Bill Text: TX HB3482 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the franchise tax; decreasing franchise tax rates.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-18 - Referred to Ways & Means [HB3482 Detail]
Download: Texas-2015-HB3482-Introduced.html
By: Bonnen of Brazoria | H.B. No. 3482 |
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relating to the franchise tax; decreasing franchise tax rates. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 111.0626(a), Tax Code, is amended to | ||
read as follows: | ||
(a) The comptroller by rule shall require electronic filing | ||
of: | ||
(1) a report required under Chapter 151, 201, or 202, | ||
or an international fuel tax agreement, for a taxpayer who is also | ||
required under Section 111.0625 to transfer payments by electronic | ||
funds transfer; and | ||
(2) a report required under Section 171.204. | ||
SECTION 2. Sections 171.002(a) and (b), Tax Code, are | ||
amended to read as follows: | ||
(a) Subject to Sections 171.003 and 171.1016 and except as | ||
provided by Subsection (b), the rate of the franchise tax is 0.95 | ||
[ |
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(b) Subject to Sections 171.003 and 171.1016, the rate of | ||
the franchise tax is 0.475 [ |
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taxable entities primarily engaged in retail or wholesale trade. | ||
SECTION 3. Section 171.1012, Tax Code, is amended by adding | ||
Subsection (p) to read as follows: | ||
(p) Notwithstanding Subsection (e)(2) or any other | ||
provision of this section, the cost of goods sold includes the costs | ||
attributable to the acceptance of credit cards and debit cards as a | ||
means of payment. | ||
SECTION 4. Section 171.1013(c), Tax Code, is amended to | ||
read as follows: | ||
(c) Notwithstanding the actual amount of wages and cash | ||
compensation paid by a taxable entity to its officers, directors, | ||
owners, partners, and employees, a taxable entity may not include | ||
more than $301,000 [ |
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Section 171.006, per 12-month period on which margin is based, for | ||
any person in the amount of wages and cash compensation it | ||
determines under this section. If a person is paid by more than one | ||
entity of a combined group, the combined group may not subtract in | ||
relation to that person a total of more than $301,000 [ |
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the amount determined under Section 171.006, per 12-month period on | ||
which margin is based. | ||
SECTION 5. Section 171.106, Tax Code, is amended by adding | ||
Subsection (h) to read as follows: | ||
(h) A taxable entity that is a broadcaster shall include in | ||
the numerator of the broadcaster's apportionment factor receipts | ||
arising from a broadcast or other distribution of film programming | ||
by any means only if the legal domicile of the broadcaster's | ||
customer is in this state. This subsection applies only to receipts | ||
that are licensing income from distributing film programming. In | ||
this subsection: | ||
(1) "Broadcaster" means a taxable entity, not | ||
including a cable service provider or a direct broadcast satellite | ||
service, that is a: | ||
(A) television station licensed by the Federal | ||
Communications Commission; | ||
(B) television broadcast network; | ||
(C) cable television network; or | ||
(D) television distribution company. | ||
(2) "Customer" means a person, including a license | ||
holder, that has a direct connection or contractual relationship | ||
with a broadcaster under which the broadcaster derives revenue. | ||
(3) "Film programming" means all or part of a live or | ||
recorded performance, event, or production intended to be | ||
distributed for visual and auditory perception by an audience. | ||
(4) "Programming" includes news, entertainment, | ||
sporting events, plays, stories, or other literary, commercial, | ||
educational, or artistic works. | ||
SECTION 6. (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) This section takes effect September 1, 2015. | ||
SECTION 7. This Act applies only to a report originally due | ||
on or after the effective date of this Act. | ||
SECTION 8. Except as otherwise provided by this Act, this | ||
Act takes effect January 1, 2016. |