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A BILL TO BE ENTITLED
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AN ACT
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relating to the computation of the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) Section 171.002(d), Tax Code, is amended to |
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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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(b) This section takes effect only if H.B. No. 2154, Acts of |
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the 81st Legislature, Regular Session, 2009, amends Section |
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155.0211, Tax Code, in a manner that results in an increase in the |
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revenue from the tax under that section during the state fiscal |
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biennium beginning September 1, 2009, that is attributable to that |
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change, and that Act is enacted and becomes law. If H.B. No. 2154, |
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Acts of the 81st Legislature, Regular Session, 2009, does not amend |
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Section 155.0211, Tax Code, in that manner or is not enacted or does |
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not become law, this section has no effect. |
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(c) If this section takes effect, this section expires |
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December 31, 2011. |
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(d) This section applies only to a report originally due on |
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or after the effective date of this section. |
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SECTION 2. (a) Section 171.002(d), Tax Code, is amended to |
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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 $600,000 |
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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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(b) This section takes effect January 1, 2012, if H.B. No. |
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2154, Acts of the 81st Legislature, Regular Session, 2009, amends |
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Section 155.0211, Tax Code, in a manner that results in an increase |
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in the revenue from the tax under that section during the state |
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fiscal biennium beginning September 1, 2009, that is attributable |
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to that change, and that Act is enacted and becomes law. If H.B. No. |
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2154, Acts of the 81st Legislature, Regular Session, 2009, does not |
|
amend Section 155.0211, Tax Code, in that manner or is not enacted |
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or does not become law, this section takes effect January 1, 2010. |
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(c) This section applies only to a report originally due on |
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or after the effective date of this section. |
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SECTION 3. (a) Section 171.0021(a), Tax Code, is amended to |
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read as follows: |
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(a) A taxable entity is entitled to a discount of the tax |
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imposed under this chapter that the taxable entity is required to |
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pay after determining its taxable margin under Section 171.101, |
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applying the appropriate rate of the tax under Section 171.002(a) |
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or (b), and subtracting any other allowable credits, as follows: |
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(1) [for a taxable entity for which the total revenue
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from its entire business is greater than $300,000 but less than
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$400,000, the taxable entity is entitled to a discount of 80
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percent;
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[(2)
for a taxable entity for which the total revenue
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from its entire business is equal to or greater than $400,000 but
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less than $500,000, the taxable entity is entitled to a discount of
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60 percent;
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[(3)] for a taxable entity for which the total revenue |
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from its entire business is [equal to or] greater than $600,000 |
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[$500,000] but less than $700,000, the taxable entity is entitled |
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to a discount of 40 percent; and |
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(2) [(4)] for a taxable entity for which the total |
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revenue from its entire business is equal to or greater than |
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$700,000 but less than $900,000, the taxable entity is entitled to a |
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discount of 20 percent. |
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(b) This section takes effect January 1, 2012, if H.B. No. |
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2154, Acts of the 81st Legislature, Regular Session, 2009, amends |
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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 |
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or does not become law, this section takes effect January 1, 2010. |
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(c) This section applies only to a report originally due on |
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or after the effective date of this section. |
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SECTION 4. Except as otherwise provided by this Act, this |
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Act takes effect January 1, 2010. |
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* * * * * |