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A BILL TO BE ENTITLED
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AN ACT
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relating to franchise tax rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 171.002(a) and (b), Tax Code, as |
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effective January 1, 2008, are amended to read as follows: |
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(a) Subject to Section 171.003 and except as provided by |
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Subsection (b), the rate of the franchise tax is 0.5 [one] percent |
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per year of privilege period of taxable margin. |
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(b) The rate of the franchise tax is 0.25 [0.5] percent per |
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year of privilege period of taxable margin for those taxable |
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entities primarily engaged in retail or wholesale trade. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2008. |