Informed Commentary On The TTRC’s Proposed Tax Bill

Texas Salt Law Blog, a blog by an attorney who specializes in state in local tax issues, has an excellent analysis up of the proposed tax bill that accompanied the Texas Tax Reform Commission’s lackluster proposals released last week.

Here’s an interesting snippit:

The first step in understanding the changes that would be made by the draft bill is to identify the business entities that would and would not be subject to the AMT. The draft bill would impose the tax on a “taxable entity,” defined generally as a partnership, corporation, banking corporation, savings and loan association, limited liability company, business trust, professional association, business association, joint venture, joint stock company, holding company, or other legal entity. A “taxable entity” would include a “combined group,” defined as “taxable entities that are part of an affiliated group engaged in a unitary business and that are required to file a group report,” as further defined in the draft bill.

A “taxable entity” would not include a sole proprietorship (unless it is an entity that can file as a sole proprietorship for federal tax purposes but is formed in a manner under the laws of Texas or another state that limits its liability), a general partnership directly owned entirely by natural persons, a passive entity (as defined), an exempt entity, a qualifying grantor trust, a qualifying estate, an escrow, a qualifying family limited partnership, a qualifying limited or general passive investment partnership, a qualifying trust, a qualifying real estate investment trust, or REIT, and its qualified REIT subsidiary, and a real estate mortgage investment conduit, or REMIC.

For more, see the full post here. There is also a podcast of the post here.

Bookmark It