Texas proposal would force large taxpayers to accelerate margin tax payments

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On April 7, 2011, the Texas House of Representatives Appropriations Committee debated a proposal that would require taxpayers deemed a "large taxable entity" to pay the franchise (margin) tax covering the annual period in five payments, as opposed to the current single May 15 payment due date. An identical measure was introduced in the Senate. Under the proposal, the first four payments would be due on July 15, October 15, January 15, and April 15, with each amount being equal to 25 percent of 90 percent of the large taxable entity's total tax owed for the preceding regular annual period. The final payment, due on May 15, would be equal to the total tax for the regular annual period, minus the sum of the amounts of the first four payments. If the sum of the amounts of the first four payments exceeds the total tax for the regular annual period, the large taxable entity may deduct the amount of the overpayment from the next payment required to be made or request a refund of that amount. [H.B. 3790, considered in Appropriations (H), 4/7/11; S.B. 1811, referred to Finance (S), 3/24/11]


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