By: Villarreal H.B. No. 3509
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
Subdivisions (9-a) and (9-b) to read as follows:
(9-a) The term "cloud computing service" means a
service that enables convenient, on-demand network access to a
shared pool of configurable computing resources (including
networks, servers, storage, applications, and services) that can be
rapidly provisioned and released with minimal management effort or
cloud computing service provider interaction. "Cloud computing
service" does not include telecommunications services and does not
include the act of hosting computing resources dedicated to a
single purchaser.
(9-b) The term "cloud computing service provider"
means a person that offers a cloud computing service to a third
party.
SECTION 2. Section 171.106, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) A receipt from cloud computing services is a receipt
from business done in this state if the customer to whom the service
is provided is located 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, 2011.