By Davis of Harris                                    H.B. No. 1602
         77R6016 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting certain corporations from the franchise tax.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 171.002(d), Tax Code, is amended to read
 1-5     as follows:
 1-6           (d)  A corporation is not required to pay any tax and is not
 1-7     considered to owe any tax for a period if:
 1-8                 (1)  the amount of tax computed for the corporation is
 1-9     less than $100; or
1-10                 (2)  the amount of the corporation's gross receipts:
1-11                       (A)  from its entire business under Section
1-12     171.105 is less than $1 million [$150,000]; and
1-13                       (B)  from its entire business under Section
1-14     171.1051, including the amount excepted under Section 171.1051(a),
1-15     is less than $1 million [$150,000].
1-16           SECTION 2.  This Act takes effect January 1, 2002, and
1-17     applies only to a report originally due on or after that date.