84R10847 ADM-F
By: Parker 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) A taxable entity's margin that is derived from receipts
from the sale of locomotives sold for use in interstate commerce is
apportioned to this state to determine the amount of the tax imposed
under Section 171.002 by multiplying the taxable entity's total
margin from 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.