HB 2577
AN ACT relating to the contents of a notice provided to a taxable entity
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Modifies how Texas tax authorities can notify businesses that have failed to file their franchise tax report. Specifically, the notice sent to a taxable entity cannot state a required tax payment amount based solely on the failure to file the report, which provides additional protection for businesses during tax reporting processes. The law aims to prevent premature or potentially inaccurate tax assessment notices and takes effect either immediately with a two-thirds legislative vote or on September 1, 2025.
Subject Areas
Bill Text
relating to the contents of a notice provided to a taxable entity that fails to file a franchise tax report when due. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter E, Chapter 171, Tax Code, is amended by adding Section 171.213 to read as follows: Sec. 171.213. NOTICE OF FAILURE TO TIMELY FILE REPORT. A notice sent to a taxable entity may not state that the taxable entity is required to pay a specific amount of franchise tax based solely on the taxable entity's failure to file a report under this SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to the contents of a notice provided to a taxable entity
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