HBA-RAR H.B. 551 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 551
By: Goolsby
Ways and Means
2/11/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, corporations are not required to pay the franchise tax for a
period if the computed tax for that period is less than $100.  H.B. 551
provides that corporations are not required to pay the franchise tax if the
corporation's gross receipts are less than $100,000.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 171.002(d), Tax Code, to provide that a
corporation is not required to pay or considered to owe any tax for a
period if the amount of tax computed for the corporation is less than $100;
or if the amount of the corporation's gross receipts from its entire
business under Section 171.105, Tax Code (Determination of Gross Receipts
From Entire Business for Taxable Capital), and under Section 171.1051,
including the amount excepted under Section 171.1051(a), Tax Code
(Determination of Gross Receipts From Entire Business for Taxable Earned
Surplus), is  
less than $100,000; rather than if the amount of tax computed for a
corporation is less than $100, the corporation is not required to pay that
amount or considered to owe any tax for that period.  Makes nonsubstantive
changes. 

SECTION 2.  Effective date: January 1, 2000.
            Makes application of this Act prospective.