| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 81R10502 KLA-D | |
| 2 | 2 | By: King of Parker H.B. No. 3935 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to the classification of certain entities as primarily | |
| 8 | 8 | engaged in retail or wholesale trade for purposes of the franchise | |
| 9 | 9 | tax. | |
| 10 | 10 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 11 | 11 | SECTION 1. Section 171.002(c), Tax Code, is amended to read | |
| 12 | 12 | as follows: | |
| 13 | 13 | (c) A taxable entity is primarily engaged in retail or | |
| 14 | 14 | wholesale trade only if: | |
| 15 | 15 | (1) the total revenue from its activities in retail or | |
| 16 | 16 | wholesale trade is greater than the total revenue from its | |
| 17 | 17 | activities in trades other than the retail and wholesale trades; | |
| 18 | 18 | (2) except as provided by Subsection (c-1), less than | |
| 19 | 19 | 50 percent of the total revenue from activities in retail or | |
| 20 | 20 | wholesale trade comes from the sale of products it produces or | |
| 21 | 21 | products produced by an entity that is part of an affiliated group | |
| 22 | 22 | to which the taxable entity also belongs; and | |
| 23 | 23 | (3) the taxable entity does not provide retail or | |
| 24 | 24 | wholesale utilities, including [telecommunications services,] | |
| 25 | 25 | electricity[,] or gas, but not including telecommunications | |
| 26 | 26 | services. | |
| 27 | 27 | SECTION 2. This Act applies only to a report originally due | |
| 28 | 28 | on or after the effective date of this Act. | |
| 29 | 29 | SECTION 3. This Act takes effect January 1, 2010. |