Texas Comptroller Manual of Accounts - Fiscal 2025
Revenue Object 3131 – Franchise Tax

Entities doing business in Texas are required to pay the franchise tax. This revenue code, 3131 represents the tax as it was calculated prior to January 1, 2008.

Prior to 2008 entities paid a fixed amount minimum tax or one based on $1,000 of capital income, whichever was greater. In 1975 the basic rate was $4.25 per $1,000 or the minimum tax set at $55. In 1987 it was raised to $5.25 or $68. 1988-89 it was increased to $6.70 or $150. In 1990 it was reduced back to $5.25 or $68.

Beginning in 1992, H.B. 11, 72nd Leg., 1st C.S. changed the tax to $2.50 per $1,000 of net taxable capital and 4.5% of net taxable earned surplus.

A tax credit was given for 25% of sales tax paid on manufacturing equipment beginning 10-1-91, and ending 12-31-92 and 50% beginning 1-1-93, and ending 12-30-93.

H.B. 3, 79th Leg., 3rd C.S. changed calculation of tax. Effective 1-1-08, tax collection moved to new revenue code 3130. This code will remain active in USAS until all residual audit collections and refunds are completed.

May 15 of each year after the beginning of the regular annual period. Exceptions exist, such as if corporation is survivor of a merger which occurs between February 1 and April 30 of the annual report year the tax payment is due November 15.

Amended by S.B. 27, 68th Leg., 2nd C.S. 9-1-84.

Amended by S.B. 235, 69th Leg., R.S.

Amended by H.B. 61, 70th Leg., 2nd C.S.;

Description amended by H.B. 11, 72nd Leg., 1st C.S.

H.B. 3, 79th Leg., 3rd C.S. changed calculation of tax.