By: Keough H.B. No. 321
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  A bill relating to the repeal of the franchise tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  This act may be cited as the Business Tax Relief
  Act.
         SECTION 2.  Section 1(c), Chapter 286 (H.B. 4765), Acts of
  the 81st Legislature, Regular Session, 2009, as amended by Section
  37.01, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
  Session, 2011, is repealed.
         SECTION 3.  Section 2, Chapter 286 (H.B. 4765), Acts of the
  81st Legislature, Regular Session, 2009, as amended by Section
  37.02, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
  Session, 2011, and which amended former Subsection (d), Section
  171.002, Tax Code, is repealed.
         SECTION 4.  Section 3, Chapter 286 (H.B. 4765), Acts of the
  81st Legislature, Regular Session, 2009, as amended by Section
  37.03, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
  Session, 2011, and which amended former Subsection (a), Section
  171.0021, Tax Code, is repealed.
         SECTION 5.  (a) Chapter 171, Tax Code, is repealed.
         (b)  A taxable entity that is subject to the franchise tax
  imposed under Chapter 171, Tax Code, on December 31, 2015, shall
  file a final franchise tax return and pay a transitional tax as
  required by this subsection on or before May 15, 2016. The
  transitional tax is equal to the tax the taxable entity would have
  paid in 2016 under Chapter 171, Tax Code, if Chapter 171, Tax Code,
  had not been repealed. The provisions of Chapter 171, Tax Code,
  relating to the computation and payment of the franchise tax remain
  in effect after the repeal of Chapter 171, Tax Code, by this section
  for the purposes of computing and paying the transitional tax
  required by this subsection.
         (c)  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, including
  the tax due as provided by Subsection (b) of this section, until
  barred by limitations.
         (d)  The repeal 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, 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 repeal; 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.
         (e)  This section takes effect January 1, 2017.
         SECTION 6.  Sections 171.0021 and 171.1016(d), Tax Code, are
  repealed.
         SECTION 7.  Except as otherwise provided by this Act, this
  Act applies only to a report originally due on or after the
  effective date of this Act.
         SECTION 8.  Except as otherwise provided by this Act, this
  Act takes effect January 1, 2016.