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  • TPGA

No Tax Due Reporting Going Away in Texas

The Texas franchise tax (a misleading name) is a privilege tax applied to every taxable entity formed or organized in Texas or engaged in business activities within the state.

Effective January 1, 2024, franchise reports submitted on or after this date will reflect changes made by Texas Senate Bill (SB) 3, 88th Legislature, Second Called Session. These changes increase the no-tax due revenue threshold to $2.47 million.

Additionally, the Comptroller's office is now prohibited from mandating taxable entities with annualized total revenue at or below this threshold to submit a No Tax Due Report.

As a result, taxable entities falling within this revenue bracket and qualifying new veteran-owned businesses are no longer obliged to file a No Tax Due Report. Consequently, the Comptroller's Office has decided to discontinue the No Tax Due Report for the 2024 report year and onwards, with the form not being available for any new reporting periods.

Despite the exemption from filing a no-tax due report, it's important to note that these businesses are still required to submit either a Public Information Report (PIR) or an Ownership Information Report (OIR).

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