For Immediate Release
October 15, 2007
Comptroller Susan Combs Introduces Lubbock Taxpayers to the Revised Texas Franchise Tax at October 25 Seminar
AUSTIN - The state Comptroller’s office will host a free seminar on Thursday, Oct. 25 to introduce Lubbock area taxpayers to the revised Texas franchise tax and help them learn how to calculate the tax. The seminar will benefit current franchise taxpayers and entities that will file franchise tax reports for the first time, beginning with reports due on or after Jan. 1, 2008.
“The revised franchise tax, sometimes called the ‘margin tax,’ was passed by the Legislature in 2006 and modified earlier this year,” Comptroller Susan Combs said. “After so much public discussion and debate, some taxpayers may be uncertain about exactly how the law will work. These free seminars are a great opportunity to answer taxpayers’ questions.”
The seminar is scheduled for Oct. 25, from 1:30-5 p.m. at the Holiday Inn Park Plaza, located at 3201 S. Loop 289 in Lubbock.
The Lubbock seminar is one of 10 scheduled throughout the state. Web-based training may also take place to assist taxpayers who are unable to attend a seminar. For complete details about the scheduled seminars and any additional seminars or Web-based training that may be added to the schedule, see the Comptroller’s Web site at www.window.state.tx.us/taxinfo/franchise/tour.html.
The Legislature revised the franchise tax by changing the tax base and the tax rate and extending coverage to most legal entities. All taxable entities with total revenue greater than $10 million must pay tax on their margin. Margin is the lesser of: total revenue minus cost of goods sold, total revenue minus compensation or total revenue times 70 percent. Total revenue is determined based on federal income tax reporting. Taxable entities with $10 million or less in total revenue may choose an E-Z filing option (i.e., 0.00575 x apportioned total revenue), or they may choose to pay tax on their margin.
The Comptroller’s free franchise tax seminar may be applied to continuing professional education requirements for certified public accountants and continuing legal education for attorneys.
To make a reservation for the Lubbock seminar, contact the Lubbock Chamber of Commerce at (806) 761-7000.