OFFlCEOFTHEAlTORNEY QENERALOF.TEXAS
AUSTIN
QUALDC.MANW
Anmmnavaol-
Honorable Wm. J. Laweon
Seoretary of State
Au&in, +*a8
Dear air: op1n10n No. 04098
Be: Eap a oo~poration In liquida-
. tlon prlor to adey
and a.%oalrathe be
Artio1e 7090, R.C.
We aok~m1l4dg4 reoelpt or your requeet for an
oplnlon ot this Departmnt on wh4ther 'a oorporatlon mugt go
into llqul&atIon prior to Janualy,lst to take a&v-tam oi
Art1014 1097, Rerlsed'Clvil Statutes of 1988, or may it hard
the benefita of said Artlols~If ft goes Into llquldatlon ;
prior to May lfit.
Article 7084, Revised Clvll Statutes, 1985, pro-
in part a8 follower
%xoept as herein pmvldsd, every . , . oar;
poratlon . . ., ahall,,on or berore May ldt oi
4aoh~year. pay in edvanoe to the Ssor4taz-yof Stat4
a franohlee tax for the rol.lwlng year. F ."
The franohlss tax in a tax,paid by oo&oratione
f6r the privlLege of doing bmlnesa, and thr~Leglsiatura pro-
ride& that the tax shall be paid on &before Uay 1st for the
r0iLowag year in ailvanoe. This means that the tax year in
80 far as franchise taxes are oonoerned begine on May let and
ends on Aprll'3Gth. %hil'ewe know of no appellate oourt de-
cisions on this qu44tlon, the above holding Is borne put by
the fact that Article 7Q86, Hevised Civil i%atutes, 1985,
provides that new oorporatlona and those
to do business in this State shall pay a
or the charter br permit to and lnoludlng 90th. Gus
decision la also subetantlated by the oorporatlons
are rec_ulr& to pay tho~taxee in adva'noe,end the paying
&ate ia kay 1st. If the taxable period bsglfleJanuary let
and the tax is not paid until May let, then there could not
be a pejment of the tax in advanos.
Said Article 7097, aupra, provicoa ae follows:
*II a corporation is actually in proceso 0r
'liqpiUation, puch corporation shall 031~ be required
to pey'a franohlse tax oeioulated upon the differenoe
.between the amount or stook sotually issued and the
'amount of liquidating dividends aotually paid upon
suoh stock; provided, that the preeldent and Peore-
tary of mob corporation shall make affidavit 44 to the
totai amount of oapltal stock l!muad and ec t,othe
amount of liquidating dividends 44tuallr paid and
that such oorporatlon is in an aotual bona fide
state of.11qu1dat1on."
In view or the fact that the tax is paid for the
period beglmlng M4y 14t ana ending April SOth, you are 4.a-
vised that oorporatlona in llquldatlon prior to May 1st
are entitled to the benetlta or Artlola 9097, Ruprai ..
Trusting that the foregoing fully anmiare your
Inquiry, we are ._
Your13 very truly
mic :1?
n APPROVED
OPINKJN
COMMIITEE