| |
| |
|
|
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: |
|
|
ARTICLE 1. TEMPORARY EXEMPTION INCREASE AND DISCOUNT MODIFICATIONS |
|
|
FOR SMALL BUSINESSES |
|
|
SECTION 1.01. 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 $750,000 |
|
|
[$300,000] or the amount determined under Section 171.006 per |
|
|
12-month period on which margin is based. |
|
|
SECTION 1.02. 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 $750,000 [$300,000] but |
|
|
less than $900,000 [$400,000], the taxable entity is entitled to a |
|
|
discount of 50 [80] percent; and |
|
|
(2) for a taxable entity for which the total revenue |
|
|
from its entire business is equal to or greater than $900,000 |
|
|
[$400,000] but not more than $1 million [less than $500,000], the |
|
|
taxable entity is entitled to a discount of 33 [60] percent[;
|
|
|
[(3)
for a taxable entity for which the total revenue
|
|
|
from its entire business is equal to or greater than $500,000 but
|
|
|
less than $700,000, the taxable entity is entitled to a discount of
|
|
|
40 percent; and
|
|
|
[(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]. |
|
|
SECTION 1.03. The changes in law made by this article apply |
|
|
only to a report originally due on or after the effective date of |
|
|
this Act. |
|
|
ARTICLE 2. SUNSET OF TEMPORARY INCREASE AND OTHER MODIFICATIONS |
|
|
SECTION 2.01. Effective January 1, 2012, 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 $300,000 or the |
|
|
amount determined under Section 171.006 per 12-month period on |
|
|
which margin is based. |
|
|
SECTION 2.02. Effective January 1, 2012, 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 $500,000 but |
|
|
less than $700,000, the taxable entity is entitled to a discount of |
|
|
40 percent; and |
|
|
(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. |
|
|
SECTION 2.03. The changes in law made by this article apply |
|
|
only to a report originally due on or after January 1, 2012. |
|
|
ARTICLE 3. EFFECTIVE DATE |
|
|
SECTION 3.01. Except as otherwise provided by this Act, |
|
|
this Act takes effect January 1, 2010. |