| 2 | | - | (In the Senate - Filed March 14, 2025; April 3, 2025, read |
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| 3 | | - | first time and referred to Committee on Finance; April 16, 2025, |
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| 4 | | - | reported favorably by the following vote: Yeas 14, Nays 0; |
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| 5 | | - | April 16, 2025, sent to printer.) |
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| 6 | | - | Click here to see the committee vote |
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| 7 | 3 | | |
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| 8 | 4 | | |
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| 9 | 5 | | |
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| 10 | 6 | | |
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| 11 | 7 | | A BILL TO BE ENTITLED |
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| 12 | 8 | | AN ACT |
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| 13 | 9 | | relating to the classification of certain entities as primarily |
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| 14 | 10 | | engaged in retail trade for purposes of the franchise tax. |
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| 15 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 16 | 12 | | SECTION 1. Section 171.0001(12), Tax Code, is amended to |
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| 17 | 13 | | read as follows: |
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| 18 | 14 | | (12) "Retail trade" means: |
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| 19 | 15 | | (A) the activities described in Division G of the |
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| 20 | 16 | | 1987 Standard Industrial Classification Manual published by the |
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| 21 | 17 | | federal Office of Management and Budget; |
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| 22 | 18 | | (B) apparel rental activities classified as |
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| 23 | 19 | | Industry 5999 or 7299 of the 1987 Standard Industrial |
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| 24 | 20 | | Classification Manual published by the federal Office of Management |
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| 25 | 21 | | and Budget; |
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| 26 | 22 | | (C) the activities classified as Industry Group |
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| 27 | 23 | | 753 of the 1987 Standard Industrial Classification Manual published |
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| 28 | 24 | | by the federal Office of Management and Budget; |
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| 29 | 25 | | (D) rental-purchase agreement activities |
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| 30 | 26 | | regulated by Chapter 92, Business & Commerce Code; |
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| 31 | 27 | | (E) activities involving the rental or leasing of |
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| 32 | 28 | | tools, party and event supplies, and furniture that are classified |
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| 33 | 29 | | as Industry 7359 of the 1987 Standard Industrial Classification |
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| 34 | 30 | | Manual published by the federal Office of Management and Budget; |
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| 35 | 31 | | [and] |
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| 36 | 32 | | (F) heavy construction equipment rental or |
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| 37 | 33 | | leasing activities classified as Industry 7353 of the 1987 Standard |
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| 38 | 34 | | Industrial Classification Manual published by the federal Office of |
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| 39 | 35 | | Management and Budget; and |
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| 40 | 36 | | (G) activities involving the rental of |
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| 41 | 37 | | industrial uniforms, industrial garments, and industrial linen |
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| 42 | 38 | | supplies that are classified as Industry 7213 or 7218 of the 1987 |
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| 43 | 39 | | Standard Industrial Classification Manual published by the federal |
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| 44 | 40 | | Office of Management and Budget. |
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| 45 | 41 | | SECTION 2. This Act applies only to a report originally due |
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| 46 | 42 | | on or after the effective date of this Act. |
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| 47 | 43 | | SECTION 3. This Act takes effect January 1, 2027. |
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