Bill Text: TX HB98 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the E-Z computation and rate of the franchise tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-04-26 - Left pending in committee [HB98 Detail]
Download: Texas-2011-HB98-Introduced.html
82R751 ALL-F | ||
By: Paxton | H.B. No. 98 |
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relating to the E-Z computation and rate of the franchise tax. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 171.1016, Tax Code, is transferred to | ||
Subchapter C, Chapter 171, Tax Code, and amended to read as follows: | ||
Sec. 171.1016. E-Z COMPUTATION AND RATE. (a) | ||
Notwithstanding any other provision of this chapter, a taxable | ||
entity whose total revenue from its entire business is not more than | ||
$10 million may elect to pay the tax imposed under this chapter in | ||
the amount computed and at the rate provided by this section rather | ||
than in the amount computed and at the tax rate provided by Section | ||
171.002. | ||
(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; [ |
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(3) subtracting the amount of federal income taxes the | ||
taxable entity paid during the period on which the report is based | ||
from the apportioned total revenue computed under Subdivision (2); | ||
(4) subtracting $1 million from [ |
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amount computed under Subdivision (3); and | ||
(5) applying to the difference computed under | ||
Subdivision (4) the appropriate tax rate, as follows: | ||
(A) subject to Subsection (c), if the difference | ||
is $1 million or less, the tax rate is 0.25 percent of the | ||
difference; or | ||
(B) if the difference is more than $1 million, | ||
the tax rate is $2,500 plus 0.5 percent of the amount of the | ||
difference that exceeds $1 million. | ||
(c) A taxable entity is not required to pay any tax and is | ||
not considered to owe any tax for a period if the amount computed | ||
under Subsection (b)(4) is zero or less [ |
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(d) [ |
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provided by this section may not take a credit, deduction, or other | ||
adjustment that is not specifically authorized by this section. | ||
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(e) A reference in this chapter or other law to the rate of | ||
the franchise tax means, as appropriate, the rate under Section | ||
171.002 or, for a taxable entity that elects to pay the tax as | ||
provided by this section, the rate under 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 | ||
171.1016(c) to file an abbreviated information report with the | ||
comptroller stating the amount computed under Section | ||
171.1016(b)(3). 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. The changes in law made by this Act apply only to | ||
a report originally due on or after the effective date of this Act. | ||
SECTION 4. This Act takes effect January 1, 2012. |