| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the computation of the franchise tax. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Sections 171.002(a), (b), and (d), Tax Code, are |
|
|
amended to read as follows: |
|
|
(a) Subject to Sections 171.003 and 171.1016 and except as |
|
|
provided by Subsection (b), the rate of the franchise tax is: |
|
|
(1) for taxable margin of $1 million or less, zero; |
|
|
(2) for taxable margin that exceeds $1 million but |
|
|
does not exceed $10 million, 0.5 percent of the taxable margin that |
|
|
exceeds $1 million; and |
|
|
(3) for taxable margin that exceeds $10 million, |
|
|
$45,000 plus one percent of the taxable margin that exceeds $10 |
|
|
million. |
|
|
(b) Subject to Sections 171.003 and 171.1016, for those |
|
|
taxable entities primarily engaged in retail or wholesale trade, |
|
|
the rate of the franchise tax is: |
|
|
(1) for taxable margin of $1 million or less, zero; |
|
|
(2) for taxable margin that exceeds $1 million but |
|
|
does not exceed $10 million, 0.25 percent of the taxable margin that |
|
|
exceeds $1 million; and |
|
|
(3) for taxable margin that exceeds $10 million, |
|
|
$22,500 plus 0.5 percent of the taxable margin that exceeds $10 |
|
|
million [for those taxable entities primarily engaged in retail or
|
|
|
wholesale trade]. |
|
|
(d) A taxable entity is not required to pay any tax and is |
|
|
not considered to owe any tax for a period if [:
|
|
|
[(1)] the amount of tax computed for the taxable entity |
|
|
is less than $1,000[; or
|
|
|
[(2)
the amount of the taxable entity's total revenue
|
|
|
from its entire business is less than or equal to $300,000 or the
|
|
|
amount determined under Section 171.006 per 12-month period on
|
|
|
which margin is based]. |
|
|
SECTION 2. The heading to Section 171.006, Tax Code, is |
|
|
amended to read as follows: |
|
|
Sec. 171.006. ADJUSTMENT OF ELIGIBILITY FOR [NO TAX DUE,
|
|
|
DISCOUNTS, AND] COMPENSATION DEDUCTION. |
|
|
SECTION 3. Section 171.006(b), Tax Code, is amended to read |
|
|
as follows: |
|
|
(b) On [Beginning in 2010, on] January 1 of each |
|
|
even-numbered year, the amount [amounts] prescribed by Section |
|
|
[Sections 171.002(d)(2), 171.0021, and] 171.1013(c) is [are] |
|
|
increased or decreased by an amount equal to the amount prescribed |
|
|
by that section [those sections] on December 31 of the preceding |
|
|
year multiplied by the percentage increase or decrease during the |
|
|
preceding state fiscal biennium in the consumer price index and |
|
|
rounded to the nearest $10,000. |
|
|
SECTION 4. Section 171.1015(d), Tax Code, is amended to |
|
|
read as follows: |
|
|
(d) Section 171.002(d) does not apply to an upper tier |
|
|
entity if, before the attribution of any total revenue by a lower |
|
|
tier entity to an upper tier entity under this section, the lower |
|
|
tier entity does not meet the criteria of Section 171.002(d) |
|
|
[171.002(d)(1) or (d)(2)]. |
|
|
SECTION 5. Sections 171.0021, 171.1016(d), and 171.204(b), |
|
|
Tax Code, are repealed. |
|
|
SECTION 6. This Act applies only to a report originally due |
|
|
on or after the effective date of this Act. |
|
|
SECTION 7. This Act takes effect January 1, 2010. |