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A BILL TO BE ENTITLED
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AN ACT
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A bill relating to the repeal of the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. This act may be cited as the Business Tax Relief |
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Act. |
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SECTION 2. 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Session, 2011, is repealed.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 3. 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171.002, Tax Code, is repealed.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 4. 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171.0021, Tax Code, is repealed.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 5. (a) Chapter 171, Tax Code, is repealed. |
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(b) A taxable entity that is subject to the franchise tax |
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imposed under Chapter 171, Tax Code, on December 31, 2015, shall |
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file a final franchise tax return and pay a transitional tax as |
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required by this subsection on or before May 15, 2016. The |
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transitional tax is equal to the tax the taxable entity would have |
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paid in 2016 under Chapter 171, Tax Code, if Chapter 171, Tax Code, |
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had not been repealed. The provisions of Chapter 171, Tax Code, |
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relating to the computation and payment of the franchise tax remain |
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in effect after the repeal of Chapter 171, Tax Code, by this section |
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for the purposes of computing and paying the transitional tax |
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required by this subsection. |
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(c) Chapter 171, Tax Code, and Subtitle B, Title 2, Tax |
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Code, continue to apply to audits, deficiencies, redeterminations, |
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and refunds of any tax due or collected under Chapter 171, including |
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the tax due as provided by Subsection (b) of this section, until |
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barred by limitations. |
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(d) The repeal of Chapter 171, Tax Code, does not affect: |
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(1) the status of a taxable entity that has had its |
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corporate privileges, certificate of authority, certificate of |
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organization, certificate of limited partnership, corporate |
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charter, or registration revoked, suit filed against it, or a |
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receiver appointed under Subchapter F, G, or H of that chapter; |
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(2) the ability of the comptroller, secretary of |
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state, or attorney general to take action against a taxable entity |
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under Subchapter F, G, or H of that chapter for actions that took |
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place before the repeal; or |
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(3) the right of a taxable entity to contest a |
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forfeiture, revocation, lawsuit, or appointment of a receiver under |
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Subchapter F, G, or H of that chapter. |
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(e) This section takes effect January 1, 2017. |
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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 applies only to a report originally due on or after the |
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effective date of this Act. |
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SECTION 8. Except as otherwise provided by this Act, this |
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Act takes effect January 1, 2016. |