By: Hilderbran, et al. (Senate Sponsor - Hegar) H.B. No. 500
         (In the Senate - Received from the House May 9, 2013;
  May 9, 2013, read first time and referred to Committee on Finance;
  May 20, 2013, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 13, Nays 0, 1 present not
  voting; May 20, 2013, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 500 By:  Hegar
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the $1 million total revenue exemption for the
  franchise tax; temporarily decreasing the rates of the franchise
  tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 171, Tax Code, is amended
  by adding Section 171.0022 to read as follows:
         Sec. 171.0022.  TEMPORARY PERMISSIVE ALTERNATE RATES. (a)
  Notwithstanding Section 171.002(a) and subject to Section 171.1016
  and Subsection (b) of this section, a taxable entity may elect to
  pay the tax imposed under this chapter at a rate of 0.95 percent of
  taxable margin.
         (b)  Notwithstanding Section 171.002(b) and subject to
  Section 171.1016, a taxable entity primarily engaged in retail or
  wholesale trade as defined by Sections 171.002(c) and (c-1) may
  elect to pay the tax imposed under this chapter at a rate of 0.475
  percent of taxable margin.
         (c)  This section applies only to a report originally due on
  or after January 1, 2014, and before January 1, 2016.
         (d)  This section expires December 31, 2015.
         SECTION 2.  (a)  Section 1(c), Chapter 286 (H.B. 4765), Acts
  of the 81st Legislature, Regular Session, 2009, as amended by
  Section 37.01, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st
  Called Session, 2011, is repealed.
         (b)  This section takes effect September 1, 2013.
         SECTION 3.  (a)  Section 2, Chapter 286 (H.B. 4765), Acts of
  the 81st Legislature, Regular Session, 2009, as amended by Section
  37.02, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
  Session, 2011, and which amended former Subsection (d), Section
  171.002, Tax Code, is repealed.
         (b)  This section takes effect September 1, 2013.
         SECTION 4.  (a)  Section 3, Chapter 286 (H.B. 4765), Acts of
  the 81st Legislature, Regular Session, 2009, as amended by Section
  37.03, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called
  Session, 2011, and which amended former Subsection (a), Section
  171.0021, Tax Code, is repealed.
         (b)  This section takes effect September 1, 2013.
         SECTION 5.  Section 171.006(b), Tax Code, is amended to read
  as follows:
         (b)  Beginning in 2010, on January 1 of each even-numbered
  year, the amounts prescribed by Sections 171.002(d)(2)[,
  171.0021,] and 171.1013(c) are increased or decreased by an amount
  equal to the amount prescribed by those sections on December 31 of
  the preceding year multiplied by the percentage increase or
  decrease during the preceding state fiscal biennium in the consumer
  price index and rounded to the nearest $10,000.
         SECTION 6.  Sections 171.0021 and 171.1016(d), Tax Code, are
  repealed.
         SECTION 7.  This Act applies only to a report originally due
  on or after January 1, 2014.
         SECTION 8.  Except as otherwise provided by this Act, this
  Act takes effect January 1, 2014.
 
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