| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 81R12485 JE-F | |
| 2 | 2 | By: Wentworth S.B. No. 1315 | |
| 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 a taxable entity principally engaged in Internet | |
| 9 | 9 | hosting. | |
| 10 | 10 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 11 | 11 | SECTION 1. Section 171.0001, Tax Code, is amended by adding | |
| 12 | 12 | Subdivision (9-a) to read as follows: | |
| 13 | 13 | (9-a) "Internet hosting" means providing: | |
| 14 | 14 | (A) access to computer servers and related | |
| 15 | 15 | devices located in remote, secure data centers; and | |
| 16 | 16 | (B) other similar information technology | |
| 17 | 17 | services over the Internet including: | |
| 18 | 18 | (i) cloud computing; | |
| 19 | 19 | (ii) computing as a service; | |
| 20 | 20 | (iii) data storage; and | |
| 21 | 21 | (iv) hosted e-mail. | |
| 22 | 22 | SECTION 2. Section 171.106, Tax Code, is amended by adding | |
| 23 | 23 | Subsection (g) to read as follows: | |
| 24 | 24 | (g) For a taxable entity receiving more than 50 percent of | |
| 25 | 25 | its total revenue from Internet hosting, receipts from Internet | |
| 26 | 26 | hosting are receipts from business done in this state if the place | |
| 27 | 27 | from which the entity's customer's trade or business is directed or | |
| 28 | 28 | managed is in this state. | |
| 29 | 29 | SECTION 3. This Act applies only to a report originally due | |
| 30 | 30 | on or after the effective date of this Act. | |
| 31 | 31 | SECTION 4. This Act takes effect September 1, 2009. |