88(2) HB 3 - House Committee Report version - Bill Text
  88S20218 BEF-D
 
  By:  Geren, Meyer, Darby, Hefner, Raymond, H.B.  No.  3
         et al.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the amount of the total revenue exemption for the
  franchise tax and the exclusion of certain taxable entities from
  the requirement to file a franchise tax report.
               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
               SECTION  1.    Section 171.002(d), Tax Code, is amended to read
  as follows:
               (d)    A taxable entity is not required to pay any tax and is
  not considered to owe any tax for a period if:
                           (1)    the amount of tax computed for the taxable entity
  is less than $1,000; or
                           (2)    the amount of the taxable entity's total revenue
  from its entire business is less than or equal to $2.47 [$1] million
  or the amount determined under Section 171.006 per 12-month period
  on which margin is based.
               SECTION  2.    Section 171.204(b), Tax Code, is amended to read
  as follows:
               (b)    The comptroller may not require a taxable entity that
  does not owe any tax because of the application of Section
  171.002(d)(2) to file an [abbreviated] information report with the
  comptroller [stating the amount of the taxable entity's total
  revenue from its entire business.    The comptroller may not require
  a taxable entity described by this subsection to file an
  information report that requires the taxable entity to report or
  compute its margin].
               SECTION  3.    Section 171.204(d), Tax Code, is repealed.
               SECTION  4.    The changes in law made by this Act apply only to
  a report originally due on or after January 1, 2024.
               SECTION  5.    This Act takes effect only if S.B.  2 or similar
  legislation of the 88th Legislature, 2nd Called Session, 2023,
  relating to providing property tax relief through the public school
  finance system, exemptions, limitations on appraisals and taxes,
  and property tax administration becomes law in a manner described
  by Section 2001.006(a)(2), Government Code. If legislation
  described by this section does not become law in a manner described
  by Section 2001.006(a)(2), Government Code, this Act has no effect.
               SECTION  6.    Except as otherwise provided by this Act, this
  Act takes effect January 1, 2024.

Statutes affected:
Introduced: Tax Code 171.002, Tax Code 171.006, Tax Code 171.204 (Tax Code 171)
House Committee Report: Tax Code 171.002, Tax Code 171.006, Tax Code 171.204 (Tax Code 171)