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A BILL TO BE ENTITLED
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AN ACT
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relating to the rates and imposition of the state sales and |
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franchise taxes and to the allocation of certain revenue. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.051(b), Tax Code, is amended to read |
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as follows: |
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(b) The sales tax rate is 6.75 [6-1/4] percent of the sales |
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price of the taxable item sold. |
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SECTION 2. Sections 151.801(a) and (c), Tax Code, are |
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amended to read as follows: |
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(a) Except for the amounts allocated under Subsections (b) |
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and (c) and Section 151.802, all proceeds from the collection of the |
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taxes imposed by this chapter shall be deposited to the credit of |
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the general revenue fund. |
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(c) Except for the amount allocated under Section 151.802 |
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and subject [Subject] to Subsection (c-1), the proceeds from the |
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collection of the taxes imposed by this chapter on the sale, |
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storage, or use of sporting goods shall be deposited as follows: |
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(1) an amount equal to 94 percent of the proceeds shall |
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be credited to the Parks and Wildlife Department and deposited as |
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specified in the Parks and Wildlife Code; and |
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(2) an amount equal to six percent of the proceeds |
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shall be credited to the Texas Historical Commission and deposited |
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as specified in Section 442.073, Government Code. |
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SECTION 3. Subchapter M, Chapter 151, Tax Code, is amended |
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by adding Section 151.802 to read as follows: |
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Sec. 151.802. ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX |
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RELIEF FUND. All proceeds, other than the amount of the proceeds |
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allocated under Section 151.801(b), from the collection of taxes |
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imposed by this chapter attributable to the portion of the tax rate |
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in excess of 6.25 percent shall be deposited to the credit of the |
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property tax relief fund under Section 403.109, Government Code. |
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SECTION 4. Sections 171.002(a), (b), and (d), Tax Code, are |
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amended to read as follows: |
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(a) Subject to Section [Sections] 171.003 [and 171.1016] |
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and except as provided by Subsection (b), the rate of the franchise |
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tax is 0.75 [one] percent of taxable margin. |
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(b) Subject to Section [Sections] 171.003 [and 171.1016], |
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the rate of the franchise tax is 0.375 [0.5] percent of taxable |
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margin for those taxable entities primarily engaged in retail or |
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wholesale trade. |
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(d) A taxable entity is not required to pay any tax and is |
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not considered to owe any tax for a period if: |
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(1) the amount of tax computed for the taxable entity |
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is less than $1,000; or |
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(2) the amount of the taxable entity's total revenue |
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from its entire business is less than or equal to $1 million |
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[$300,000] or the amount determined under Section 171.006 per |
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12-month period on which margin is based. |
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SECTION 5. Section 171.006(b), Tax Code, is amended to read |
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as follows: |
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(b) On [Beginning in 2010, on] January 1 of each |
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even-numbered year, the amounts prescribed by Sections |
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171.002(d)(2)[, 171.0021,] and 171.1013(c) are increased or |
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decreased by an amount equal to the amount prescribed by those |
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sections on December 31 of the preceding year multiplied by the |
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percentage increase or decrease during the preceding state fiscal |
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biennium in the consumer price index and rounded to the nearest |
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$10,000. |
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SECTION 6. Section 171.101(a), Tax Code, is amended to read |
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as follows: |
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(a) The taxable margin of a taxable entity is computed by: |
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(1) determining the taxable entity's margin, which is |
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the lesser of: |
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(A) the following percentage [70 percent] of the |
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taxable entity's total revenue from its entire business, as |
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determined under Section 171.1011: |
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(i) 25 percent, if the amount of the taxable |
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entity's total revenue from its entire business is less than or |
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equal to $10 million; |
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(ii) 50 percent, if the amount of the |
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taxable entity's total revenue from its entire business is more |
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than $10 million but less than or equal to $50 million; and |
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(iii) 70 percent, if the amount of the |
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taxable entity's total revenue from its entire business is more |
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than $50 million; or |
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(B) an amount computed by: |
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(i) determining the taxable entity's total |
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revenue from its entire business, under Section 171.1011; |
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(ii) subtracting, at the election of the |
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taxable entity, either: |
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(a) cost of goods sold, as determined |
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under Section 171.1012; or |
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(b) compensation, as determined under |
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Section 171.1013; and |
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(iii) subtracting, in addition to any |
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subtractions made under Subparagraph (ii)(a) or (b), compensation, |
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as determined under Section 171.1013, paid to an individual during |
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the period the individual is serving on active duty as a member of |
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the armed forces of the United States if the individual is a |
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resident of this state at the time the individual is ordered to |
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active duty and the cost of training a replacement for the |
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individual; |
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(2) apportioning the taxable entity's margin to this |
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state as provided by Section 171.106 to determine the taxable |
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entity's apportioned margin; and |
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(3) subtracting from the amount computed under |
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Subdivision (2) any other allowable deductions to determine the |
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taxable entity's taxable margin. |
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SECTION 7. Effective January 1, 2011, Section 171.101(a), |
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Tax Code, is amended to read as follows: |
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(a) The taxable margin of a taxable entity is computed by: |
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(1) determining the taxable entity's margin, which is |
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the lesser of: |
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(A) the following percentage [70 percent] of the |
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taxable entity's total revenue from its entire business, as |
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determined under Section 171.1011: |
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(i) 25 percent, if the amount of the taxable |
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entity's total revenue from its entire business is less than or |
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equal to $10 million; and |
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(ii) 50 percent, if the amount of the |
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taxable entity's total revenue from its entire business is more |
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than $10 million; or |
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(B) an amount computed by: |
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(i) determining the taxable entity's total |
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revenue from its entire business, under Section 171.1011; |
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(ii) subtracting, at the election of the |
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taxable entity, either: |
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(a) cost of goods sold, as determined |
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under Section 171.1012; or |
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(b) compensation, as determined under |
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Section 171.1013; and |
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(iii) subtracting, in addition to any |
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subtractions made under Subparagraph (ii)(a) or (b), compensation, |
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as determined under Section 171.1013, paid to an individual during |
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the period the individual is serving on active duty as a member of |
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the armed forces of the United States if the individual is a |
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resident of this state at the time the individual is ordered to |
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active duty and the cost of training a replacement for the |
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individual; |
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(2) apportioning the taxable entity's margin to this |
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state as provided by Section 171.106 to determine the taxable |
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entity's apportioned margin; and |
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(3) subtracting from the amount computed under |
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Subdivision (2) any other allowable deductions to determine the |
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taxable entity's taxable margin. |
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SECTION 8. Sections 171.0021 and 171.1016, Tax Code, are |
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repealed. |
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SECTION 9. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 10. This Act applies only to a report originally due |
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on or after January 1, 2010. |
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SECTION 11. (a) Sections 151.051(b) and 151.801(a) and |
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(c), Tax Code, as amended by this Act, and Section 151.802, Tax |
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Code, as added by this Act, take effect October 1, 2009. |
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(b) Except as provided by Section 7 of this Act and |
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Subsection (a) of this section, this Act takes effect January 1, |
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2010. |