By Burnam H.B. No. 2900
77R7335 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to 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
1-9 is 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 $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 $150,000].
1-16 SECTION 2. Section 171.203(a), Tax Code, is amended to read
1-17 as follows:
1-18 (a) A corporation on which the franchise tax is imposed[,
1-19 regardless of whether the corporation is required to pay any tax,]
1-20 shall file a report with the comptroller containing:
1-21 (1) the name of each corporation in which the
1-22 corporation filing the report owns a 10 percent or greater interest
1-23 and the percentage owned by the corporation;
1-24 (2) the name of each corporation that owns a 10
2-1 percent or greater interest in the corporation filing the report;
2-2 (3) the name, title, and mailing address of each
2-3 person who is an officer or director of the corporation on the date
2-4 the report is filed and the expiration date of each person's term
2-5 as an officer or director, if any;
2-6 (4) the name and address of the agent of the
2-7 corporation designated under Section 171.354 of this code; and
2-8 (5) the address of the corporation's principal office
2-9 and principal place of business.
2-10 SECTION 3. Section 171.204, Tax Code, is amended to read as
2-11 follows:
2-12 Sec. 171.204. Information Report. To [(a) Except as
2-13 provided by Subsection (b), to] determine eligibility for the
2-14 exemption provided by Section 171.2022, or to determine the amount
2-15 of the franchise tax or the correctness of a franchise tax report,
2-16 the comptroller may require an officer of a corporation that may be
2-17 subject to the tax imposed under this chapter to file an
2-18 information report with the comptroller stating the amount of the
2-19 corporation's taxable capital and earned surplus, or any other
2-20 information the comptroller may request.
2-21 [(b) The comptroller may require an officer of a corporation
2-22 that does not owe any tax because of the application of Section
2-23 171.002(d)(2) to file an abbreviated information report with the
2-24 comptroller stating the amount of the corporation's gross receipts
2-25 from its entire business. The comptroller may not require a
2-26 corporation described by this subsection to file an information
2-27 report that requires the corporation to report or compute its
3-1 earned surplus or taxable capital.]
3-2 SECTION 4. Subchapters O and Q, Chapter 171, Tax Code, are
3-3 repealed.
3-4 SECTION 5. (a) This Act takes effect September 1, 2002, and
3-5 applies only to a report originally due on or after that date.
3-6 (b) A corporation may not claim a credit under Subchapters O
3-7 and Q, Chapter 171, Tax Code, as repealed by this Act, for any
3-8 expenses and payments incurred or qualified investments or
3-9 expenditures made on or after the effective date of this Act.
3-10 Those subchapters are continued in effect for the sole purpose of
3-11 determining tax liability for any expenses and payments incurred or
3-12 qualified investments or expenditures made under those subchapters
3-13 before the effective date of this Act.