84R13840 BEF-D
 
  By: Bonnen of Brazoria H.B. No. 3471
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the taxable entities from which no franchise tax
  payments are due for a period.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 171.002(d), Tax Code, is amended to read
  as follows:
         (d)  A taxable entity is not required to pay any tax and is
  not considered to owe any tax for a period if:
               (1)  the amount of tax computed for the taxable entity
  is less than $1,000; [or]
               (2)  the amount of the taxable entity's total revenue
  from its entire business is less than or equal to $1 million or the
  amount determined under Section 171.006 per 12-month period on
  which margin is based; or
               (3)  the taxable entity reports a loss on its federal
  income tax return for the period on which margin is based.
         SECTION 2.  Section 171.1015(d), Tax Code, is amended to
  read as follows:
         (d)  Section 171.002(d) does not apply to an upper tier
  entity if, before the attribution of any total revenue by a lower
  tier entity to an upper tier entity under this section, the lower
  tier entity does not meet the criteria of Section 171.002(d)(1),
  [or] (d)(2), or (d)(3).
         SECTION 3.  This Act applies only to a report originally due
  on or after the effective date of this Act.
         SECTION 4.  This Act takes effect January 1, 2016.