TITLE: Relating to a franchise tax exemption for certain cooperatives with a member that has farmer-fruit grower members.

SUMMARY: Relating to a franchise tax exemption for certain cooperatives with a member that has farmer-fruit grower members.

FULL TEXT:
AN ACT relating to a franchise tax exemption for certain cooperatives with a member that has farmer-fruit grower members. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 171.071, Tax Code, is amended to read as follows: Sec. 171.071. EXEMPTION--FARMERS' COOPERATIVE SOCIETY. A cooperative that is either a farmers' cooperative society incorporated under Chapter 51, Agriculture Code, or a cooperative whose single member is a farmers' cooperative described in Section 521(b)(1), Internal Revenue Code, that has at least 500 farmer-fruit grower members, is exempted from the franchise tax. SECTION 2. The amendment made by this Act to Section 171.071, Tax Code, is a clarification of existing law. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution.