Floor Packet Page No. 26                                                    



	

Amend CSHB 3 by striking Section 171.101(a)(1)(B), Tax Code 

(page 16, lines 3-14), and substituting a new Section 

171.101(a)(1)(B), Tax Code, to read as follows:

			(B)  an amount computed by:                                           

				(i)  determining the taxable entity's total 

revenue from its entire business, under Section 171.1011;

				(ii)  subtracting, at the election of the 

taxable entity, either:  

					(a)  cost of goods sold, as determined 

under Section 171.1012; or 

					(b)  compensation, as determined under 

Section 171.1013; and      

				(iii)  subtracting, in addition to any 

subtractions made under Subparagraph (ii)(a) or (b), compensation, 

as determined under Section 171.1013, paid to an individual during 

the period the individual is serving on active duty as a member of 

the armed forces of the United States if the individual is a 

resident of this state at the time the individual is ordered to 

active duty and the cost of training a replacement for the 

individual; [adding the corporation's stated capital, as defined by 

Article 1.02, Texas Business Corporation Act, and the corporation's 

surplus, to determine the corporation's taxable capital;]