TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 1. CENTRAL ADMINISTRATION

Subchapter A. PRACTICE AND PROCEDURES

1. PRACTICE AND PROCEDURES

34 TAC §1.5

The Comptroller of Public Accounts adopts an amendment to §1.5, concerning the initiation of a hearing, without changes to the proposed text as published in the February 13, 2004, issue of the Texas Register (29 TexReg 1301).

Subsection (c) incorporates the 30-day statutory deadline imposed by House Bill 2425, 78th Regular Legislative Session, 2003. All other adopted amendments to subsections (a), (b), and (c) are for clarity and to update the rule to reflect current practice and procedures.

No comments were received regarding adoption of the amendment.

This amendment is adopted under Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 22, 2004.

TRD-200402059

Martin Cherry

Chief Deputy General Counsel

Comptroller of Public Accounts

Effective date: April 11, 2004

Proposal publication date: February 13, 2004

For further information, please call: (512) 475-0387

34 TAC §1.15

The Comptroller of Public Accounts adopts an amendment to §1.15, concerning reply to the position letter or notice of setting, without changes to the proposed text as published in the February 13, 2004, issue of the Texas Register (29 TexReg 1302).

Subsection (d) was added to implement the written demand for documents provided by House Bill 2425, 78th Regular Legislative Session, 2003. All other amendments to subsections (a), (b), and (c) are for clarity and to update the rule to reflect current practice and procedures.

No comments were received regarding adoption of the amendment.

This amendment is adopted under Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 22, 2004.

TRD-200402058

Martin Cherry

Chief Deputy General Counsel

Comptroller of Public Accounts

Effective date: April 11, 2004

Proposal publication date: February 13, 2004

For further information, please call: (512) 475-0387

Chapter 3. TAX ADMINISTRATION

Subchapter V. FRANCHISE TAX

34 TAC §3.544

The Comptroller of Public Accounts adopts an amendment to §3.544, concerning reports and payments, without changes to the proposed text as published in the January 23, 2004, issue of the Texas Register (29 TexReg 604).

The adopted amendment to subsection (a)(1)(A)(ii), which deletes the reference to the date a foreign corporation's certificate of authority takes effect for purposes of determining the beginning date for foreign corporations, reflects a legislative change made by House Bill 2424, 78th Legislative Session, 2003. The adopted amendment to subsection (a)(1)(B) provides an updated example of an initial report for clarification purposes. The adopted amendment to subsection (h)(2) concerning certain Public Information Report filings, specifies that these reports may be filed electronically, in accordance with House Bill 2424, 78th Legislature, 2003. The adopted amendment to subsection (i) sets out the requirement that a corporation must report within 120 days the results of certain administrative proceedings that affect the corporation's franchise tax liability, as specified in House Bill 2425, 78th Legislature, 2003.

No comments were received regarding adoption of the amendment.

This amendment is adopted under Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

The amendment implements Tax Code §§171.001(b)(2)(B), 171.152, 171.203, and 111.206.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 22, 2004.

TRD-200402060

Martin Cherry

Chief Deputy General Counsel

Comptroller of Public Accounts

Effective date: April 11, 2004

Proposal publication date: January 23, 2004

For further information, please call: (512) 475-0387

34 TAC §3.580

The Comptroller of Public Accounts adopts an amendment to §3.580, concerning credit for hiring persons with disabilities, without changes to the proposed text as published in the January 23, 2004, issue of the Texas Register (29 TexReg 607).

In accordance with House Bill 2424, 78th Legislature, 2003, subsection (c)(2) is to be amended to provide revised limitation guidelines for the credit.

No comments were received regarding adoption of the amendment.

This amendment is adopted under Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

The amendment implements Tax Code §§171.851-171.856.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 22, 2004.

TRD-200402061

Martin Cherry

Chief Deputy General Counsel

Comptroller of Public Accounts

Effective date: April 11, 2004

Proposal publication date: January 23, 2004

For further information, please call: (512) 475-0387