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A BILL TO BE ENTITLED
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AN ACT
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relating to the classification of certain entities as primarily |
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engaged in retail or wholesale trade for purposes of the franchise |
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tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.002(c), Tax Code, is amended to read |
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as follows: |
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(c) A taxable entity is primarily engaged in retail or |
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wholesale trade only if: |
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(1) the total revenue from its activities in retail or |
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wholesale trade is greater than the total revenue from its |
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activities in trades other than the retail and wholesale trades; |
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(2) except as provided by Subsection (c-1), less than |
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50 percent of the total revenue from activities in retail or |
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wholesale trade comes from the sale of products it produces or |
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products produced by an entity that is part of an affiliated group |
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to which the taxable entity also belongs; and |
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(3) the taxable entity does not provide retail or |
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wholesale utilities, including [telecommunications services,] |
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electricity[,] or gas, but not including telecommunications |
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services. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |