Vote Smart's Synopsis:

Vote to pass a bill that replaces the corporate franchise tax on for-profit corporations and limited liability companies with a tax on all Texas businesses except for sole proprietorships, general partnerships that are owned by individual persons, non-profit companies, businesses with gross receipts totaling $300,000 or less, and those whose tax bill is less than $1,000, and some other businesses, such as insurance companies. This bill also changes the basis of taxation from net worth or modified net income to a business’s total revenue minus either the cost of goods sold or the total cost of employee compensation. The bill also states that the tax rate can only be increased with the approval of a majority of voters in a statewide referendum and prohibits companies from deducting the costs of hiring undocumented immigrants.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that replaces the corporate franchise tax on for-profit corporations and limited liability companies with a tax on all Texas businesses except for sole proprietorships, general partnerships that are owned by individual persons, non-profit companies, businesses with gross receipts totaling $300,000 or less, and those whose tax bill is less than $1,000, and some other businesses, such as insurance companies. This bill also changes the basis of taxation from net worth or modified net income to a business’s total revenue minus either the cost of goods sold or the total cost of employee compensation. The bill also states that the tax rate can only be increased with the approval of a majority of voters in a statewide referendum and prohibits companies from deducting the costs of hiring undocumented immigrants.

Full Bill Text

Full Bill Text