Bill Number: H.B. 2838
Livingston
Floor Amendment
Reference
to: FINANCE Committee amendment
Amendment
drafted by: Leg Council
FLOOR
AMENDMENT EXPLANATION
1. Removes the retroactive applicability.
2. Requires a partnership or S corporation
that intends to make the entity-level election to notify all partners or
shareholders who are individuals, estates or trusts of the intent to make the
election and that each partner or shareholder who is an individual, estate or
trust has the right to opt out of the election.
3. Requires the notice to partners or
shareholders to allow each partner or shareholder who is an individual, estate
or trust to notify the partnership or S corporation at least 60 days after
receiving the notice that the partner or shareholder is exercising their right
to opt out of the election.
4. Includes a partner or shareholder who is
an individual, estate or trust in the entity-level election if they did not
respond to the notice within the 60-day period or if they waive the right to
opt out.
5. Specifies that the entity-level election
does not apply to:
a)
partners or
shareholders that are not individuals, estates or trusts; and
b)
partners or
shareholders who are individuals, estates or trusts and who opt out or waive
the right to opt out of the entity-level election.
6. Excludes, from the entity-level tax, the
portion of taxable income attributable to:
a)
a partner or
shareholder that is not an individual, estate or trust; and
b)
a partner or
shareholder who is an individual, estate or trust and who opts out or waives
the right to opt out of the entity-level election.
7. Makes technical changes.
Page 1, line
5, after "purposes" insert a comma
Between
lines 7 and 8, insert:
"Line
27, strike "2017" insert "2021""
Between
lines 15 and 16, insert:
"Line
34, strike "chapter" insert "title""
Line 21,
after "5" insert ", insert:
"C. The election under subsection A of this section does not
apply to the following:
1.
Partners or shareholders that are not individuals, estates or trusts. The
portion of the taxable income attributable to a partner or shareholder that is
not an individual, estate or trust is not included in the entity-level
tax under subsection A of this section.
2.
Partners or shareholders who are individuals, estates or trusts and who opt out
or waive the right to opt out of the election pursuant to subsection D of this
section. The portion of the taxable income attributable to a partner or
shareholder who is an individual, estate or trust and who opts out or waives
the right to opt out of the election pursuant to subsection D of this section
is not included in the entity-level tax under subsection A of this
section.
D. A
partnership or S corporation that intends to make the election under subsection
A of this section shall notify all partners or shareholders who are individuals,
estates or trusts of the intent to make the election and that each partner or
shareholder who is an individual, estate or trust has the right to opt out of
the election. The notice shall allow each partner or shareholder who is an
individual, estate or trust at least sixty days after receiving the notice to
notify the partnership or S corporation that the partner or shareholder who is
an individual, estate or trust is exercising the partner's or
shareholder's right to opt out of the election. If the partner or
shareholder who is an individual, estate or trust does not respond within the
sixty-day period or waives the right to opt out, the partner or
shareholder will be included in the election.""
Page 1, line
23, after the first comma insert "line 43, strike "2017"
insert "2021""
Page 2, line
6, after the first comma insert "line 37, strike "2017"
insert "2021""
Line 11,
after the first comma insert "line 4, strike "2017"
insert "2021""
Between
lines 19 and 20, insert:
"Line
23, after "2021" insert a period strike remainder of line
Strike line
24"
Amend title to conform