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A BILL TO BE ENTITLED
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AN ACT
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relating to the total revenue exemption from the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.002, Tax Code, is amended by adding |
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Subsection (e) to read as follows: |
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(e) Notwithstanding Subsection (d)(2), a taxable entity is |
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not required to pay any tax and is not considered to owe any tax for |
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a period if the amount of the taxable entity's total revenue from |
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its entire business is less than $1 million for the 12-month period |
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on which margin is based. This subsection expires January 1, 2011. |
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SECTION 2. Section 171.0021, Tax Code, is amended by adding |
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Subsection (c) to read as follows: |
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(c) If both the discounts provided by this section and the |
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exemption from the tax imposed under this chapter provided by |
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Section 171.002(e) apply to a taxable entity for a period, the |
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exemption provided by Section 171.002(e) prevails. This subsection |
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expires January 1, 2011. |
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SECTION 3. This Act applies only to a report originally due |
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on or after January 1, 2010, and before January 1, 2011. |
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SECTION 4. This Act takes effect January 1, 2010. |