| |
| |
|
|
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. 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. |
|
|
SECTION 2. 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 $1 million [$300,000] but |
|
|
less than $1.1 million [$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 $1.1 million |
|
|
[$400,000] but less than $1.2 million [$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 $1.2 million |
|
|
[$500,000] but less than $1.35 million [$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 $1.35 million |
|
|
[$700,000] but less than $1.5 million [$900,000], the taxable |
|
|
entity is entitled to a discount of 20 percent. |
|
|
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 January 1, 2010. |