Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Franchise Tax Filing topic
No spam. Unsubscribe anytime.
Committee approves returning franchise tax filings to Secretary of State
Summary
Senate Bill 525 would transfer franchise tax filing back to the Secretary of State and permit DFA to share 2021 filing information; DFA presented an estimate and said it does not anticipate a revenue impact. The committee approved the bill by voice vote.
Senate Bill 525, presented to the Senate Revenue & Tax Committee, would transfer franchise tax filing responsibility back to the Secretary of State and authorize the Department of Finance and Administration (DFA) to share 2021 filing information with the Secretary of State.
Senator Desmain, the bill sponsor in committee, said filers and preparers found the Secretary of State system simpler because it prefilled information and allowed batch preparation, saving substantial time compared with the DFA ATAP system. "In theory, I think it's a great idea for it to transfer to DFA," Desmain said when describing the prior transfer to DFA; the bill would now flip that function back to the Secretary of State.
Paul Gehring of DFA said a fiscal-impact statement was prepared and that DFA did not anticipate any revenue impact from the change. Gehring said the changeover had been scheduled for May 1 and that DFA employees who worked on franchise tax could be reassigned within the agency if the bill becomes law. Charlie Collins of DFA said he had no additional comments.
A committee member moved to pass the bill; Senator Johnson seconded. The committee approved SB525 on a voice vote.
DFA's presentation framed the change as restoring a more automated, prefilled filing experience for filers and preparers while allowing necessary interagency data sharing for the transition.
