Bill Text: TX SB960 | 2013-2014 | 83rd Legislature | Introduced

Texas Senate Bill 960 (Prior Session Legislation)

Introduced

Bill Title: Relating to the franchise tax of certain nonqualified affiliates.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2013-05-06 - Left pending in subcommittee [SB960 Detail]

Download: Texas-2013-SB960-Introduced.html

	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.