Bill Text: TX SB1605 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the reduction of the rates of the franchise tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-16 - Referred to Finance [SB1605 Detail]
Download: Texas-2023-SB1605-Introduced.html
88R11062 CJD-D | ||
By: Paxton | S.B. No. 1605 |
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relating to the reduction of the rates of the franchise tax. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. 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 0.6 | ||
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(b) Subject to Sections 171.003 and 171.1016, the rate of | ||
the franchise tax is 0.3 [ |
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taxable entities primarily engaged in retail or wholesale trade. | ||
SECTION 2. Section 171.1016(b), Tax Code, is amended to | ||
read as follows: | ||
(b) The amount of the tax for which a taxable entity that | ||
elects to pay the tax as provided by this section is liable is | ||
computed by: | ||
(1) determining the taxable entity's total revenue | ||
from its entire business, as determined under Section 171.1011; | ||
(2) apportioning the amount computed under | ||
Subdivision (1) to this state, as provided by Section 171.106, to | ||
determine the taxable entity's apportioned total revenue; and | ||
(3) multiplying the amount computed under Subdivision | ||
(2) by the rate of 0.265 [ |
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SECTION 3. This Act applies only to a report originally due | ||
on or after the effective date of this Act. | ||
SECTION 4. This Act takes effect January 1, 2024. |