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A BILL TO BE ENTITLED
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AN ACT
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relating to the total revenue exemption for the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. TEMPORARY EXEMPTION INCREASE. Section |
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171.002(d), Tax Code, is amended to read as follows: |
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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 2. SUNSET OF TEMPORARY INCREASE. Effective January |
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1, 2012, Section 171.002(d), Tax Code, is amended to read as |
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follows: |
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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 $300,000 or the |
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amount determined under Section 171.006 per 12-month period on |
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which margin is based. |
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SECTION 3. TRANSITION. (a) Section 171.002(d), Tax Code, |
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as amended by Section 1 of this Act, applies only to a report |
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originally due on or after the effective date of this Act. |
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(b) Section 171.002(d), Tax Code, as amended by Section 2 of |
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this Act, applies only to a report originally due on or after |
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January 1, 2012. |
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SECTION 4. EFFECTIVE DATE. This Act takes effect January 1, |
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2010. |