Bill Text: TX SB186 | 2015-2016 | 84th Legislature | Introduced


Bill Title: Relating to the franchise tax and alternative revenue sources and spending priorities for this state; repealing the franchise tax.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-03-04 - Left pending in committee [SB186 Detail]

Download: Texas-2015-SB186-Introduced.html
  84R3163 T
 
  By: Creighton S.B. No. 186
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the franchise tax and alternative revenue sources and
  spending priorities for this state; repealing the franchise tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  This Act may be cited as the Revenue Reform Act
  of 2015.
         SECTION 2.  (a) The comptroller of public accounts shall
  conduct a comprehensive study that:
               (1)  analyzes and compares:
                     (A)  the feasibility of implementing alternative
  methods to the franchise tax imposed under Chapter 171, Tax Code, by
  which revenue may be generated to address the needs of this state;
  and
                     (B)  the effectiveness of each of those methods in
  generating sufficient revenue to address those needs; and
               (2)  prioritizes the revenue needs of this state and
  identifies potential reductions in expenditures by this state.
         (b)  The comptroller of public accounts shall consider the
  funding priorities and requirements established by the Texas
  Constitution in prioritizing the revenue needs of this state as
  required by Subsection (a)(2) of this section.
         (c)  The study conducted under Subsection (a) of this section
  must include an analysis and comparison of the following
  revenue-generating methods:
               (1)  imposing a transaction tax in this state;
               (2)  imposing a value-added tax in this state;
               (3)  eliminating exemptions from the sales and use tax
  imposed under Chapter 151, Tax Code;
               (4)  increasing the rate of the sales and use tax
  imposed under Chapter 151, Tax Code;
               (5)  imposing the sales and use tax under Chapter 151,
  Tax Code, according to rate brackets, the applications of which
  vary according to the sales price of a taxable item;
               (6)  imposing a business sales tax in this state in
  addition to the sales and use tax imposed under Chapter 151, Tax
  Code;
               (7)  any other method the comptroller of public
  accounts considers potentially effective in addressing the revenue
  needs of this state; and
               (8)  imposing a business franchise tax in this state on
  the basis of net profit.
         (d)  Not later than November 1, 2016, the comptroller of
  public accounts shall submit a report to the legislature regarding
  the results of the study conducted under this section. The report
  must:
               (1)  identify one or more revenue-generating methods
  the comptroller determines would be most effective in meeting the
  revenue needs of this state;
               (2)  include a description of any legislation necessary
  to implement the methods identified under Subdivision (1) of this
  subsection; and
               (3)  propose specific reductions in expenditures by
  this state and any legislation necessary to implement those
  reductions.
         SECTION 3.  Effective January 1, 2020, Chapter 171, Tax
  Code, is repealed.
         SECTION 4.  The change in law made by Section 3 of this Act
  does not affect tax liability accruing before the effective date of
  that section. That liability continues in effect as if this Act had
  not been enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 5.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2015.
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