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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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Subdivisions (9-a) and (9-b) to read as follows: |
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(9-a) The term "cloud computing service" means a |
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service that enables convenient, on-demand network access to a |
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shared pool of configurable computing resources (including |
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networks, servers, storage, applications, and services) that can be |
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rapidly provisioned and released with minimal management effort or |
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cloud computing service provider interaction. "Cloud computing |
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service" does not include telecommunications services and does not |
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include the act of hosting computing resources dedicated to a |
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single purchaser. |
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(9-b) The term "cloud computing service provider" |
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means a person that offers a cloud computing service to a third |
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party. |
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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) A receipt from cloud computing services is a receipt |
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from business done in this state if the customer to whom the service |
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is provided is located 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, 2011. |