By: Oliveira, et al. (Senate Sponsor - Patrick) H.B. No. 4765
         (In the Senate - Received from the House May 6, 2009;
  May 7, 2009, read first time and referred to Committee on Finance;
  May 26, 2009, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 13, Nays 0, 1 present not
  voting; May 26, 2009, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 4765 By:  Williams
 
 
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.  (a)  Section 171.002(d), Tax Code, is amended to
  read as follows:
         (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 $1 million
  [$300,000] or the amount determined under Section 171.006 per
  12-month period on which margin is based.
         (b)  This section takes effect only if H.B. No. 2154, Acts of
  the 81st Legislature, Regular Session, 2009, amends Section
  155.0211, Tax Code, in a manner that results in an increase in the
  revenue from the tax under that section during the state fiscal
  biennium beginning September 1, 2009, that is attributable to that
  change, and that Act is enacted and becomes law. If H.B. No. 2154,
  Acts of the 81st Legislature, Regular Session, 2009, does not amend
  Section 155.0211, Tax Code, in that manner or is not enacted or does
  not become law, this section has no effect.
         (c)  If this section takes effect, this section expires
  December 31, 2011.
         (d)  This section applies only to a report originally due on
  or after the effective date of this section.
         SECTION 2.  (a)  Section 171.002(d), Tax Code, is amended to
  read as follows:
         (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 $600,000 
  [$300,000] or the amount determined under Section 171.006 per
  12-month period on which margin is based.
         (b)  This section takes effect January 1, 2012, if H.B. No.
  2154, Acts of the 81st Legislature, Regular Session, 2009, amends
  Section 155.0211, Tax Code, in a manner that results in an increase
  in the revenue from the tax under that section during the state
  fiscal biennium beginning September 1, 2009, that is attributable
  to that change, and that Act is enacted and becomes law. If H.B. No.
  2154, Acts of the 81st Legislature, Regular Session, 2009, does not
  amend Section 155.0211, Tax Code, in that manner or is not enacted
  or does not become law, this section takes effect January 1, 2010.
         (c)  This section applies only to a report originally due on
  or after the effective date of this section.
         SECTION 3.  (a)  Section 171.0021(a), Tax Code, is amended to
  read as follows:
         (a)  A taxable entity is entitled to a discount of the tax
  imposed under this chapter that the taxable entity is required to
  pay after determining its taxable margin under Section 171.101,
  applying the appropriate rate of the tax under Section 171.002(a)
  or (b), and subtracting any other allowable credits, as follows:
               (1)  [for a taxable entity for which the total revenue
  from its entire business is greater than $300,000 but less than
  $400,000, the taxable entity is entitled to a discount of 80
  percent;
               [(2)     for a taxable entity for which the total revenue
  from its entire business is equal to or greater than $400,000 but
  less than $500,000, the taxable entity is entitled to a discount of
  60 percent;
               [(3)]  for a taxable entity for which the total revenue
  from its entire business is [equal to or] greater than $600,000
  [$500,000] but less than $700,000, the taxable entity is entitled
  to a discount of 40 percent; and
               (2) [(4)]  for a taxable entity for which the total
  revenue from its entire business is equal to or greater than
  $700,000 but less than $900,000, the taxable entity is entitled to a
  discount of 20 percent.
         (b)  This section takes effect January 1, 2012, if H.B. No.
  2154, Acts of the 81st Legislature, Regular Session, 2009, amends
  Section 155.0211, Tax Code, in a manner that results in an increase
  in the revenue from the tax under that section during the state
  fiscal biennium beginning September 1, 2009, that is attributable
  to that change, and that Act is enacted and becomes law. If H.B. No.
  2154, Acts of the 81st Legislature, Regular Session, 2009, does not
  amend Section 155.0211, Tax Code, in that manner or is not enacted
  or does not become law, this section takes effect January 1, 2010.
         (c)  This section applies only to a report originally due on
  or after the effective date of this section.
         SECTION 4.  Except as otherwise provided by this Act, this
  Act takes effect January 1, 2010.
 
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