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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise tax discount under certain circumstances. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended |
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by adding Section 171.008 to read as follows: |
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Sec. 171.008. DISCOUNT FROM TAX LIABILITY. (a) In this |
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section: |
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(1) "Biennial revenue estimate" means the estimate of |
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anticipated revenue to this state for the succeeding biennium that |
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the comptroller prepares in accordance with Section 49a(a), Article |
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III, Texas Constitution. |
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(2) "Current biennium" means the state fiscal biennium |
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in which a biennial revenue estimate is submitted to the governor |
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and legislature. |
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(3) "Succeeding biennium" means the state fiscal |
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biennium beginning after the current biennium. |
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(b) The comptroller shall determine and include with the |
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biennial revenue estimate the percentage change from the current |
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biennium to the succeeding biennium in total general |
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revenue-related funds available for certification, as shown in the |
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biennial revenue estimate for those bienniums. |
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(c) This section applies to a taxable entity's computation |
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of tax due for the reports originally due in each year of the |
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succeeding biennium only if the percentage change determined under |
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Subsection (b) is greater than five percent. Not later than January |
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15 of each year in which this section applies, the comptroller shall |
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post on the comptroller's Internet website a notice regarding this |
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section's applicability for that year. |
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(d) A taxable entity is entitled to a discount of 25 percent |
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of the tax imposed under this chapter that the taxable entity is |
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required to pay after determining its taxable margin under Section |
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171.101, applying the appropriate rate of the tax under Section |
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171.002(a) or (b), and subtracting any other allowable credits, |
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including credit carryforwards. |
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(e) Notwithstanding Section 171.1016(c), a taxable entity |
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that elects to pay the tax as provided by Section 171.1016 is |
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entitled to a discount of 25 percent of the tax calculated under |
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that section. |
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SECTION 2. 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 3. This Act takes effect January 1, 2019. |