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AN ACT
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relating to the amount of the total revenue exemption for the |
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franchise tax and the exclusion of certain taxable entities from |
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the requirement to file a franchise tax report. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.002(d), Tax Code, is amended to read |
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as follows: |
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(d) A taxable entity is not required to pay any tax and is |
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not considered to owe any tax for a period if: |
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(1) the amount of tax computed for the taxable entity |
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is less than $1,000; or |
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(2) the amount of the taxable entity's total revenue |
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from its entire business is less than or equal to $2.47 [$1] million |
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or the amount determined under Section 171.006 per 12-month period |
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on which margin is based. |
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SECTION 2. Section 171.204(b), Tax Code, is amended to read |
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as follows: |
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(b) The comptroller may not require a taxable entity that |
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does not owe any tax because of the application of Section |
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171.002(d)(2) to file an [abbreviated] information report with the |
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comptroller [stating the amount of the taxable entity's total |
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revenue from its entire business. The comptroller may not require |
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a taxable entity described by this subsection to file an |
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information report that requires the taxable entity to report or |
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compute its margin]. |
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SECTION 3. Section 171.204(d), Tax Code, is repealed. |
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SECTION 4. The changes in law made by this Act apply only to |
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a report originally due on or after January 1, 2024. |
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SECTION 5. This Act takes effect only if S.B. 2 or similar |
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legislation of the 88th Legislature, 2nd Called Session, 2023, |
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relating to providing property tax relief through the public school |
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finance system, exemptions, limitations on appraisals and taxes, |
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and property tax administration becomes law in a manner described |
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by Section 2001.006(a)(2), Government Code. If legislation |
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described by this section does not become law in a manner described |
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by Section 2001.006(a)(2), Government Code, this Act has no effect. |
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SECTION 6. Except as otherwise provided by this Act, this |
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Act takes effect January 1, 2024. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 3 passed the Senate on |
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July 12, 2023, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 3 passed the House on |
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July 13, 2023, by the following vote: Yeas 131, Nays 5, one |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |
House Committee Report: Tax Code 171.002, Tax Code 171.006, Tax Code 171.204 (Tax Code 171)