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A BILL TO BE ENTITLED
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AN ACT
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relating to the $1 million total revenue exemption for the |
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franchise tax; temporarily decreasing the rates of the franchise |
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tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended |
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by adding Section 171.0022 to read as follows: |
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Sec. 171.0022. TEMPORARY PERMISSIVE ALTERNATE RATES. (a) |
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Notwithstanding Section 171.002(a) and subject to Section 171.1016 |
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and Subsection (b) of this section, a taxable entity may elect to |
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pay the tax imposed under this chapter at a rate of 0.95 percent of |
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taxable margin. |
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(b) Notwithstanding Section 171.002(b) and subject to |
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Section 171.1016, a taxable entity primarily engaged in retail or |
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wholesale trade as defined by Sections 171.002(c) and (c-1) may |
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elect to pay the tax imposed under this chapter at a rate of 0.475 |
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percent of taxable margin. |
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(c) This section applies only to a report originally due on |
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or after January 1, 2014, and before January 1, 2016. |
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(d) This section expires December 31, 2015. |
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SECTION 2. (a) Section 1(c), Chapter 286 (H.B. 4765), Acts |
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of the 81st Legislature, Regular Session, 2009, as amended by |
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Section 37.01, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st |
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Called Session, 2011, is repealed. |
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(b) This section takes effect September 1, 2013. |
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SECTION 3. (a) Section 2, Chapter 286 (H.B. 4765), Acts of |
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the 81st Legislature, Regular Session, 2009, as amended by Section |
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37.02, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called |
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Session, 2011, and which amended former Subsection (d), Section |
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171.002, Tax Code, is repealed. |
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(b) This section takes effect September 1, 2013. |
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SECTION 4. (a) Section 3, Chapter 286 (H.B. 4765), Acts of |
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the 81st Legislature, Regular Session, 2009, as amended by Section |
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37.03, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called |
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Session, 2011, and which amended former Subsection (a), Section |
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171.0021, Tax Code, is repealed. |
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(b) This section takes effect September 1, 2013. |
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SECTION 5. Section 171.006(b), Tax Code, is amended to read |
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as follows: |
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(b) Beginning in 2010, on January 1 of each even-numbered |
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year, the amounts prescribed by Sections 171.002(d)(2)[,
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171.0021,] and 171.1013(c) are increased or decreased by an amount |
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equal to the amount prescribed by those sections on December 31 of |
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the preceding year multiplied by the percentage increase or |
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decrease during the preceding state fiscal biennium in the consumer |
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price index and rounded to the nearest $10,000. |
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SECTION 6. Sections 171.0021 and 171.1016(d), Tax Code, are |
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repealed. |
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SECTION 7. This Act applies only to a report originally due |
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on or after January 1, 2014. |
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SECTION 8. Except as otherwise provided by this Act, this |
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Act takes effect January 1, 2014. |
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* * * * * |