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| Texas Franchise Tax Changes |
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On May 18, 2006, Governor Perry signed tax reform legislation that replaces the existing Texas franchise tax with a new franchise tax based on “taxable margin”. The new franchise tax will be in effect for returns due on or after January 1, 2008. This tax reform legislation also closed the so-called “limited partnership loophole”. As a result, beginning with the 2007 tax year, most limited partnerships will pay franchise tax along with corporations and limited liability companies.
A more detailed summary of the new franchise tax may be found at http://www.dechert.com/library/insideTXtaxes1_05-06.pdf. |
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Last updated on May 1, 2008.
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