Introduced
by
To authorize a licensed food establishment (franchisee) to subtract from the base used to determine liability under the Single Business Tax all franchise fees paid to a franchisor, whether they are to establish or maintain the franchise relationship. The franchise fee would only be deducted only from the SBT base of the franchisee, and could not also be deducted by the franchisor.
Referred to the Committee on Finance
Substitute offered
To replace the previous version of the bill with one which clarifies that the franchise fee would only be deducted only from the SBT base of the franchisee, and could not also be deducted by the franchisor. Because of a recent court decision, were this not made explicit then both parties would be able to deduct the fee.
The substitute passed by voice vote
Amendment offered
by
To tie bar the bill to House Bill 5474, which will ensure that notwithstanding a recent change in the definition contained in the SBT regulations of “sales” versus “gross receipts,” the "sales" of a franchisor would not include franchise fees.
The amendment passed by voice vote
Passed in the Senate 22 to 11 (details)
To authorize a licensed food establishment (franchisee) to subtract from the base used to determine liability under the Single Business Tax all franchise fees paid to a franchisor, whether they are to establish or maintain the franchise relationship. The franchise fee would only be deducted only from the SBT base of the franchisee, and could not also be deducted by the franchisor.
Amendment offered
by
To make certain provisions of the bill retroactive to Jan. 1, 1998.
The amendment failed by voice vote
Passed in the House 97 to 0 (details)
To authorize a licensed food establishment (franchisee) to subtract from the base used to determine liability under the Single Business Tax all franchise fees paid to a franchisor, whether they are to establish or maintain the franchise relationship. The franchise fee would only be deducted only from the SBT base of the franchisee, and could not also be deducted by the franchisor.
