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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 a taxable entity principally engaged in Internet |
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hosting. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.0001, Tax Code, is amended by adding |
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Subdivision (9-a) to read as follows: |
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(9-a) "Internet hosting" means providing: |
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(A) access to computer servers and related |
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devices located in remote, secure data centers; and |
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(B) other similar information technology |
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services over the Internet including: |
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(i) cloud computing; |
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(ii) computing as a service; |
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(iii) data storage; and |
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(iv) hosted e-mail. |
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SECTION 2. Section 171.106, Tax Code, is amended by adding |
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Subsection (g) to read as follows: |
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(g) For a taxable entity receiving more than 50 percent of |
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its total revenue from Internet hosting, receipts from Internet |
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hosting are receipts from business done in this state if the place |
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from which the entity's customer's trade or business is directed or |
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managed is in this state. |
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SECTION 3. 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 4. This Act takes effect September 1, 2009. |