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A BILL TO BE ENTITLED
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AN ACT
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relating to the tax rate for certain retail electric providers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended |
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by adding Section 171.0022 to read as follows: |
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Sec. 171.0022. TAX RATE FOR CERTAIN RETAIL ELECTRIC |
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PROVIDERS. If a taxable entity obtains more than 90 percent of its |
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annual total revenue from its activities in retail or wholesale |
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trade, and the taxable entity owns a retail electric provider as |
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defined by Section 31.002, Utilities Code: |
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(1) the total revenue generated from its activities in |
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retail or wholesale trade is subject to the tax rate found in |
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Section 171.002(b) if the taxable entity meets the requirements |
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under Section 171.002(c)(1) and (2); |
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(2) Section 171.002(c)(3) does not apply; and |
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(3) the total revenue generated from the retail |
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electric provider as defined by Section 31.002, Utilities Code, is |
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subject to the tax rate found in Section 171.002(a). |
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SECTION 2. This Act takes effect January 1, 2010. |