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On June 15, 2015, Texas Governor Greg Abbott signed H.B. 32, which permanently reduces the Texas Franchise Tax (Margin Tax) rates by 25% to 0.375% of taxable margin for taxpayers primarily engaged in retail or wholesale trade and to 0.75% of taxable margin for all other taxpayers. The reduction is applicable to tax reports originally due on or after January 1, 2016. Prior to H.B. 32, the 2016 report year tax rates were due to revert to their general rates of 0.5% for retail or wholesale trade businesses and 1% for all other taxpayers. For reports due in 2015, the rates were temporarily reduced to 0.475% for retailers or wholesalers and 0.95% for other taxpayers. For reports due on or after January 1, 2016, H.B. 32 sets an EZ tax rate of 0.331% and allows a taxpayer to elect the EZ Computation if its revenue is no more than $20 million. For reports due in 2015, the Franchise Tax imposes a rate of 0.575% for those entities with $10 million or less in total revenue electing the EZ Computation.