|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the franchise tax liability of certain taxable entities |
|
during an initial period of operation. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended |
|
by adding Section 171.0023 to read as follows: |
|
Sec. 171.0023. TAX LIABILITY OF CERTAIN TAXABLE ENTITIES |
|
DURING INITIAL PERIOD OF OPERATION. (a) In this section, "taxable |
|
income" means: |
|
(1) for a taxable entity treated for federal income |
|
tax purposes as a corporation, the amount reportable as taxable |
|
income on line 30, Internal Revenue Service Form 1120; |
|
(2) for a taxable entity treated for federal income |
|
tax purposes as a partnership, the amount reportable as ordinary |
|
business income or loss on line 22, Internal Revenue Service Form |
|
1065; or |
|
(3) for a taxable entity other than a taxable entity |
|
treated for federal income tax purposes as a corporation or |
|
partnership, an amount determined in a manner substantially |
|
equivalent to the amount for Subdivision (1) or (2) determined by |
|
rules the comptroller shall adopt. |
|
(b) Except as provided by Subsection (c), a taxable entity |
|
chartered or organized under the laws of this state, another state, |
|
or the United States is not required to pay any tax and is not |
|
considered to owe any tax for a period if: |
|
(1) any part of the period is earlier than the third |
|
anniversary of the date the entity's charter or organization took |
|
effect; and |
|
(2) the taxable entity's taxable income for the period |
|
is zero or less. |
|
(c) Subsection (b) does not apply to a taxable entity that |
|
is a member of a combined group. |
|
(d) Section 171.1011(a) applies to a reference in this |
|
section to an Internal Revenue Service form, and Section |
|
171.1011(b) applies to a reference in this section to an amount |
|
reportable on a line number on an Internal Revenue Service form. |
|
(e) The comptroller shall adopt rules as necessary to |
|
accomplish the legislative intent prescribed by this section. |
|
SECTION 2. Section 171.204(b), Tax Code, is amended to read |
|
as follows: |
|
(b) The comptroller may require a taxable entity that does |
|
not owe any tax because of the application of Section 171.002(d)(2) |
|
to file an abbreviated information report with the comptroller |
|
stating the amount of the taxable entity's total revenue from its |
|
entire business. The comptroller may require a taxable entity that |
|
does not owe any tax because of the application of Section 171.0023 |
|
to file an abbreviated information report with the comptroller |
|
stating the amount of the taxable entity's taxable income as |
|
defined by that section. The comptroller may not require a taxable |
|
entity described by this subsection to file an information report |
|
that requires the taxable entity to report or compute its margin. |
|
SECTION 3. This Act applies only to a report originally due |
|
on or after the effective date of this Act. |
|
SECTION 4. This Act takes effect only if the constitutional |
|
amendment proposed by the 81st Legislature, Regular Session, 2009, |
|
providing that Section 24, Article VIII, Texas Constitution, does |
|
not apply to a tax imposed on certain business entities is approved |
|
by the voters. If that amendment is not approved by the voters, |
|
this Act has no effect. |
|
SECTION 5. Except as otherwise provided by this Act, this |
|
Act takes effect January 1, 2010. |