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