HB1508 - Relating to the repeal of the franchise tax.

  89R50 SRA-D     By: Metcalf H.B. No. 1508       A BILL TO BE ENTITLED   AN ACT   relating to the repeal of the franchise tax.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 171, Tax Code, is repealed.          SECTION 2.  A taxable entity that is subject to the franchise   tax imposed under Chapter 171, Tax Code, on December 31, 2025, is   not required to file a franchise tax report or pay a tax on the   taxable entity's taxable margin for the period ending on that date.          SECTION 3.  Chapter 171, Tax Code, as that chapter existed   immediately before its repeal by this Act, and Subtitle B, Title 2,   Tax Code, continue to apply to audits, deficiencies,   redeterminations, and refunds of any tax due or collected under   Chapter 171 until barred by limitations.          SECTION 4.  The repeal of Chapter 171, Tax Code, does not   affect:                (1)  the status of a taxable entity that has had its   corporate privileges, certificate of authority, certificate of   organization, certificate of limited partnership, corporate   charter, or registration revoked, suit filed against it, or a   receiver appointed under Subchapter F, G, or H of that chapter;                (2)  the ability of the comptroller of public accounts,   secretary of state, or attorney general to take action against a   taxable entity under Subchapter F, G, or H of that chapter for   actions that took place before the repeal; or                (3)  the right of a taxable entity to contest a   forfeiture, revocation, lawsuit, or appointment of a receiver under   Subchapter F, G, or H of that chapter.          SECTION 5.  This Act takes effect January 1, 2026.