Bill Text: TX HB509 | 2013-2014 | 83rd Legislature | Comm Sub
Bill Title: Relating to the phaseout and repeal of the franchise tax; lowering the rates of the taxes.
Spectrum: Partisan Bill (Republican 17-0)
Status: (Introduced - Dead) 2013-05-08 - Committee report sent to Calendars [HB509 Detail]
Download: Texas-2013-HB509-Comm_Sub.html
83R27175 TJB-D | |||
By: Murphy, Harper-Brown, Harless, | H.B. No. 509 | ||
Hilderbran, et al. | |||
Substitute the following for H.B. No. 509: | |||
By: Hilderbran | C.S.H.B. No. 509 |
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relating to the phaseout and repeal of the franchise tax; lowering | ||
the rates of the taxes. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. (a) Effective January 1, 2014, 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 0.75 | ||
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(b) Subject to Sections 171.003 and 171.1016, the rate of | ||
the franchise tax is 0.38 [ |
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taxable entities primarily engaged in retail or wholesale trade. | ||
(b) This section applies only to a report originally due on | ||
or after January 1, 2014. | ||
SECTION 2. (a) Effective January 1, 2015, 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 0.50 | ||
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(b) Subject to Sections 171.003 and 171.1016, the rate of | ||
the franchise tax is 0.25 [ |
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taxable entities primarily engaged in retail or wholesale trade. | ||
(b) This section applies only to a report originally due on | ||
or after January 1, 2015. | ||
SECTION 3. (a) Effective January 1, 2016, 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 0.25 | ||
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(b) Subject to Sections 171.003 and 171.1016, the rate of | ||
the franchise tax is 0.13 [ |
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taxable entities primarily engaged in retail or wholesale trade. | ||
(b) This section applies only to a report originally due on | ||
or after January 1, 2016. | ||
SECTION 4. (a) Effective January 1, 2014, 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 0.43 [ |
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(b) This section applies only to a report originally due on | ||
or after January 1, 2014. | ||
SECTION 5. (a) Effective January 1, 2015, 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 0.29 [ |
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(b) This section applies only to a report originally due on | ||
or after January 1, 2015. | ||
SECTION 6. (a) Effective January 1, 2016, 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 0.14 [ |
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(b) This section applies only to a report originally due on | ||
or after January 1, 2016. | ||
SECTION 7. Section 171.006(b), Tax Code, is amended to read | ||
as follows: | ||
(b) Beginning in 2010, on January 1 of each even-numbered | ||
year, the amounts prescribed by Sections 171.002(d)(2)[ |
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equal to the amount prescribed by those sections on December 31 of | ||
the preceding year multiplied by the percentage increase or | ||
decrease during the preceding state fiscal biennium in the consumer | ||
price index and rounded to the nearest $10,000. | ||
SECTION 8. Section 1(c), Chapter 286 (H.B. 4765), Acts of | ||
the 81st Legislature, Regular Session, 2009, as amended by Section | ||
37.01, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called | ||
Session, 2011, is repealed. | ||
SECTION 9. Section 2, Chapter 286 (H.B. 4765), Acts of the | ||
81st Legislature, Regular Session, 2009, as amended by Section | ||
37.02, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called | ||
Session, 2011, and which amended former Subsection (d), Section | ||
171.002, Tax Code, is repealed. | ||
SECTION 10. Section 3, Chapter 286 (H.B. 4765), Acts of the | ||
81st Legislature, Regular Session, 2009, as amended by Section | ||
37.03, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called | ||
Session, 2011, and which amended former Subsection (a), Section | ||
171.0021, Tax Code, is repealed. | ||
SECTION 11. Sections 171.0021 and 171.1016(d), Tax Code, | ||
are repealed. | ||
SECTION 12. (a) 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, 2016, shall | ||
file a final franchise tax return and pay a transitional tax as | ||
required by this subsection on or before May 15, 2017. The | ||
transitional tax is equal to the tax the taxable entity would have | ||
paid in 2017 under Chapter 171, Tax Code, if Chapter 171, Tax Code, | ||
had not been repealed. The provisions of Chapter 171, Tax Code, | ||
relating to the computation and payment of the franchise tax remain | ||
in effect after the repeal of Chapter 171, Tax Code, by this section | ||
for the purposes of computing and paying the transitional tax | ||
required by this subsection. | ||
(c) Chapter 171, Tax Code, 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, including | ||
the tax due as provided by Subsection (b) of this section, 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, suit filed against it, or a | ||
receiver appointed under Subchapter F, G, or H of that chapter; | ||
(2) the ability of the comptroller, 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. | ||
(e) This section takes effect January 1, 2017. | ||
SECTION 13. Except as otherwise provided by this Act, this | ||
Act applies only to a report originally due on or after the | ||
effective date of this Act. | ||
SECTION 14. Except as otherwise provided by this Act, this | ||
Act takes effect January 1, 2014. |