H.B. 450 78(R)    BILL ANALYSIS


H.B. 450
By: Mowery
Ways & Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Under current law, a corporation is not required to pay a franchise tax if
the tax would be less than $100 or the corporation's gross receipts is
less than $150,000. Corporations that do not pay a franchise tax are
nevertheless protected in this state and are allowed to retain their
corporate name. 

House Bill 450 would require that a corporation pay a minimum franchise
tax of $100. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

ANALYSIS

SECTION 1.Amends Section 171.002(a), (b), and (d), Tax Code, to require a
minimum franchise tax of $100. 

SECTION 2.Amends Sec. 171.201(a), Tax Code, to make conforming changes.

SECTION 3.Amends Sec. 171.202(a) and (d), Tax Code, to make conforming
changes. 

SECTION 4.Amends Sec. 171.203(a), Tax Code, to make conforming changes.

SECTION 5.Amends Sec. 171.204, Tax Code, to make conforming changes.

SECTION 6.Amends Sec. 171.851, Tax Code, to make conforming changes.

SECTION 7. Repealer. Repeals Sec. 171.2022(b), Tax Code (Exemption From
Reporting Requirement). 

EFFECTIVE DATE

January 1, 2004.