By Fraser S.B. No. 1065
76R6577 CBH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the application of the franchise tax to banking
1-3 corporations and savings and loan associations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 171.001(b)(1), (3), and (7), Tax Code,
1-6 are amended to read as follows:
1-7 (1) "Banking corporation" means each state, national,
1-8 domestic, or foreign bank, whether organized under the laws of this
1-9 state, another state, or another country, or under federal law,
1-10 including a limited banking association organized under Subtitle A,
1-11 Title 3, Finance Code, [as defined by Section 1.002(a), Texas
1-12 Banking Act,] and each bank organized under Section 25(a), Federal
1-13 Reserve Act (12 U.S.C. Secs. 611-631) (edge corporations), but does
1-14 not include a bank holding company as that term is defined by
1-15 Section 2, Bank Holding Company Act of 1956 (12 U.S.C. Sec. 1841).
1-16 (3) "Corporation" includes:
1-17 (A) a limited liability company, as defined
1-18 under the Texas Limited Liability Company Act;
1-19 (B) a [state or federal] savings and loan
1-20 association; and
1-21 (C) a banking corporation.
1-22 (7) "Savings and loan association" means [includes] a
1-23 [state or federal] savings and loan association or savings bank,
1-24 whether organized under the laws of this state, another state, or
2-1 another country, or under federal law.
2-2 SECTION 2. Sections 171.106(a) and (b), Tax Code, are
2-3 amended to read as follows:
2-4 (a) Except as provided by Subsections (c) and (d), a
2-5 corporation's taxable capital is apportioned to this state to
2-6 determine the amount of the tax imposed under Section 171.002(b)(1)
2-7 by multiplying the corporation's taxable capital by a fraction, the
2-8 numerator of which is the corporation's gross receipts from
2-9 business done in this state, as determined under Section 171.103
2-10 [or 171.1031, as applicable], and the denominator of which is the
2-11 corporation's gross receipts from its entire business, as
2-12 determined under Section 171.105.
2-13 (b) Except as provided by Subsections (c) and (d), a
2-14 corporation's taxable earned surplus is apportioned to this state
2-15 to determine the amount of tax imposed under Section 171.002(b)(2)
2-16 by multiplying the taxable earned surplus by a fraction, the
2-17 numerator of which is the corporation's gross receipts from
2-18 business done in this state, as determined under Section [171.1031
2-19 or] 171.1032, [as applicable,] and the denominator of which is the
2-20 corporation's gross receipts from its entire business, as
2-21 determined under Section 171.1051.
2-22 SECTION 3. Section 171.259, Tax Code, is amended to read as
2-23 follows:
2-24 Sec. 171.259. BANKING CORPORATIONS AND SAVINGS AND LOAN
2-25 ASSOCIATIONS. (a) Except as provided by Subsection (b), this
2-26 [This] subchapter does not apply to a banking corporation that is
2-27 organized under the laws of this state or under federal law and has
3-1 its main office in this state [or a savings and loan association].
3-2 (b) The banking commissioner shall appoint a conservator
3-3 under Subtitle A, Title 3, Finance Code, to pay the franchise tax
3-4 of a banking corporation that is organized under the laws of this
3-5 state and that the commissioner certifies as being delinquent in
3-6 the payment of the corporation's franchise tax.
3-7 SECTION 4. Subchapter F, Chapter 171, Tax Code, is amended
3-8 by adding Section 171.260 to read as follows:
3-9 Sec. 171.260. SAVINGS AND LOAN ASSOCIATION. (a) Except as
3-10 provided by Subsection (b), this subchapter does not apply to a
3-11 savings and loan association that is organized under the laws of
3-12 this state or under federal law and has its main office in this
3-13 state.
3-14 (b) The savings and loan commissioner shall appoint a
3-15 conservator under Subtitle B or C, Title 3, Finance Code, to pay
3-16 the franchise tax of a savings and loan corporation that is
3-17 organized under the laws of this state and that the commissioner
3-18 certifies as being delinquent in the payment of the corporation's
3-19 franchise tax.
3-20 SECTION 5. Section 171.316, Tax Code, is amended to read as
3-21 follows:
3-22 Sec. 171.316. BANKING CORPORATIONS. This subchapter does
3-23 not apply to a banking corporation that is organized under the laws
3-24 of this state or under federal law and has its main office in this
3-25 state.
3-26 SECTION 6. Section 171.317, Tax Code, is amended to read as
3-27 follows:
4-1 Sec. 171.317. SAVINGS AND LOAN ASSOCIATIONS. This [(a)
4-2 Except as prohibited by the Texas Savings and Loan Act (Article
4-3 852a, Vernon's Texas Civil Statutes), the Savings and Loan
4-4 Commissioner shall revoke the charter of a savings and loan
4-5 association that the comptroller certifies is delinquent in the
4-6 payment of the tax imposed under this chapter.]
4-7 [(b) Except as provided by Subsection (a), this] subchapter
4-8 does not apply to a savings and loan association that is organized
4-9 under the laws of this state or under federal law and has its main
4-10 office in this state.
4-11 SECTION 7. Section 171.1031, Tax Code, is repealed.
4-12 SECTION 8. This Act takes effect January 1, 2000, and
4-13 applies to a report originally due on or after that date.
4-14 SECTION 9. The importance of this legislation and the
4-15 crowded condition of the calendars in both houses create an
4-16 emergency and an imperative public necessity that the
4-17 constitutional rule requiring bills to be read on three several
4-18 days in each house be suspended, and this rule is hereby suspended.