Perry’s bill ending the franchise tax public information report

The text as introduced · 681 words

89R5715 SRA-D

By: Perry
S.B. No. 1875

A BILL TO BE ENTITLED

AN ACT

relating to the repeal of the requirement that certain entities

subject to the franchise tax must file a public information report

with the comptroller of public accounts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 153.301, Business Organizations Code, is

amended to read as follows:

Sec. 153.301. PERIODIC REPORT. The secretary of state may

require a domestic limited partnership or a foreign limited

partnership registered to transact business in this state [ that is

not required to file a public information report with the

comptroller under Section 171.203, Tax Code, ] to file a report not

more than once every four years as required by this subchapter.

SECTION 2. Sections 12.019(e) and (h), Property Code, are

amended to read as follows:

(e) An [ Subject to Subsection (f), an ] affidavit described

by Subsection (c) must:

(1) be executed under penalty of perjury by an

individual who swears that the individual:

(A) is at least 18 years of age;

(B) is authorized to execute and deliver the

affidavit on behalf of the entity;

(C) is fully competent to execute the affidavit;

and

(D) understands that:

(i) third parties will rely on the

truthfulness of the statements made in the affidavit; and

(ii) the affidavit is made under penalty of

perjury; and

(2) state:

(A) the name of the domestic entity or foreign

entity that holds title to the real property and that the entity is

active or in good standing under the laws of the entity's

jurisdiction of formation;

(B) the address, including street address, of the

domestic entity's or foreign entity's principal place of business

in this state or, if the entity does not have a principal place of

business in this state, the address of the entity's principal place

of business in the state or country that is the entity's

jurisdiction of formation;

(C) the legal description of the real property an

estate or interest in which is to be transferred and specify the

nature of the transfer authorized; and

(D) the name and title of one or more individuals

authorized to transfer on the entity's behalf an estate or interest

in the real property described in the affidavit.

(h) The individual executing the affidavit described by

Subsection (c) may be the individual identified in the affidavit as

authorized to transfer an estate or interest in the real property

described in the affidavit if the entity is :

(1) [ the entity is ] a limited liability company and

the affidavit includes a representation by the affiant that the

affiant is the sole member and manager of the limited liability

company;

(2) [ the entity is ] a limited partnership and the

affidavit includes a representation by the affiant that the affiant

is the sole general partner of the limited partnership; or

(3) [ the entity is ] a professional entity and the

affidavit includes a representation by the affiant that the affiant

is the sole director and officer of the applicable professional

entity[ ; or

[ (4) the most recent franchise tax public information

report of the entity under Section 171.203, Tax Code, available on

the date the affidavit is executed identifies only the affiant and

no other person as an officer, director, member, manager, or

general partner of the entity ].

SECTION 3. Section 171.207, Tax Code, is amended to read as

follows:

Sec. 171.207. INFORMATION NOT CONFIDENTIAL. Information

contained in a document filed under this chapter with a county clerk

as notice of a tax lien [ The following information ] is not

confidential and shall be made open to public inspection[ :

[ (1) information contained in a document filed under

this chapter with a county clerk as notice of a tax lien; and

[ (2) information contained in a report required by

Section 171.203 or 171.2035 ].

SECTION 4. The following provisions are repealed:

(1) Section 12.019(f), Property Code; and

(2) Section 171.203, Tax Code.

SECTION 5. This Act takes effect September 1, 2025.