Bill Text: TX HB1735 | 2013-2014 | 83rd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the exclusion of certain taxable entities from a combined group for purposes of the franchise tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-05-09 - Placed on General State Calendar [HB1735 Detail]
Download: Texas-2013-HB1735-Introduced.html
Bill Title: Relating to the exclusion of certain taxable entities from a combined group for purposes of the franchise tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-05-09 - Placed on General State Calendar [HB1735 Detail]
Download: Texas-2013-HB1735-Introduced.html
83R8122 T | ||
By: Hilderbran | H.B. No. 1735 |
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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. |