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Rep advises on calculating new biz tax
Rep. Bill Keffer, R-Dallas, who failed to dissuade House members from adopting an expanded business tax intended to contribute to lower school property taxes, sent an e-mail to constituents this week featuring the form businesses would have to fill out assuming Gov. RIck Perry signs House Bill 3 into law.
His note and the form are below. And no, we don’t know what a water’s edge unitary combined basis is, though surely it has nothing to do with water …
Keffer’s words and the form from here:
Dear Friend of District 107 -
As the debate in Austin continues during the Special Session, I want to provide you with two pieces of information to help you understand what’s at stake. As you know, HB 3 (which creates a new business tax) was passed by the House and the Senate and is now awaiting the Governor’s signature. I am attaching the new “Schedule B” that every business would have to complete to calculate its tax liability under this new tax. I encourage you to complete it for your business and distribute to others; only then will you know what the tax will really mean for you. I also am attaching my speech on the House floor in opposition to HB 3, which I think summarizes my concerns with this proposal. Since the Senate has not acted on HB 1 (using $2.3 billion of the surplus to reduce property-tax rates) and HB 2 (the dedication of revenue to reduce property-tax rates), it remains to be seen what will finally happen. It’s never too late to let your voice be heard.
For Texas,
Bill
Schedule B:
Line and Item Amount Amount
Form to be filed and taxes paid on a water’s edge unitary combined basis. (See instructions for more detail on each line item)
Total Revenue (if $300,000 or less, enter “0” on lines 7 and 9) $
Less Certain Deductible Expenses
a. "Cash" compensation, such as wages, salaries, stock options, not to exceed $300,000 for any single employee…………………………….$b. Employer's Cost of Retirement Contributions…...$ c. Employer's Cost of Employee Health Insurance...$ d. Employer's Cost of Worker's Compensation…….$ e. Employee Compensation (sum of a through d )…$ f. Cost of Goods Sold (similar to federal tax return).$ g. Enter greater of line e or line f …………………………………………$Margin (line 1 minus line 2g, but nte 70% of line 1)……………………………$
Texas Apportionment (same as current franchise tax)
a. Gross Receipts Everywhere…………………..$b. Texas Gross Receipts…………………………$ c. Percentage of Gross Receipts Attributed to Texas (line 4b divided by line 4a)…………………………..$Taxable Margin (line 3 multiplied by line 4c)…………………………………..$
Tax Rate (wholesalers & retailers, 0.5%; all others, 1%)………………………..$
Tax (line 5 multiplied by line 6)…………………………………………………$
Less Prior Credits Earned……………………………………………………….$
Tax Due (line 7 minus line 8 but not less than zero)…………………………….$
Permalink | Comments (2) | Categories: Business and economic development, Governor, House, Taxes
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By sstatetaxx
May 10, 2006 5:00 PM | Link to this
Basically, a "water’s edge unitary combined basis" means that the taxpayer does not include revenue earned from business done outside of the U.S. Contrast with a “world-wide unitary combined basis�.
By sstatetaxx
May 10, 2006 5:01 PM | Link to this
Basically, a "water’s edge unitary combined basis" means that the taxpayer does not include revenue earned from business done outside of the U.S. Contrast with a “world-wide unitary combined basis�.