SB 1 by Sen. Duncan (R-Lubbock) is the fiscal matters bill that is essential for a balanced budget certification. Its regular-session version, SB 1811, included a number of changes to the franchise tax. When SB 1 left the Senate some of those changes were gone while others survived and that status remained until the bill reached the House floor, where the eliminated franchise tax provisions were reinstated.
SB 1 is now in conference committee being negotiated by Sens. Duncan, Deuell, Hinojosa, Shapiro, Williams and Reps. Pitts, Eissler, Geren, Otto, Villarreal. Here are the franchise tax items in the bill as it went to conference:
- Extension of the $1million minimum revenue threshold for two years until Dec. 31, 2013
- Extension of the deadline to use pre-margin tax credits until Dec. 31, 2016
- Adding apparel rental entities as retailers if classified in SIC Codes 5999 and 7299
- Excluding payments to live entertainers from total revenue when made by live entertainment companies (defined in the bill)
- Excluding payments to non-employee delivery contractors from total revenue by qualified logistics companies (defined in the bill)