Bill Text: TX HB668 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the franchise tax liability of certain taxable entities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-02-19 - Referred to Ways & Means [HB668 Detail]
Download: Texas-2015-HB668-Introduced.html
84R3293 CJC-D | ||
By: Farney | H.B. No. 668 |
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relating to the franchise tax liability of certain taxable | ||
entities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended | ||
by adding Section 171.0026 to read as follows: | ||
Sec. 171.0026. TAX LIABILITY OF CERTAIN TAXABLE ENTITIES. | ||
(a) In this section, "taxable income" means: | ||
(1) for a taxable entity treated for federal income | ||
tax purposes as a corporation, the amount reportable as taxable | ||
income on line 30, Internal Revenue Service Form 1120; | ||
(2) for a taxable entity treated for federal income | ||
tax purposes as a partnership, the amount reportable as ordinary | ||
business income or loss on line 22, Internal Revenue Service Form | ||
1065; or | ||
(3) for a taxable entity other than a taxable entity | ||
treated for federal income tax purposes as a corporation or | ||
partnership, an amount determined in a manner substantially | ||
equivalent to the amount for Subdivision (1) or (2) determined by | ||
rules the comptroller shall adopt. | ||
(b) Except as provided by Subsection (c), a taxable entity | ||
is not required to pay any tax and is not considered to owe any tax | ||
for a period on which margin is based if the taxable entity's | ||
taxable income for the period is zero or less. | ||
(c) Subsection (b) does not apply to a taxable entity that | ||
is a member of a combined group. | ||
(d) Section 171.1011(a) applies to a reference in this | ||
section to an Internal Revenue Service form, and Section | ||
171.1011(b) applies to a reference in this section to an amount | ||
reportable on a line number on an Internal Revenue Service form. | ||
(e) The comptroller shall adopt rules as necessary to | ||
accomplish the legislative intent prescribed by this section. | ||
SECTION 2. Section 171.204(b), Tax Code, is amended to read | ||
as follows: | ||
(b) The comptroller may require a taxable entity that does | ||
not owe any tax because of the application of Section 171.002(d)(2) | ||
to file an abbreviated information report with the comptroller | ||
stating the amount of the taxable entity's total revenue from its | ||
entire business. The comptroller may require a taxable entity that | ||
does not owe any tax because of the application of Section 171.0026 | ||
to file an abbreviated information report with the comptroller | ||
stating the amount of the taxable entity's taxable income as | ||
defined by that section. The comptroller may not require a taxable | ||
entity described by this subsection to file an information report | ||
that requires the taxable entity to report or compute its margin. | ||
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. |