Bill Text: TX HB75 | 2013 | 83rd Legislature 1st Special Session | Introduced
Bill Title: Relating to the phaseout and repeal of the franchise tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-06-14 - Filed [HB75 Detail]
Download: Texas-2013-HB75-Introduced.html
| 83S10377 TJB-D | ||
| By: Harper-Brown | H.B. No. 75 | |
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| relating to the phaseout and repeal of the franchise tax. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. (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 0.8 | ||
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| (b) Subject to Sections 171.003 and 171.1016, the rate of | ||
| the franchise tax is 0.4 [ |
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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 2. (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 0.6 | ||
| [ |
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| (b) Subject to Sections 171.003 and 171.1016, the rate of | ||
| the franchise tax is 0.3 [ |
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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 3. (a) Effective January 1, 2017, 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 0.4 | ||
| [ |
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| (b) Subject to Sections 171.003 and 171.1016, the rate of | ||
| the franchise tax is 0.2 [ |
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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, 2017. | ||
| SECTION 4. (a) Effective January 1, 2018, 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 0.2 | ||
| [ |
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| (b) Subject to Sections 171.003 and 171.1016, the rate of | ||
| the franchise tax is 0.1 [ |
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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, 2018. | ||
| 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 0.46 [ |
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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 0.345 [ |
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| (b) This section applies only to a report originally due on | ||
| or after January 1, 2016. | ||
| SECTION 7. (a) Effective January 1, 2017, 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 0.23 [ |
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| (b) This section applies only to a report originally due on | ||
| or after January 1, 2017. | ||
| SECTION 8. (a) Effective January 1, 2018, 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 0.115 [ |
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| (b) This section applies only to a report originally due on | ||
| or after January 1, 2018. | ||
| SECTION 9. (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, 2018, shall | ||
| file a final franchise tax return and pay a transitional tax as | ||
| required by this subsection on or before May 15, 2019. The | ||
| transitional tax is equal to the tax the taxable entity would have | ||
| paid in 2019 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, 2019. | ||
| SECTION 10. If H.B. No. 500, Acts of the 83rd Legislature, | ||
| Regular Session, 2013, becomes law, Section 171.0023, Tax Code, as | ||
| added by that Act, is repealed. | ||
| SECTION 11. 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 12. Except as otherwise provided by this Act, this | ||
| Act takes effect January 1, 2015. | ||
