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A BILL TO BE ENTITLED
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AN ACT
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relating to the franchise tax; decreasing franchise tax rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 111.0626(a), Tax Code, is amended to |
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read as follows: |
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(a) The comptroller by rule shall require electronic filing |
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of: |
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(1) a report required under Chapter 151, 201, or 202, |
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or an international fuel tax agreement, for a taxpayer who is also |
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required under Section 111.0625 to transfer payments by electronic |
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funds transfer; and |
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(2) a report required under Section 171.204. |
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SECTION 2. Sections 171.002(a) and (b), Tax Code, are |
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amended to read as follows: |
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(a) Subject to Sections 171.003 and 171.1016 and except as |
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provided by Subsection (b), the rate of the franchise tax is 0.95 |
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[one] percent of taxable margin. |
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(b) Subject to Sections 171.003 and 171.1016, the rate of |
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the franchise tax is 0.475 [0.5] percent of taxable margin for those |
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taxable entities primarily engaged in retail or wholesale trade. |
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SECTION 3. Section 171.1012, Tax Code, is amended by adding |
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Subsection (p) to read as follows: |
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(p) Notwithstanding Subsection (e)(2) or any other |
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provision of this section, the cost of goods sold includes the costs |
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attributable to the acceptance of credit cards and debit cards as a |
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means of payment. |
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SECTION 4. Section 171.1013(c), Tax Code, is amended to |
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read as follows: |
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(c) Notwithstanding the actual amount of wages and cash |
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compensation paid by a taxable entity to its officers, directors, |
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owners, partners, and employees, a taxable entity may not include |
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more than $301,000 [$300,000], or the amount determined under |
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Section 171.006, per 12-month period on which margin is based, for |
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any person in the amount of wages and cash compensation it |
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determines under this section. If a person is paid by more than one |
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entity of a combined group, the combined group may not subtract in |
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relation to that person a total of more than $301,000 [$300,000], or |
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the amount determined under Section 171.006, per 12-month period on |
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which margin is based. |
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SECTION 5. Section 171.106, Tax Code, is amended by adding |
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Subsection (h) to read as follows: |
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(h) A taxable entity that is a broadcaster shall include in |
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the numerator of the broadcaster's apportionment factor receipts |
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arising from a broadcast or other distribution of film programming |
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by any means only if the legal domicile of the broadcaster's |
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customer is in this state. This subsection applies only to receipts |
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that are licensing income from distributing film programming. In |
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this subsection: |
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(1) "Broadcaster" means a taxable entity, not |
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including a cable service provider or a direct broadcast satellite |
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service, that is a: |
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(A) television station licensed by the Federal |
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Communications Commission; |
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(B) television broadcast network; |
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(C) cable television network; or |
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(D) television distribution company. |
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(2) "Customer" means a person, including a license |
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holder, that has a direct connection or contractual relationship |
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with a broadcaster under which the broadcaster derives revenue. |
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(3) "Film programming" means all or part of a live or |
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recorded performance, event, or production intended to be |
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distributed for visual and auditory perception by an audience. |
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(4) "Programming" includes news, entertainment, |
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sporting events, plays, stories, or other literary, commercial, |
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educational, or artistic works. |
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SECTION 6. (a) The comptroller of public accounts shall |
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conduct a comprehensive study that: |
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(1) analyzes and compares: |
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(A) the feasibility of implementing alternative |
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methods to the franchise tax imposed under Chapter 171, Tax Code, by |
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which revenue may be generated to address the needs of this state; |
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and |
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(B) the effectiveness of each of those methods in |
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generating sufficient revenue to address those needs; and |
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(2) prioritizes the revenue needs of this state and |
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identifies potential reductions in expenditures by this state. |
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(b) The comptroller of public accounts shall consider the |
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funding priorities and requirements established by the Texas |
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Constitution in prioritizing the revenue needs of this state as |
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required by Subsection (a)(2) of this section. |
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(c) This section takes effect September 1, 2015. |
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SECTION 7. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 8. Except as otherwise provided by this Act, this |
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Act takes effect January 1, 2016. |