HB 2126

85(R) - 2017
House Ways & Means
Senate Finance
House Ways & Means
Senate Finance

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral


Angie Chen Button


Brian Birdwell

Bill Caption

Relating to the franchise tax rate applicable to certain taxable entities that sell telephone prepaid calling cards.

Fiscal Notes

No fiscal implication to the State is anticipated

Bill Analysis

Concerning the classification of a taxable entity as one that engages in retail or wholesale, HB 2126 would not exempt the sale of telephones and prepaid calling cards from being considered a business which engages in retail of wholesale.    

Vote Recommendation Notes

Since the sale of telephones and prepaid calling cards cannot directly be considered a telecommunications service, and is a sale of tangible goods, it should be considered a retail trade activity. By allowing firms to be taxed properly, this upholds our principle of limited government, and we support this legislation. However, we would like to note that Texans would greatly benefit if the franchise tax system were phased out over a period of several years.