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A BILL TO BE ENTITLED
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AN ACT
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relating to the computation of taxable margin for purposes of the |
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franchise tax by tier partnerships. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1015(b), Tax Code, is amended to |
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read as follows: |
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(b) In addition to the tax it is required to pay under this |
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chapter on its own taxable margin, a taxable entity that is an upper |
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tier entity may include, for purposes of calculating its own |
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taxable margin, the total revenue and the related deductions for |
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cost of goods sold or compensation and benefits of a lower tier |
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entity if the lower tier entity submits a report to the comptroller |
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showing the amount of total revenue and the related deductions for |
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cost of goods sold or compensation and benefits that each upper tier |
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entity that owns it should include within the upper tier entity's |
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own taxable margin calculation, according to the ownership interest |
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of the upper tier entity. |
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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. |