This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.


Amend CSHB 32 (senate committee printing) as follows:
(1)  In SECTION 2 of the bill, in amended Section 171.002(a), Tax Code (page 1, line 40), between "171.003" and "and", insert ", 171.004,".
(2)  In SECTION 2 of the bill, in amended Section 171.002(b), Tax Code (page 1, line 43), between "171.003" and "and", insert ", 171.004,".
(3)  In SECTION 3 of the bill, in amended Section 171.1016(b), Tax Code (page 1, line 54), between "(b)" and "amount", strike "The" and substitute "Subject to Section 171.004, the [The]".
(4)  Add the following appropriately numbered SECTIONS to the bill and renumber the other SECTIONS of the bill accordingly:
SECTION ____.  Subchapter A, Chapter 171, Tax Code, is amended by adding Section 171.004 to read as follows:
Sec. 171.004.  ADJUSTMENT OF TAX RATES. (a) Beginning in 2018, on January 1 of each even numbered year for which the comptroller's most recent certification estimate projects state tax collections not dedicated by the constitution will exceed the limit on appropriations in effect for the current biennium under Section 22(a), Article VIII, Texas Constitution:
(1)  the rate of the franchise tax under Section 171.002(a) is adjusted by subtracting 0.15 from the rate in effect on December 31 of the previous year;
(2)  the rate of the franchise tax under Section 171.002(b) is adjusted by subtracting 0.075 from the rate in effect on December 31 of the previous year; and
(3)  the rate of the franchise tax under Section 171.1016(b)(3) is adjusted by subtracting 0.0662 from the rate in effect on December 31 of the previous year.
(b)  The tax rates determined under Subsection (a) apply to a report originally due on or after the date the determination is made.
(c)  Notwithstanding Subsection (a), if an adjustment otherwise required by Subsection (a) would reduce a rate of the franchise tax to less than zero, the rate is instead reduced to zero.
(d)  Notwithstanding any other law, if the rates of the franchise tax are reduced to zero under Subsection (a) or (c), a taxable entity does not owe any tax and is not required to file a report that would otherwise be originally due on or after the date the rates are reduced to zero.
(e)  The comptroller shall make the determination required by Subsection (a) and may adopt rules related to making that determination. The comptroller shall publish the franchise tax rates determined under this section in the Texas Register and on the comptroller's Internet website not later than January 15 of each year.
(f)  A determination by the comptroller under this section is final and may not be appealed.
SECTION ____.  Chapter 171, Tax Code, is amended by adding Subchapter Z to read as follows:
SUBCHAPTER Z. EXPIRATION
Sec. 171.975.  EXPIRATION. This chapter expires on December 31 of the year in which the rates of the franchise tax are reduced to zero under Section 171.004(a) or (c).
SECTION ____.  (a)  Chapter 171, Tax Code, and Subtitle B, Title 2, Tax Code, continue to apply to audits, deficiencies, redeterminations, and refunds of any tax due or collected under Chapter 171 after its expiration until barred by limitations.
(b)  The expiration of Chapter 171, Tax Code, does not affect:
(1)  the status of a taxable entity that has had its corporate privileges, certificate of authority, certificate of organization, certificate of limited partnership, corporate charter, or registration revoked, suit filed against it, or a receiver appointed under Subchapter F, G, or H of that chapter;
(2)  the ability of the comptroller of public accounts, secretary of state, or attorney general to take action against a taxable entity under Subchapter F, G, or H of that chapter for actions that took place before the chapter expired; or
(3)  the right of a taxable entity to contest a forfeiture, revocation, lawsuit, or appointment of a receiver under Subchapter F, G, or H of that chapter.