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A BILL TO BE ENTITLED
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AN ACT
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relating to the exclusion of certain taxable entities from a |
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combined group for purposes of the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1014, Tax Code, is amended by adding |
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Subsection (j) to read as follows: |
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(j) Notwithstanding any other provision of this section, a |
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taxable entity that provides retail or wholesale electric utilities |
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may not be included as a member of a combined group that includes |
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one or more taxable entities that do not provide retail or wholesale |
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electric utilities if that combined group in the absence of this |
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subsection: |
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(1) would not meet the requirements of Section |
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171.002(c) solely because one or more members of the combined group |
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provide retail or wholesale electric utilities; and |
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(2) would have less than five percent of the combined |
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group's total revenue derived from providing retail or wholesale |
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electric utilities. |
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SECTION 2. It is the intent of the legislature that certain |
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taxable entities that are part of an affiliated group and that |
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provide retail or wholesale electric utilities be disqualified as |
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members of certain combined groups for purposes of the franchise |
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tax. |
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SECTION 3. This Act applies only to a report originally due |
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on or after January 1, 2014. |
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SECTION 4. This Act takes effect September 1, 2013. |