Amend SECTION 3.08, CSHB 4, on page 56, line 7 by deleting
Section 171.103(c), Tax Code and inserting a new section
171.103(c), Tax Code as follows:
]L(c)  In apportioning taxable capital of a telephone company, the
comptroller shall adopt rules to apportion to this state receipts
from this state's portion of a transaction within and without this
state.  
(c)  For transactions occurring after the effective date of this
Act, in apportioning taxable capital of a telephone company,
      (1)  all receipts from calls which originate in Texas and
ultimately terminate in Texas shall be sourced to Texas.
      (2)  all receipts from calls which originate in Texas,
ultimately terminate outside of Texas, and are billed to a Texas
location are deemed received from a transaction in interstate
commerce and shall be sourced 55% to Texas.
      (3)  all receipts from calls which originate outside Texas,
ultimately terminate in Texas, and are billed to a Texas location
are deemed received from a transaction in interstate commerce and
shall be sourced 55% to Texas.
      (4)  all receipts from calls which neither originate nor
ultimately terminate in Texas shall not be sourced to Texas.
      Amend SECTION 3.09, CSHB 4, on page 57, line 19 by deleting
Section 171.1032(c), Tax Code and inserting a new section
171.1032(c), Tax Code as follows:
]L(c)  In apportioning taxable earned surplus of a telephone company,
the comptroller shall adopt rules to apportion to this state
receipts from this state's portion of a transaction within and
without this state.  
(c)  For transactions occurring after the effective date of this
Act, in apportioning taxable earned surplus of a telephone company,
      (1)  all receipts from calls which originate in Texas and
ultimately terminate in Texas shall be sourced to Texas.
      (2)  all receipts from calls which originate in Texas,
ultimately terminate outside of Texas, and are billed to a Texas
location are deemed received from a transaction in interstate
commerce and shall be sourced 55% to Texas.
      (3)  all receipts from calls which originate outside Texas,
ultimately terminate in Texas, and are billed to a Texas location
are deemed received from a transaction in interstate commerce and
shall be sourced 55% to Texas.
      (4)  all receipts from calls which neither originate nor
ultimately terminate in Texas shall not be sourced to Texas.