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A BILL TO BE ENTITLED
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AN ACT
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relating to the computation of taxable margin for purposes of the |
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revised franchise tax by certain taxable entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1013, Tax Code, as effective January |
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1, 2008, is amended by adding Subsection (i) to read as follows: |
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(i) Subject to Section 171.1014 and the limitation in |
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Subsection (c), a taxable entity that elects to subtract |
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compensation for the purpose of computing its taxable margin under |
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Section 171.101 may include as wages and cash compensation any |
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compensation paid to an independent contractor as reported on |
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Internal Revenue Service Form 1099, or any subsequent form with a |
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different number or designation that substantially provides the |
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same information, if the total revenue from the entire business of |
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the taxable entity is less than or equal to $2 million. |
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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. |