84R17494 ADM-F
By: Parker H.B. No. 2637
Substitute the following for H.B. No. 2637:
By: Springer C.S.H.B. No. 2637
A BILL TO BE ENTITLED
AN ACT
relating to apportionment of margin from receipts from the sale of
locomotives for purposes of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.106, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) The portion of a taxable entity's receipts from the sale
of locomotives sold for use in interstate commerce that are
receipts from business done in this state is determined by
multiplying the taxable entity's total receipts from the sale of
locomotives sold for use in interstate commerce by a fraction, the
numerator of which is the number of miles of railway track in this
state and the denominator of which is the number of miles of railway
track in the United States. In this subsection, "locomotive" means
self-propelled railroad equipment consisting of one or more units
designed to operate on stationary steel rails or electromagnetic
guideways.
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, 2016.