Amend CSHB 3928 (Senate committee printing) as follows:
(1) Strike SECTION 1 of the bill (page 1, lines 12-14).
(2) Strike SECTION 6 of the bill (page 4, lines 36-54) and
substitute the following:
SECTION 6. Section 171.001, Tax Code, as effective January
1, 2008, is amended by adding Subsection (c) to read as follows:
(c) The tax imposed under this section or Section 171.0011
is not imposed on an entity if, during the period on which the
report is based, the entity qualifies as a passive entity as defined
by Section 171.0003.
(3) In SECTION 8 of the bill, strike Sections 171.002(a) and
(b), Tax Code (page 4, line 69, through page 5, line 5), and
substitute the following:
(a) Subject to Sections [Section] 171.003 and 171.1016 and
except as provided by Subsection (b), the rate of the franchise tax
is one percent [per year of privilege period] of taxable margin.
(b) Subject to Sections 171.003 and 171.1016, the [The] rate
of the franchise tax is 0.5 percent [per year of privilege period]
of taxable margin for those taxable entities primarily engaged in
retail or wholesale trade.
(4) Insert an appropriately numbered SECTION to read as
follows:
SECTION __. Subchapter A, Chapter 171, Tax Code, is amended
by adding Section 171.1016 to read as follows:
Sec. 171.1016. E-Z COMPUTATION AND RATE. (a)
Notwithstanding any other provision of this chapter, a taxable
entity whose total revenue from its entire business is not more than
$10 million may elect to pay the tax imposed under this chapter in
the amount computed and at the rate provided by this section rather
than in the amount computed and at the tax rate provided by Section
171.002.
(b) The amount of the tax for which a taxable entity that
elects to pay the tax as provided by this section is liable is
computed by:
(1) determining the taxable entity's total revenue
from its entire business, as determined under Section 171.1011;
(2) apportioning the amount computed under
Subdivision (1) to this state, as provided by Section 171.106, to
determine the taxable entity's apportioned total revenue; and
(3) multiplying the amount computed under Subdivision
(2) by the rate of 0.575 percent.
(c) A taxable entity that elects to pay the tax as provided
by this section may not take a credit, deduction, or other
adjustment that is not specifically authorized by this section.
(d) Section 171.0021 applies to a taxable entity that elects
to pay the tax as provided by this section.
(e) A reference in this chapter or other law to the rate of
the franchise tax means, as appropriate, the rate under Section
171.002 or, for a taxable entity that elects to pay the tax as
provided by this section, the rate under this section.
(5) Strike SECTION 20 of the bill (page 12, lines 25-36) and
substitute the following:
SECTION 20. Section 171.103, Tax Code, as effective January
1, 2008, is amended by adding Subsections (c) and (d) to read as
follows:
(c) A taxable entity that is a combined group shall include
in a report filed under Section 171.201 or 171.202, for each member
of the combined group that does not have nexus with this state for
the purpose of taxation:
(1) the gross receipts computed under Subsection (a);
and
(2) the gross receipts computed under Subsection (a)
that are subject to taxation in another state under a throwback law
or regulation.
(d) The information required by Subsection (c) may be used
for informational purposes only. A taxable entity with gross
receipts from its entire business in the preceding taxable year of
$10 million or more forfeits the right to transact business in this
state if the taxable entity fails to report or materially
underreports the information required by Subsection (c).
(6) Strike SECTION 38 of the bill (page 19, line 43, through
page 20, line 9).
(7) Insert an appropriately numbered SECTION to read as
follows:
SECTION __. The taxation method provided by Section 171.002,
Tax Code, as amended by this Act, and the taxation method provided
by Section 171.1016, Tax Code, as added by this Act, are not
severable, and neither provision would have been enacted without
the other. If the taxation method provided by Section 171.002, Tax
Code, as amended by this Act, is held invalid, the taxation method
provided by Section 171.1016, Tax Code, as added by this Act, is
also invalid.
(8) Renumber the SECTIONS of the bill appropriately.