Bill Text: TX SB105 | 2015-2016 | 84th Legislature | Introduced


Bill Title: Relating to the repeal of the franchise tax.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2015-03-04 - Left pending in committee [SB105 Detail]

Download: Texas-2015-SB105-Introduced.html
  84R236 TJB-D
 
  By: Estes S.B. No. 105
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the repeal of the franchise tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a)  Chapter 171, Tax Code, is repealed.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, 2015, shall
  file a final franchise tax return and pay a transitional tax as
  required by this subsection on or before May 15, 2016. The
  transitional tax is equal to the tax the taxable entity would have
  paid in 2016 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  had not been repealed.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 in
  effect on December 31, 2015, 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.
         SECTION 2.  This Act takes effect January 1, 2016.
feedback