Ron Simmons voted Yea (Passage) on this Legislation.
Title: Establishes Standards for Determining Adjusted Franchise Tax Rates
Title: Establishes Standards for Determining Adjusted Franchise Tax Rates
Vote to pass a bill that establishes standards and procedures for adjusting, controlling, and reporting franchise tax rates and other revenue-related funds.
Requires the comptroller of public accounts to determine the ending balance of general revenue-related funds from the preceding state fiscal biennium and take the following actions no later than December 15 of each odd-numbered year (Secs. 1 & 2):
Determine and adopt the adjusted franchise tax rates; and
Publish a notice about the determined rates in the Texas Register.
Requires that, in determining the adjusted tax rates, the amount should proportionally reflect the reductions of franchise tax rates that are effective when the determination is made (Sec. 2).
Specifies that the adjusted tax rates should be determined and provided in a report every even-numbered year (Sec. 2).
Specifies that beginning on September 1, 2017, franchise tax rates expire on December 31 of a given year if in that state fiscal year the adjusted franchise tax rate is less than 15% of the franchise tax rate (Sec. 5).
Requires a standard computation formula to be applied in order to calculate the taxable margin for franchise tax (Sec. 2).
Specifies that with regard to the expiration date of the tax, this bill does not affect the status of a taxable entity that has had certain sanctions imposed or suits filed against it (Sec. 5).
Authorizes the comptroller, secretary of state, or attorney general to take action against a taxable entity that is in violation of this bill (Sec. 5).
Authorizes a taxable entity to contest a forfeiture, revocation, lawsuit, or appointment of a Receiver (Sec. 5).
Specifies that this bill applies only to a franchise tax report created on or after January 1, 2020 (Sec. 6).
Title: Establishes Standards for Determining Adjusted Franchise Tax Rates