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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. Section 171.002, Tax Code, as effective January |
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1, 2008, is amended by adding Subsection (b-1) to read as follows: |
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(b-1) Notwithstanding Subsection (a) and except as |
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otherwise provided by this subsection, the rate of the franchise |
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tax is 0.5 percent of taxable margin. Notwithstanding Subsection |
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(b), the rate of the franchise tax is 0.25 percent of taxable margin |
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for those taxable entities primarily engaged in retail or wholesale |
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trade. This subsection expires January 1, 2010. |
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SECTION 2. Section 171.003, Tax Code, as effective January |
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1, 2008, is amended by adding Subsection (d) to read as follows: |
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(d) This section does not apply to a change in a rate |
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occurring on the expiration of Section 171.002(b-1). This |
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subsection expires December 31, 2010. |
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SECTION 3. 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 4. This Act takes effect January 1, 2008. |