83R8122 T
By: Fraser S.B. No. 960
A BILL TO BE ENTITLED
AN ACT
relating to the franchise tax of certain nonqualified affiliates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) Section 171.1014, Tax Code, is amended by
adding Subsection (j) to read as follows:
(j)(1) Notwithstanding any other provision of this
chapter, a nonqualified affiliate that would, except as otherwise
provided by this Subsection (j)(1), be included in a combined group
with a qualified affiliate may not be included in such combined
group if:
(A) greater than 50 percent of the threshold
amount is from activities in retail or wholesale trade;
(B) less than 50 percent of the threshold amount
is from the sale of products produced by any entity that is included
in an affiliated group with such qualified affiliate; and
(C) less than 5 percent of the threshold amount
is from providing retail or wholesale electric utilities.
(2) For purposes of this Section:
(A) a nonqualified affiliate is an individual
taxable entity that provides retail or wholesale electric
utilities;
(B) a qualified affiliate is an individual
taxable entity that does not provide retail or wholesale electric
utilities; and
(C) the threshold amount is the total revenue
that would be determined under Subsection (c), provided that
Subsection (j)(1) does not apply to the determination of total
revenue for purposes of this Subsection (j)(2)(C).
(b) This section applies only to a report originally due on
or after January 1, 2014.
SECTION 2. This Act takes effect September 1, 2013.