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HB1508 • 2025
Relating to the repeal of the franchise tax.
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
Relating to the repeal of the franchise tax.
Scheduled for public hearing on . . .
Considered in public hearing
Testimony taken/registration(s) recorded in committee
Left pending in committee
Read first time
Referred to Ways & Means
Filed
Relating to the repeal of the franchise tax.
89(R) HB 1508 - Introduced version - Bill Text 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 Chapter 171, Tax Code, is repealed.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.