In July 2023, the legislature passed Senate Bill 3, which increased the no tax due threshold and eliminated reporting requirements for certain entities. In response, the Comptroller’s office has changed the way some entities have to report for franchise tax purposes.

No Tax Due threshold has increased to 2.47 million for reports due on or after January 1, 2024.

Reports that are due on or after January 1^st,2024 and are below the 2.47 million thresholds no longer have to file a No Tax Due form but the entity must file a Publication Information Report or Ownership Information Report.

No Tax Due Information Report is Discontinued

Taxable Entities whose annualized Revenue is at or below the “no tax due’ threshold and qualifying new veteran owned businesses are no longer required to file a No Tax Due Report. The form will not be available for any new reporting periods.

There were five types of entities eligible to file a No Tax Due Report. Beginning in 2024, each of these entities will report as follows:

 Taxable Entities with Annualized Total Revenue at or below the No Tax Due Threshold

• Does not owe any tax.
• Is not required to a file a No Tax Due Report
• Still required to file a Public Information Report or Ownership Information Report

Qualifying New Veteran Owned Businesses

• Not required to file a No Tax Due Report for the initial five-year period that it qualifies as a new veteran owned business.
• Not required to file a Public Information Report or Ownership Information Report during the initial 5-year period.

Qualifying Passive Entities

• Must file either the EZ Computation Report or the Long Form.
• Must blacken the appropriate circle that has been added to the taxpayer information section at the top of the form.
• Must sign the report.
• Does not provide information in any other section of the report.
• Does not file a Public Information Report or Ownership Information Report.