81R12485 JE-F
By: Wentworth S.B. No. 1315
A BILL TO BE ENTITLED
AN ACT
relating to the computation of taxable margin for purposes of the
franchise tax by a taxable entity principally engaged in Internet
hosting.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.0001, Tax Code, is amended by adding
Subdivision (9-a) to read as follows:
(9-a) "Internet hosting" means providing:
(A) access to computer servers and related
devices located in remote, secure data centers; and
(B) other similar information technology
services over the Internet including:
(i) cloud computing;
(ii) computing as a service;
(iii) data storage; and
(iv) hosted e-mail.
SECTION 2. Section 171.106, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) For a taxable entity receiving more than 50 percent of
its total revenue from Internet hosting, receipts from Internet
hosting are receipts from business done in this state if the place
from which the entity's customer's trade or business is directed or
managed is in this state.
SECTION 3. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 4. This Act takes effect September 1, 2009.