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A BILL TO BE ENTITLED
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AN ACT
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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. Chapter 171, Tax Code, is repealed. |
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SECTION 2. A taxable entity that is subject to the franchise |
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tax imposed under Chapter 171, Tax Code, on December 31, 2023, is |
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not required to file a franchise tax report or pay a tax on the |
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taxable entity's taxable margin for the period ending on that date. |
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SECTION 3. Chapter 171, Tax Code, as that chapter existed |
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immediately before its repeal by this Act, and Subtitle B, Title 2, |
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Tax Code, continue to apply to audits, deficiencies, |
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redeterminations, and refunds of any tax due or collected under |
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Chapter 171 until barred by limitations. |
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SECTION 4. The repeal of Chapter 171, Tax Code, does not |
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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 of public accounts, |
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secretary of state, or attorney general to take action against a |
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taxable entity under Subchapter F, G, or H of that chapter for |
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actions that took 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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SECTION 5. This Act takes effect January 1, 2024. |