Bill Text: TX SB178 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the repeal of the franchise tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-01-25 - Referred to Finance [SB178 Detail]
Download: Texas-2017-SB178-Introduced.html
| 85R2602 TJB-D | ||
| By: Estes | S.B. No. 178 | |
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| 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 (a) Chapter 171, Tax Code, is repealed.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, 2017, shall | ||
| file a final franchise tax report and pay a transitional tax as | ||
| required by this subsection on or before May 15, 2018. The | ||
| transitional tax is equal to the tax the taxable entity would have | ||
| paid in 2018 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| had not been repealed.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 and the | ||
| filing of a franchise tax report that are in effect on December 31, | ||
| 2017, remain in effect after the repeal of Chapter 171, Tax Code, by | ||
| this section for the purposes of computing and paying the | ||
| transitional tax and filing a franchise tax report as 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 of public accounts, | ||
| 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, 2018. | ||
