (b)  The change in law made by this Act does not affect taxes
1-46     imposed before the effective date of this Act, and the law in
1-47     effect before that date is continued in effect for purposes of the
1-48     liability for and collection of those taxes.
1-49           SECTION 4.  The importance of this legislation and the
1-50     crowded condition of the calendars in both houses create an
1-51     emergency and an imperative public necessity that the
1-52     constitutional rule requiring bills to be read on three several
1-53     days in each house be suspended, and this rule is hereby suspended.
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