Bill Text: TX HB1439 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the franchise tax liability of certain taxable entities.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2011-04-26 - Left pending in committee [HB1439 Detail]
Download: Texas-2011-HB1439-Introduced.html
| 82R7594 CJC-D | ||
| By: Berman | H.B. No. 1439 | |
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| relating to the franchise tax liability of certain taxable | ||
| entities. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended | ||
| by adding Section 171.0024 to read as follows: | ||
| Sec. 171.0024. TAX LIABILITY OF CERTAIN TAXABLE ENTITIES. | ||
| (a) In this section, "taxable income" means: | ||
| (1) for a taxable entity treated for federal income | ||
| tax purposes as a corporation, the amount reportable as taxable | ||
| income on line 30, Internal Revenue Service Form 1120; | ||
| (2) for a taxable entity treated for federal income | ||
| tax purposes as a partnership, the amount reportable as ordinary | ||
| business income or loss on line 22, Internal Revenue Service Form | ||
| 1065; or | ||
| (3) for a taxable entity other than a taxable entity | ||
| treated for federal income tax purposes as a corporation or | ||
| partnership, an amount determined in a manner substantially | ||
| equivalent to the amount for Subdivision (1) or (2) determined by | ||
| rules the comptroller shall adopt. | ||
| (b) Except as provided by Subsection (c), a taxable entity | ||
| is not required to pay any tax and is not considered to owe any tax | ||
| for a period on which margin is based if the taxable entity's | ||
| taxable income for the period is zero or less. | ||
| (c) Subsection (b) does not apply to a taxable entity that | ||
| is a member of a combined group. | ||
| (d) Section 171.1011(a) applies to a reference in this | ||
| section to an Internal Revenue Service form, and Section | ||
| 171.1011(b) applies to a reference in this section to an amount | ||
| reportable on a line number on an Internal Revenue Service form. | ||
| (e) The comptroller shall adopt rules as necessary to | ||
| accomplish the legislative intent prescribed by this section. | ||
| SECTION 2. Section 171.204(b), Tax Code, is amended to read | ||
| as follows: | ||
| (b) The comptroller may 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 require a taxable entity that | ||
| does not owe any tax because of the application of Section 171.0024 | ||
| to file an abbreviated information report with the comptroller | ||
| stating the amount of the taxable entity's taxable income as | ||
| defined by that section. 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. 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, 2012. | ||
