Bill Text: TX HB2213 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to lowering the rates of and repealing the franchise tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-09 - Referred to Ways & Means [HB2213 Detail]
Download: Texas-2023-HB2213-Introduced.html
88R4553 SRA-D | ||
By: Landgraf | H.B. No. 2213 |
|
||
|
||
relating to lowering the rates of and repealing the franchise tax. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. (a) Effective January 1, 2024, Sections | ||
171.002(a) and (b), Tax Code, are amended to read as follows: | ||
(a) Subject to Sections 171.003 and 171.1016 and except as | ||
provided by Subsection (b), the rate of the franchise tax is 0.375 | ||
[ |
||
(b) Subject to Sections 171.003 and 171.1016, the rate of | ||
the franchise tax is 0.188 [ |
||
those taxable entities primarily engaged in retail or wholesale | ||
trade. | ||
(b) Effective January 1, 2024, Section 171.1016(b), Tax | ||
Code, is amended to read as follows: | ||
(b) The amount of the tax for which a taxable entity that | ||
elects to pay the tax as provided by this section is liable is | ||
computed by: | ||
(1) determining the taxable entity's total revenue | ||
from its entire business, as determined under Section 171.1011; | ||
(2) apportioning the amount computed under | ||
Subdivision (1) to this state, as provided by Section 171.106, to | ||
determine the taxable entity's apportioned total revenue; and | ||
(3) multiplying the amount computed under Subdivision | ||
(2) by the rate of 0.166 [ |
||
(c) This section applies only to a report originally due on | ||
or after January 1, 2024. | ||
SECTION 2. (a) Effective January 1, 2025, Chapter 171, Tax | ||
Code, is repealed. | ||
(b) A taxable entity that is subject to the franchise tax | ||
imposed under Chapter 171, Tax Code, on December 31, 2024, is not | ||
required to file a franchise tax report or pay a tax on the taxable | ||
entity's taxable margin for the period ending on that date. | ||
(c) Chapter 171, Tax Code, as that chapter existed | ||
immediately before its repeal by this Act, and Subtitle B, Title 2, | ||
Tax Code, continue to apply to audits, deficiencies, | ||
redeterminations, and refunds of any tax due or collected under | ||
Chapter 171 until barred by limitations. | ||
(d) The repeal of Chapter 171, Tax Code, does not affect: | ||
(1) the status of a taxable entity that has had its | ||
corporate privileges, certificate of authority, certificate of | ||
organization, certificate of limited partnership, corporate | ||
charter, or registration revoked, a suit filed against it, or a | ||
receiver appointed under Subchapter F, G, or H of that chapter; | ||
(2) the ability of the comptroller of public accounts, | ||
secretary of state, or attorney general to take action against a | ||
taxable entity under Subchapter F, G, or H of that chapter for | ||
actions that took place before the repeal; or | ||
(3) the right of a taxable entity to contest a | ||
forfeiture, revocation, lawsuit, or appointment of a receiver under | ||
Subchapter F, G, or H of that chapter. | ||
SECTION 3. This Act takes effect January 1, 2024. |