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A BILL TO BE ENTITLED
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AN ACT
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relating to the $1 million total revenue exemption for the |
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franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1(c), Chapter 286 (H.B. 4765), Acts of |
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the 81st Legislature, Regular Session, 2009, as amended by Section |
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37.01, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called |
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Session, 2011, is repealed. |
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SECTION 2. Section 2, Chapter 286 (H.B. 4765), Acts of the |
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81st Legislature, Regular Session, 2009, as amended by Section |
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37.02, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called |
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Session, 2011, and which amended former Subsection (d), Section |
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171.002, Tax Code, is repealed. |
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SECTION 3. Section 3, Chapter 286 (H.B. 4765), Acts of the |
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81st Legislature, Regular Session, 2009, as amended by Section |
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37.03, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called |
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Session, 2011, and which amended former Subsection (a), Section |
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171.0021, Tax Code, is repealed. |
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SECTION 4. (a) Effective January 1, 2016, Section |
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171.002(d), Tax Code, as amended by Section 1(a), Chapter 286 (H.B. |
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4765), Acts of the 81st Legislature, Regular Session, 2009, is |
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amended to 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 $5 [$1] million or |
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the amount determined under Section 171.006 per 12-month period on |
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which margin is based. |
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(b) Effective January 1, 2018, Section 171.002(d), Tax |
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Code, as amended by Section 1(a), Chapter 286 (H.B. 4765), Acts of |
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the 81st Legislature, Regular Session, 2009, is amended to read as |
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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 $10 [$1] million |
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or the amount determined under Section 171.006 per 12-month period |
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on which margin is based. |
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(c) Effective January 1, 2020, Section 171.002(d), Tax |
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Code, as amended by Section 1(a), Chapter 286 (H.B. 4765), Acts of |
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the 81st Legislature, Regular Session, 2009, is amended to read as |
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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 $15 [$1] million |
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or the amount determined under Section 171.006 per 12-month period |
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on which margin is based. |
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(d) Effective January 1, 2022, Section 171.002(d), Tax |
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Code, as amended by Section 1(a), Chapter 286 (H.B. 4765), Acts of |
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the 81st Legislature, Regular Session, 2009, is amended to read as |
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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 $20 [$1] million |
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or the amount determined under Section 171.006 per 12-month period |
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on which margin is based. |
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(e) This section applies only to a report originally due on |
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or after January 1, 2016. |
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SECTION 5. Section 171.006(b), Tax Code, is amended to read |
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as follows: |
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(b) Beginning in 2010, on January 1 of each even-numbered |
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year, the amounts prescribed by Sections 171.002(d)(2)[,
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171.0021,] and 171.1013(c) are increased or decreased by an amount |
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equal to the amount prescribed by those sections on December 31 of |
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the preceding year multiplied by the percentage increase or |
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decrease during the preceding state fiscal biennium in the consumer |
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price index and rounded to the nearest $10,000. |
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SECTION 6. Sections 171.0021 and 171.1016(d), Tax Code, are |
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repealed. |
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SECTION 7. Except as otherwise provided by this Act, this |
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Act takes effect immediately if it receives a vote of two-thirds of |
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all the members elected to each house, as provided by Section 39, |
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Article III, Texas Constitution. If this Act does not receive the |
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vote necessary for immediate effect, this Act takes effect |
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September 1, 2013. |