PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3. TAX ADMINISTRATION
SUBCHAPTER V. FRANCHISE TAX
34 TAC §3.595
The Comptroller of Public Accounts adopts the repeal of §3.595, concerning margin: transition, without changes to the proposed text as published in the November 17, 2017, issue of the Texas Register (42 TexReg 6483). This section is being repealed because it covers the transition from using taxable capital and earned surplus as the basis for calculating the franchise tax to calculating the franchise tax based on taxable margin. The section specifically addresses franchise tax reports originally due on May 15, 2008. This report year is now outside the four-year statute of limitations for assessments and refund claims. See Tax Code, §111.107(a) (When Refund or Credit Is Permitted) and §111.201 (Assessment Limitation).
The repeal is adopted under Tax Code, §111.002 (Comptroller's Rules; Compliance; Forfeiture), which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2 (State Taxation).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 21, 2017.
Comptroller of Public Accounts
Effective date: January 10, 2018
Proposal publication date: November 17, 2017
For further information, please call: (512) 475-2220