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.
First Regular Session H.B. 2838
LIVINGSTON FLOOR AMENDMENT
SENATE AMENDMENTS TO H.B. 2838
(Reference to FINANCE Committee amendment)
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