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A BILL TO BE ENTITLED
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AN ACT
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relating to franchise tax payments and reports. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.152(c), Tax Code, is amended to read |
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as follows: |
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(c) Payment of the tax covering the regular annual period is |
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due May 15 [,] of each year after the beginning of the regular |
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annual period unless the taxable entity receives an extension under |
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Section 171.202(c), in which case payment of the tax is due November |
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15 of that year. However, if the first anniversary of the taxable |
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entity's beginning date is after October 3 and before January 1, the |
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payment of the tax covering the first regular annual period is due |
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on the same date as the tax covering the initial period. |
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SECTION 2. Section 171.202(c), Tax Code, is amended to read |
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as follows: |
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(c) The comptroller shall grant an extension of time to a |
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taxable entity [that is not required by rule to make its tax
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payments by electronic funds transfer] for the filing of a report |
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required by this section to any date on or before the next November |
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15, if a taxable entity: |
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(1) requests the extension, on or before May 15, on a |
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form provided by the comptroller; and |
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(2) remits with the request interest on the amount of |
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tax reported as due on or before November 15 at the interest rate |
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prescribed by Section 111.060[:
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[(A)
not less than 90 percent of the amount of tax
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reported as due on the report filed on or before November 15; or
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[(B)
100 percent of the tax reported as due for
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the previous calendar year on the report due in the previous
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calendar year and filed on or before May 14]. |
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SECTION 3. Section 171.362, Tax Code, is amended by |
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amending Subsection (d) and adding Subsection (g) to read as |
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follows: |
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(d) If a taxable entity required [electing] to remit |
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interest under Section 171.202(c)(2) [171.202(c)(2)(A)] remits |
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less than the amount required, the penalties imposed by this |
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chapter [section] and the interest imposed under Section 111.060 |
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are assessed against the difference between the amount required to |
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be remitted under Section 171.202(c)(2) [171.202(c)(2)(A)] and the |
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amount actually remitted on or before May 15. |
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(g) For purposes of this section, a payment made by |
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electronic funds transfer is considered to be made on the date the |
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electronic funds transfer is initiated by the taxpayer if: |
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(1) the electronic funds transfer is initiated not |
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later than the last day the payment may be timely made; and |
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(2) the comptroller receives the money not later than |
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the second business day after the last day the payment may be timely |
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made. |
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SECTION 4. Sections 171.202(d), (e), (f), (h), and (i), Tax |
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Code, are repealed. |
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SECTION 5. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 6. Section 171.362(g), Tax Code, as added by this |
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Act, applies only to a payment initiated on or after the effective |
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date of this Act. A payment initiated before the effective date of |
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this Act is governed by the law in effect on the date the payment was |
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initiated, and the former law is continued in effect for that |
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purpose. |
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SECTION 7. This Act takes effect January 1, 2016. |