| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 81R10359 JE-F | |
| 2 | 2 | By: Howard of Fort Bend H.B. No. 4266 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to the computation of taxable margin for purposes of the | |
| 8 | 8 | franchise tax by tier partnerships. | |
| 9 | 9 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 10 | 10 | SECTION 1. Section 171.1015(b), Tax Code, is amended to | |
| 11 | 11 | read as follows: | |
| 12 | 12 | (b) In addition to the tax it is required to pay under this | |
| 13 | 13 | chapter on its own taxable margin, a taxable entity that is an upper | |
| 14 | 14 | tier entity may include, for purposes of calculating its own | |
| 15 | 15 | taxable margin, the total revenue and the related deductions for | |
| 16 | 16 | cost of goods sold or compensation and benefits of a lower tier | |
| 17 | 17 | entity if the lower tier entity submits a report to the comptroller | |
| 18 | 18 | showing the amount of total revenue and the related deductions for | |
| 19 | 19 | cost of goods sold or compensation and benefits that each upper tier | |
| 20 | 20 | entity that owns it should include within the upper tier entity's | |
| 21 | 21 | own taxable margin calculation, according to the ownership interest | |
| 22 | 22 | of the upper tier entity. | |
| 23 | 23 | SECTION 2. This Act applies only to a report originally due | |
| 24 | 24 | on or after the effective date of this Act. | |
| 25 | 25 | SECTION 3. This Act takes effect January 1, 2010. |