For tax years ending on or after January 1, 2024, SB2103/HB1893 (2024) repeals the property measure of the franchise tax (also known as the “minimum measure”), which was previously computed on Schedule G of the franchise and excise tax return. Going forward, the franchise tax will be based on a taxpayer’s net worth, as computed on Schedule F of the return.
SB2103/HB1893 (2024) provides a specific time period during which taxpayers may request a refund of franchise tax paid based on the Schedule G property measure for tax years ending on or after March 31, 2020, for which a return was filed with the department on or after January 1, 2021. If a taxpayer paid franchise tax for any of those tax years based on the property measure (Schedule G), then the taxpayer may request a refund equal to the amount of franchise tax paid based on Schedule G minus the amount of tax the taxpayer would have owed if the taxpayer had paid franchise tax based on Schedule F net worth for such tax year(s).Refund claims filed pursuant to this legislation must be filed between May 15, 2024, and November 30, 2024. For additional information on filing a refund claim, please see Important Notice #24-05.
Reference: SB2103/HB1893 (2024).
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