reglab/statecodes huggingface dataset:
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter E. Reports and Records › Section 171.209. Right of Owner to Examine or Receive Reports

Sec. 171.209.  RIGHT OF OWNER TO EXAMINE OR RECEIVE REPORTS.  If an owner of a taxable entity on whom the franchise tax is imposed presents evidence of the ownership to the comptroller, the person is entitled to examine or receive a copy of an initial or annual report that is filed under Section 171.201 or 171.202 and that relates to the taxable entity.
Acts 1981, 67th Leg., p. 1703, ch. 389, Sec. 1, eff. Jan. 1, 1982.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 7, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter E. Reports and Records › Section 171.210. Permitted Use of Confidential Information

Sec. 171.210.  PERMITTED USE OF CONFIDENTIAL INFORMATION.  (a)  To enforce this chapter, the comptroller or attorney general may use information made confidential by this chapter.
(b)  The comptroller or attorney general may authorize the use of the confidential information in a judicial proceeding in which the state is a party.  The comptroller or attorney general may authorize examination of the confidential information by:
(1)  another state officer of this state;
(2)  a law enforcement official of this state; or
(3)  a tax official of another state or an official of the federal government if the other state or the federal government has a reciprocal arrangement with this state.
Acts 1981, 67th Leg., p. 1703, ch. 389, Sec. 1, eff. Jan. 1, 1982.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 7, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter E. Reports and Records › Section 171.211. Examination of Records

Sec. 171.211.  EXAMINATION OF RECORDS.  To determine the franchise tax liability of a taxable entity, the comptroller may investigate or examine the records of the taxable entity.
Acts 1981, 67th Leg., p. 1703, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1989, 71st Leg., ch. 584, Sec. 109, eff. Sept. 1, 1989.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 7, eff. January 1, 2008.
Sec. 171.212.  REPORT OF CHANGES TO FEDERAL INCOME TAX RETURN.  (a)  A taxable entity must file an amended report under this chapter if:
(1)  the taxable entity's taxable margin is changed as the result of an audit or other adjustment by the Internal Revenue Service or another competent authority; or
(2)  the taxable entity files an amended federal income tax return or other return that changes the taxable entity's taxable margin.
(b)  The taxable entity shall file the amended report under Subsection (a)(1) not later than the 120th day after the date the revenue agent's report or other adjustment is final.  For purposes of this subsection, a revenue agent's report or other adjustment is final on the date on which all administrative appeals with the Internal Revenue Service or other competent authority have been exhausted or waived.
(c)  The taxable entity shall file the amended report under Subsection (a)(2) not later than the 120th day after the date the taxable entity files the amended federal income tax return or other return.  For purposes of this subsection, a taxable entity is considered to have filed an amended federal income tax return if the taxable entity is a member of an affiliated group during a period in which an amended consolidated federal income tax report is filed.
(d)  If a taxable entity fails to comply with this section, the taxable entity is liable for a penalty of 10 percent of the tax that should have been reported under this section and that had not previously been reported to the comptroller.  The penalty prescribed by this subsection is in addition to any other penalty provided by law.
Added by Acts 1997, 75th Leg., ch. 1185, Sec. 14.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 7, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter E. Reports and Records › Section 171.2125. Calculating Cost of Goods or Compensation in Professional Employer Services Arrangements

Sec. 171.2125.  CALCULATING COST OF GOODS OR COMPENSATION IN PROFESSIONAL EMPLOYER SERVICES ARRANGEMENTS.  In calculating cost of goods sold or compensation, a taxable entity that is a client of a professional employer organization shall rely on information provided by the professional employer organization on a form promulgated by the comptroller or an invoice.
Added by Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 29, eff. January 1, 2008.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 117 (S.B. 1286), Sec. 27, eff. September 1, 2013.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.251. Forfeiture of Corporate Privileges

Sec. 171.251.  FORFEITURE OF CORPORATE PRIVILEGES.  The comptroller shall forfeit the corporate privileges of a corporation on which the franchise tax is imposed if the corporation:
(1)  does not file, in accordance with this chapter and within 45 days after the date notice of forfeiture is mailed or provided by electronic means, a report required by this chapter;
(2)  does not pay, within 45 days after the date notice of forfeiture is mailed or provided by electronic means, a tax imposed by this chapter or does not pay, within those 45 days, a penalty imposed by this chapter relating to that tax; or
(3)  does not permit the comptroller to examine under Section 171.211 the corporation's records.
Acts 1981, 67th Leg., p. 1703, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 10, art. 3, Sec. 5, eff. Sept. 1, 1984;  Acts 1989, 71st Leg., ch. 584, Sec. 110, eff. Sept. 1, 1989;  Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.19, eff. Jan. 1, 1992;  Acts 1993, 73rd Leg., ch. 546, Sec. 10, eff. Jan. 1, 1994.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 1040 (S.B. 61), Sec. 3, eff. September 1, 2023.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.2515. Forfeiture of Right of Taxable Entity to Transact Business in This State

Sec. 171.2515.  FORFEITURE OF RIGHT OF TAXABLE ENTITY TO TRANSACT BUSINESS IN THIS STATE.  (a)  The comptroller may, for the same reasons and using the same procedures the comptroller uses in relation to the forfeiture of the corporate privileges of a corporation, forfeit the right of a taxable entity to transact business in this state.
(b)  The provisions of this subchapter, including Section 171.255, that apply to the forfeiture of corporate privileges apply to the forfeiture of a taxable entity's right to transact business in this state.
Added by Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 9, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.252. Effects of Forfeiture

Sec. 171.252.  EFFECTS OF FORFEITURE.  If the corporate privileges of a corporation are forfeited under this subchapter:
(1)  the corporation shall be denied the right to sue or defend in a court of this state;  and
(2)  each director or officer of the corporation is liable for a debt of the corporation as provided by Section 171.255 of this code.
Acts 1981, 67th Leg., p. 1704, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.253. Suit on Cause of Action Arising Before Forfeiture

Sec. 171.253.  SUIT ON CAUSE OF ACTION ARISING BEFORE FORFEITURE.  In a suit against a corporation on a cause of action arising before the forfeiture of the corporate privileges of the corporation, affirmative relief may not be granted to the corporation unless its corporate privileges are revived under this chapter.
Acts 1981, 67th Leg., p. 1704, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.254. Exception to Forfeiture

Sec. 171.254.  EXCEPTION TO FORFEITURE.  The forfeiture of the corporate privileges of a corporation does not apply to the privilege to defend in a suit to forfeit the corporation's charter or certificate of authority.
Acts 1981, 67th Leg., p. 1704, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.255. Liability of Director and Officers

Sec. 171.255.  LIABILITY OF DIRECTOR AND OFFICERS.  (a)  If the corporate privileges of a corporation are forfeited for the failure to file a report or pay a tax or penalty, each director or officer of the corporation is liable for each debt of the corporation that is created or incurred in this state after the date on which the report, tax, or penalty is due and before the corporate privileges are revived.  The liability includes liability for any tax or penalty imposed by this chapter on the corporation that becomes due and payable after the date of the forfeiture.
(b)  The liability of a director or officer is in the same manner and to the same extent as if the director or officer were a partner and the corporation were a partnership.
(c)  A director or officer is not liable for a debt of the corporation if the director or officer shows that the debt was created or incurred:
(1)  over the director's objection;  or
(2)  without the director's knowledge and that the exercise of reasonable diligence to become acquainted with the affairs of the corporation would not have revealed the intention to create the debt.
(d)  If a corporation's charter or certificate of authority and its corporate privileges are forfeited and revived under this chapter, the liability under this section of a director or officer of the corporation is not affected by the revival of the charter or certificate and the corporate privileges.
Acts 1981, 67th Leg., p. 1704, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.256. Notice of Forfeiture

Sec. 171.256.  NOTICE OF FORFEITURE.  (a)  If the comptroller proposes to forfeit the corporate privileges of a corporation, the comptroller shall notify the corporation that the forfeiture will occur without a judicial proceeding unless the corporation:
(1)  files, within the time established by Section 171.251 of this code, the report to which that section refers;  or
(2)  pays, within the time established by Section 171.251 of this code, the delinquent tax and penalty to which that section refers.
(b)  The notice shall be written or printed and shall be verified by the seal of the comptroller's office.
(c)  The comptroller shall mail the notice or send the notice by electronic means, to the corporation at least 45 days before the forfeiture of corporate privileges.  The notice shall be:
(1)  addressed to the corporation and mailed to the address named in the corporation's charter as its principal place of business or to another known place of business of the corporation if the notice is mailed to the corporation; or
(2)  sent to the corporation by electronic means using the contact information provided to the comptroller by the corporation as shown in the records of the comptroller if the notice is sent to the corporation by electronic means.
(d)  The comptroller shall keep at the comptroller's office a record of the date on which the notice is mailed or sent by electronic means.  For the purposes of this chapter, the notice and the record of the date the notice was mailed or sent by electronic means constitute legal and sufficient notice of the forfeiture.
Acts 1981, 67th Leg., p. 1704, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1993, 73rd Leg., ch. 546, Sec. 11, eff. Jan. 1, 1994.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 1040 (S.B. 61), Sec. 4, eff. September 1, 2023.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.257. Judicial Proceeding Not Required for Forfeiture

Sec. 171.257.  JUDICIAL PROCEEDING NOT REQUIRED FOR FORFEITURE.  The forfeiture of the corporate privileges of a corporation is effected by the comptroller without a judicial proceeding.
Acts 1981, 67th Leg., p. 1705, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.258. Revival of Corporate Privileges

Sec. 171.258.  REVIVAL OF CORPORATE PRIVILEGES.  The comptroller shall revive the corporate privileges of a corporation if the corporation, before the forfeiture of its charter or certificate of authority, pays any tax, penalty, or interest due under this chapter.
Acts 1981, 67th Leg., p. 1705, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.259. Banking Corporations and Savings and Loan Associations

Sec. 171.259.  BANKING CORPORATIONS AND SAVINGS AND LOAN ASSOCIATIONS.  (a)  Except as provided by Subsection (b), this subchapter does not apply to a banking corporation that is organized under the laws of this state or under federal law and has its main office in this state.
(b)  The banking commissioner shall appoint a conservator under Subtitle A, Title 3, Finance Code, to pay the franchise tax of a banking corporation that is organized under the laws of this state and that the commissioner certifies as being delinquent in the payment of the corporation's franchise tax.
Added by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 3, part B, Sec. 5, eff. May 1, 1985.  Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.20, eff. Jan. 1, 1992;  Acts 1999, 76th Leg., ch. 184, Sec. 3, eff. Jan. 1, 2000.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter F. Forfeiture of Corporate and Business Privileges › Section 171.260. Savings and Loan Association

Sec. 171.260.  SAVINGS AND LOAN ASSOCIATION.  (a)  Except as provided by Subsection (b), this subchapter does not apply to a savings and loan association that is organized under the laws of this state or under federal law and has its main office in this state.
(b)  The savings and mortgage lending commissioner shall appoint a conservator under Subtitle B or C, Title 3, Finance Code, to pay the franchise tax of a savings and loan association that is organized under the laws of this state and that the commissioner certifies as being delinquent in the payment of the association's franchise tax.
Added by Acts 1999, 76th Leg., ch. 184, Sec. 4, eff. Jan. 1, 2000.  Amended by Acts 2001, 77th Leg., ch. 1263, Sec. 62, eff. Jan. 1, 2002.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.067, eff. September 1, 2007.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.301. Grounds for Forfeiture of Charter or Certificate of Authority

Sec. 171.301.  GROUNDS FOR FORFEITURE OF CHARTER OR CERTIFICATE OF AUTHORITY.  It is a ground for the forfeiture of a corporation's charter or certificate of authority if:
(1)  the corporate privileges of the corporation are forfeited under this chapter and the corporation does not pay, within 120 days after the date the corporate privileges are forfeited, the amount necessary for the corporation to revive under this chapter its corporate privileges;  or
(2)  the corporation does not permit the comptroller to examine the corporation's records under Section 171.211 of this code.
Acts 1981, 67th Leg., p. 1705, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1989, 71st Leg., ch. 584, Sec. 111, eff. Sept. 1, 1989.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.3015. Forfeiture of Certificate or Registration of Taxable Entity

Sec. 171.3015.  FORFEITURE OF CERTIFICATE OR REGISTRATION OF TAXABLE ENTITY.  The comptroller may, for the same reasons and using the same procedures the comptroller uses in relation to the forfeiture of a corporation's charter or certificate of authority, forfeit the certificate or registration of a taxable entity.
Added by Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 31, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.302. Certification by Comptroller

Sec. 171.302.  CERTIFICATION BY COMPTROLLER.  After the 120th day after the date that the corporate privileges of a corporation are forfeited under this chapter, the comptroller shall certify the name of the corporation to the attorney general and the secretary of state.
Acts 1981, 67th Leg., p. 1705, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.303. Suit for Judicial Forfeiture

Sec. 171.303.  SUIT FOR JUDICIAL FORFEITURE.  On receipt of the comptroller's certification, the attorney general shall bring suit to forfeit the charter or certificate of authority of the corporation if a ground exists for the forfeiture of the charter or certificate.
Acts 1981, 67th Leg., p. 1705, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.304. Record of Judicial Forfeiture

Sec. 171.304.  RECORD OF JUDICIAL FORFEITURE.  (a)  If a district court forfeits a corporation's charter or certificate of authority under this chapter, the clerk of the court shall promptly mail to the secretary of state a certified copy of the court's judgment.  On receipt of the copy of the judgment, the secretary of state shall inscribe on the corporation's record at the secretary's office the words "Judgment of Forfeiture" and the date of the judgment.
(b)  If an appeal of the judgment is perfected, the clerk of the court shall promptly certify to the secretary of state that the appeal has been perfected.  On receipt of the certification, the secretary of state shall inscribe on the corporation's record at the secretary's office the word "Appealed" and the date on which the appeal was perfected.
(c)  If final disposition of an appeal is made, the clerk of the court making the disposition shall promptly certify to the secretary of state the type of disposition made and the date of the disposition.  On receipt of the certification, the secretary of state shall inscribe on the corporation's record at the secretary's office a brief note of the type of final disposition made and the date of the disposition.
Acts 1981, 67th Leg., p. 1705, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.305. Revival of Charter or Certificate of Authority After Judicial Forfeiture

Sec. 171.305.  REVIVAL OF CHARTER OR CERTIFICATE OF AUTHORITY AFTER JUDICIAL FORFEITURE.  A corporation whose charter or certificate of authority is judicially forfeited under this chapter is entitled to have its charter or certificate revived and to have its corporate privileges revived if:
(1)  the corporation files each report that is required by this chapter and that is delinquent;
(2)  the corporation pays the tax, penalty, and interest that is imposed by this chapter and that is due at the time the suit under Section 171.306 of this code to set aside forfeiture is filed;  and
(3)  the forfeiture of the corporation's charter or certificate is set aside in a suit under Section 171.306 of this code.
Acts 1981, 67th Leg., p. 1706, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.306. Suit to Set Aside Judicial Forfeiture

Sec. 171.306.  SUIT TO SET ASIDE JUDICIAL FORFEITURE.  If a corporation's charter or certificate of authority is judicially forfeited under this chapter, a stockholder, director, or officer of the corporation at the time of the forfeiture of the charter or certificate or of the corporate privileges of the corporation may bring suit in a district court of Travis County in the name of the corporation to set aside the forfeiture of the charter or certificate.  The suit must be in the nature of a bill of review.  The secretary of state and attorney general must be made defendants in the suit.
Acts 1981, 67th Leg., p. 1706, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.307. Record of Suit to Set Aside Judicial Forfeiture

Sec. 171.307.  RECORD OF SUIT TO SET ASIDE JUDICIAL FORFEITURE.  If a court under this chapter sets aside the forfeiture of a corporation's charter or certificate of authority, the secretary of state shall inscribe on the corporation's record in the secretary's office the words "Charter Revived by Court Order" or "Certificate Revived by Court Order," a citation to the suit, and the date of the court's judgment.
Acts 1981, 67th Leg., p. 1706, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.308. Corporate Privileges After Judicial Forfeiture Is Set Aside

Sec. 171.308.  CORPORATE PRIVILEGES AFTER JUDICIAL FORFEITURE IS SET ASIDE.  If a court under this chapter sets aside the forfeiture of a corporation's charter or certificate of authority, the comptroller shall revive the corporate privileges of the corporation and shall inscribe on the corporation's record in the comptroller's office a note of the revival.
Acts 1981, 67th Leg., p. 1706, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.309. Forfeiture by Secretary of State

Sec. 171.309.  FORFEITURE BY SECRETARY OF STATE.  The secretary of state may forfeit the charter, certificate, or registration of a taxable entity if:
(1)  the secretary receives the comptroller's certification under Section 171.302; and
(2)  the taxable entity does not revive its forfeited privileges within 120 days after the date that the privileges were forfeited.
Acts 1981, 67th Leg., p. 1707, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 10, art. 3, Sec. 6, eff. Sept. 1, 1984.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 32, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.310. Judicial Proceeding Not Required for Forfeiture by Secretary of State

Sec. 171.310.  JUDICIAL PROCEEDING NOT REQUIRED FOR FORFEITURE BY SECRETARY OF STATE.  The forfeiture by the secretary of state of a corporation's charter or certificate of authority under this chapter is effected without a judicial proceeding.
Acts 1981, 67th Leg., p. 1707, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.311. Record of Forfeiture by Secretary of State

Sec. 171.311.  RECORD OF FORFEITURE BY SECRETARY OF STATE.  The secretary of state shall effect a forfeiture of a corporation's charter or certificate of authority under this chapter by inscribing on the corporation's record in the secretary's office the words "Charter Forfeited" or "Certificate Forfeited," the date on which this inscription is made, and a citation to this chapter as authority for the forfeiture.
Acts 1981, 67th Leg., p. 1707, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.312. Revival of Charter or Certificate of Authority After Forfeiture by Secretary of State

Sec. 171.312.  REVIVAL OF CHARTER OR CERTIFICATE OF AUTHORITY AFTER FORFEITURE BY SECRETARY OF STATE.  A corporation whose charter or certificate of authority is forfeited under this chapter by the secretary of state is entitled to have its charter or certificate revived and to have its corporate privileges revived if:
(1)  the corporation files each report that is required by this chapter and that is delinquent;
(2)  the corporation pays the tax, penalty, and interest that is imposed by this chapter and that is due at the time the request under Section 171.313 of this code to set aside forfeiture is made;  and
(3)  the forfeiture of the corporation's charter or certificate is set aside in a proceeding under Section 171.313 of this code.
Acts 1981, 67th Leg., p. 1707, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.3125. Revival of Certificate or Registration of Taxable Entity After Forfeiture by Secretary of State

Sec. 171.3125.  REVIVAL OF CERTIFICATE OR REGISTRATION OF TAXABLE ENTITY AFTER FORFEITURE BY SECRETARY OF STATE.  (a)  The secretary of state may, using the same procedures the secretary uses in relation to the revival of a corporation's charter or certificate, revive the certificate or registration of a taxable entity.
(b)  The secretary of state may adopt rules to implement this section.
Added by Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 31, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.313. Proceeding to Set Aside Forfeiture by Secretary of State

Sec. 171.313.  PROCEEDING TO SET ASIDE FORFEITURE BY SECRETARY OF STATE.  (a)  If a corporation's charter or certificate of authority is forfeited under this chapter by the secretary of state, a stockholder, director, or officer of the corporation at the time of the forfeiture of the charter or certificate or of the corporate privileges of the corporation may request in the name of the corporation that the secretary of state set aside the forfeiture of the charter or certificate.
(b)  If a request is made, the secretary of state shall determine if each delinquent report has been filed and any delinquent tax, penalty, or interest has been paid.  If each report has been filed and the tax, penalty, or interest has been paid, the secretary shall set aside the forfeiture of the corporation's charter or certificate of authority.
Acts 1981, 67th Leg., p. 1707, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.314. Corporate Privileges After Forfeiture by Secretary of State Is Set Aside

Sec. 171.314.  CORPORATE PRIVILEGES AFTER FORFEITURE BY SECRETARY OF STATE IS SET ASIDE.  If the secretary of state sets aside under this chapter the forfeiture of a corporation's charter or certificate of authority, the comptroller shall revive the corporate privileges of the corporation.
Acts 1981, 67th Leg., p. 1708, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.315. Use of Corporate Name After Revival of Charter or Certificate of Authority

Sec. 171.315.  USE OF CORPORATE NAME AFTER REVIVAL OF CHARTER OR CERTIFICATE OF AUTHORITY.  If a corporation's charter or certificate of authority is forfeited under this chapter by the secretary of state and if the corporation requests the secretary to set aside the forfeiture under Section 171.313 of this code, the corporation shall determine from the secretary whether the corporation's name is available for use.  If the name is not available, the corporation shall amend its charter or certificate to change its name.
Acts 1981, 67th Leg., p. 1708, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.316. Banking Corporations

Sec. 171.316.  BANKING CORPORATIONS.  This subchapter does not apply to a banking corporation that is organized under the laws of this state or under federal law and has its main office in this state.
Added by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 3, part B, Sec. 6, eff. May 1, 1985.  Amended by Acts 1999, 76th Leg., ch. 184, Sec. 5, eff. Jan. 1, 2000.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter G. Forfeiture of Charter or Certificate of Authority › Section 171.317. Savings and Loan Associations

Sec. 171.317.  SAVINGS AND LOAN ASSOCIATIONS.  This subchapter does not apply to a savings and loan association that is organized under the laws of this state or under federal law and has its main office in this state.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.21, eff. Jan. 1, 1992.  Amended by Acts 1999, 76th Leg., ch. 184, Sec. 6, eff. Jan. 1, 2000.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter H. Enforcement › Section 171.351. Venue of Suit to Enforce Chapter

Sec. 171.351.  VENUE OF SUIT TO ENFORCE CHAPTER.  Venue of a civil suit against a taxable entity to enforce this chapter is either in a county where the taxable entity's principal office is located according to its charter or certificate of authority or in Travis County.
Acts 1981, 67th Leg., p. 1708, ch. 389, Sec. 1, eff. Jan. 1, 1982.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 10, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter H. Enforcement › Section 171.352. Authority to Restrain or Enjoin

Sec. 171.352.  AUTHORITY TO RESTRAIN OR ENJOIN.  To enforce this chapter, a court may restrain or enjoin a violation of this chapter.
Acts 1981, 67th Leg., p. 1708, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter H. Enforcement › Section 171.353. Appointment of Receiver

Sec. 171.353.  APPOINTMENT OF RECEIVER.  If a court forfeits a taxable entity's charter or certificate of authority, the court may appoint a receiver for the taxable entity and may administer the receivership under the laws relating to receiverships.
Acts 1981, 67th Leg., p. 1708, ch. 389, Sec. 1, eff. Jan. 1, 1982.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 11, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter H. Enforcement › Section 171.354. Agent for Service of Process

Sec. 171.354.  AGENT FOR SERVICE OF PROCESS.  Each taxable entity on which a tax is imposed by this chapter shall designate a resident of this state as the taxable entity's agent for the service of process.
Acts 1981, 67th Leg., p. 1708, ch. 389, Sec. 1, eff. Jan. 1, 1982.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 12, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter H. Enforcement › Section 171.355. Service of Process on Secretary of State

Sec. 171.355.  SERVICE OF PROCESS ON SECRETARY OF STATE.  (a)  Legal process may be served on a domestic corporation by serving it on the secretary of state if the process relates to the forfeiture of the corporation's charter or to the collection of a tax or penalty imposed by this chapter and:
(1)  if the local agent of the corporation or if the officers named in the corporation's charter or annual report on file with the secretary of state do not reside or cannot be located in the county in which the corporation's principal office, as stated in the charter, is located;  or
(2)  if the principal office of the corporation is not maintained or cannot be located in the county in which the charter states that the office is located.
(b)  Complete and valid service of process is made on a corporation through the secretary of state by delivering duplicate copies of the process to the secretary of state or the deputy secretary of state.
(c)  On receipt of legal process under this section, the secretary of state promptly shall forward to the corporation by registered mail a copy of the process.  The copy of the process shall be mailed to the address named in the corporation's charter as its principal place of business or to another place of business of the corporation as shown by the records in the secretary of state's office.
(d)  The failure of the secretary of state to mail a copy of legal process to a corporation does not affect the validity of the service of process.  It is competent and sufficient proof of the service of process that the secretary of state certifies under the state seal the receipt of the process.
(e)  The secretary of state shall keep a record of each legal process served on the secretary under this section showing the date and time of the receipt of the process and the secretary's action on the process.
(f)  This section is cumulative of other laws relating to service of process.
Acts 1981, 67th Leg., p. 1708, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1993, 73rd Leg., ch. 300, Sec. 38, eff. Aug. 30, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 41 (H.B. 297), Sec. 4, eff. September 1, 2005.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter H. Enforcement › Section 171.361. Penalty for Disclosure of Information on Report

Sec. 171.361.  PENALTY FOR DISCLOSURE OF INFORMATION ON REPORT.  (a)  A person commits an offense if the person violates Section 171.208 of this code prohibiting the disclosure of information on a report filed under this chapter.
(b)  An offense under this section is punishable by a fine of not more than $1,000, confinement in jail for not more than one year, or both.
Acts 1981, 67th Leg., p. 1710, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter H. Enforcement › Section 171.362. Penalty for Failure to Pay Tax or File Report

Sec. 171.362.  PENALTY FOR FAILURE TO PAY TAX OR FILE REPORT.  (a)  If a taxable entity on which a tax is imposed by this chapter fails to pay the tax when it is due and payable or fails to file a report required by this chapter when it is due, the taxable entity is liable for a penalty of five percent of the amount of the tax due.
(b)  If the tax is not paid or the report is not filed within 30 days after the due date, a penalty of an additional five percent of the tax due is imposed.
(c)  The minimum penalty under Subsections (a) and (b) is $1.
(d)  If a taxable entity electing to remit under Section 171.202(c)(2)(A) remits less than the amount required, the penalties imposed by this section and the interest imposed under Section 111.060 are assessed against the difference between the amount required to be remitted under Section 171.202(c)(2)(A) and the amount actually remitted on or before May 15.
(e)  If a taxable entity remits the entire amount required by Section 171.202(c), no penalties will be imposed against the amount remitted on or before November 15.
(f)  In addition to any other penalty authorized by this section, a taxable entity who fails to file a report as required by this chapter shall pay a penalty of $50.  The penalty provided by this subsection is assessed without regard to whether the taxable entity subsequently files the report or whether any taxes were due from the taxable entity for the reporting period under the required report.
Acts 1981, 67th Leg., p. 1710, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 10, art. 3, Sec. 7, eff. Sept. 1, 1984;  Acts 1985, 69th Leg., ch. 37, Sec. 8, eff. Aug. 26, 1985;  Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.22, eff. Jan. 1, 1992.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 13, eff. January 1, 2008.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 14.08, eff. October 1, 2011.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter H. Enforcement › Section 171.363. Wilful and Fraudulent Acts

Sec. 171.363.  WILFUL AND FRAUDULENT ACTS.  (a)  A taxable entity commits an offense if the taxable entity is subject to the provisions of this chapter and the taxable entity wilfully:
(1)  fails to file a report;
(2)  fails to keep books and records as required by this chapter;
(3)  files a fraudulent report;
(4)  violates any rule of the comptroller for the administration and enforcement of the provisions of this chapter; or
(5)  attempts in any other manner to evade or defeat any tax imposed by this chapter or the payment of the tax.
(b)  A person commits an offense if the person is an accountant or an agent for or an officer or employee of a taxable entity and the person knowingly enters or provides false information on any report, return, or other document filed by the taxable entity under this chapter.
(c)  A person who commits an offense under this section may also, in addition to the punishment provided by this section, be liable for a penalty under this chapter.
(d)  An offense under this section is a felony of the third degree.
(e)  A person whose commercial domicile or whose residence is in this state may be prosecuted under this section only in the county in which the person's commercial domicile or residence is located unless the person asserts a right to be prosecuted in another county.
(f)  A prosecution for a violation of this section must be commenced before the fifth anniversary of the date of the violation.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.23, eff. Jan. 1, 1992.  Amended by Acts 1995, 74th Leg., ch. 1002, Sec. 20, eff. Jan. 1, 1996.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 14, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter I. Disposition of Revenue › Section 171.401. Revenue Deposited in General Revenue Fund

Sec. 171.401.  REVENUE DEPOSITED IN GENERAL REVENUE FUND.  The revenue from the tax imposed by this chapter shall be deposited to the credit of the general revenue fund.
Acts 1981, 67th Leg., p. 1710, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 3, part B, Sec. 7, eff. May 1, 1985;  Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 2, pt. 1, Sec. 2, eff. Jan. 1, 1988;  Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.231, eff. Jan. 1, 1992.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 15, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter I. Disposition of Revenue › Section 171.4011. Allocation of Certain Revenue to Property Tax Relief Fund

Sec. 171.4011.  ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX RELIEF FUND.  (a)  Notwithstanding Section 171.401, beginning with the state fiscal year that begins September 1, 2007, the comptroller shall, for each state fiscal year, deposit to the credit of the property tax relief fund under Section 403.109, Government Code, an amount of revenue calculated by:
(1)  determining the revenue derived from the tax imposed by this chapter as it applied during that applicable state fiscal year; and
(2)  subtracting the revenue the comptroller estimates that the tax imposed by this chapter, as it existed on August 31, 2007, would have generated if it had been in effect for that applicable state fiscal year.
(b)  If the amount under Subsection (a) is less than zero, the comptroller shall consider the amount to be zero.
Added by Acts 2006, 79th Leg., 3rd C.S., Ch. 3 (H.B. 2), Sec. 2(a), eff. September 1, 2007.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter J. Refunds › Section 171.501. Refund for Job Creation in Enterprise Zone

Sec. 171.501.  REFUND FOR JOB CREATION IN ENTERPRISE ZONE.  (a)  A corporation that has been certified a qualified business as provided by Chapter 2303, Government Code, may apply for and be granted a refund of franchise tax paid with an initial or annual report if the governing body certifies to the comptroller that the business has created 10 or more new jobs held by qualified employees during the calendar year that contains the end of the accounting period on which the report is based.
(b)  Only qualified businesses that have been certified as eligible for a refund under this section by the governing body to the comptroller are entitled to the refund.
(c)  Repealed by Acts 2003, 78th Leg., ch. 814, Sec. 6.01(10).
(d)  The amount of a refund under this section is the lesser of $5,000 or 25 percent of the amount of franchise tax due for any one privilege period before any other applicable credits.  For purposes of this subsection, the initial and second periods are considered to be the same privilege period.
(e)  In this section:
(1)  "Enterprise zone" and "qualified employee" have the meanings assigned to those terms by Section 2303.003, Government Code.
(2)  "Governing body" means the governing body of a municipality or county that applied to have the project or activity of a qualified business designated as an enterprise project under Section 2303.405, Government Code.
(3)  "New job" has the meaning assigned "permanent new job" by Section 2303.401, Government Code.
(4)  "Qualified business" means a person that is certified as a qualified business under Section 2303.402, Government Code.
Added by Acts 1989, 71st Leg., ch. 1106, Sec. 25, eff. Sept. 1, 1991.  Amended by Acts 1993, 73rd Leg., ch. 268, Sec. 44, eff. Sept. 1, 1993;  Acts 1995, 74th Leg., ch. 76, Sec. 5.59, 5.95(22), eff. Sept. 1, 1995;  Acts 1999, 76th Leg., ch. 1467, Sec. 2.61, eff. Jan. 1, 2000;  Acts 2001, 77th Leg., ch. 1263, Sec. 63, eff. Jan. 1, 2002;  Acts 2003, 78th Leg., ch. 814, Sec. 3.58, 3.59, 6.01(10), eff. Sept. 1, 2003.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter K. Tax Credit for Certain Housing Developments › Section 171.551. Definitions

Sec. 171.551.  DEFINITIONS.  In this subchapter:
(1)  "Allocation certificate" means a statement issued by the department certifying that a qualified development qualifies for credits under this subchapter and Chapter 233, Insurance Code, specifying the total amount of the credits awarded in connection with the qualified development for the credit period, and specifying the amount of credit that may be claimed each year for each building that is part of the qualified development.
(2)  "Credit" means the low-income housing development tax credit authorized by this subchapter.
(3)  "Credit period" means, with respect to a building that is part of a qualified development, the period of 10 tax years beginning with the tax year in which the building is placed in service.
(4)  "Department" means the Texas Department of Housing and Community Affairs.
(5)  "Development" has the meaning assigned by Section 2306.6702, Government Code.
(6)  "Federal tax credit" means the federal low-income housing credit created by Section 42, Internal Revenue Code.
(7)  "Qualified basis" means the qualified basis of a qualified development, as determined under Section 42, Internal Revenue Code.
(8)  "Qualified development" means a development in this state:
(A)  for which the department awards or allocates a federal tax credit through the issuance of a carryover allocation agreement or determination notice;
(B)  that has not had an allocation of federal tax credits terminated by or at the direction of the department;
(C)  that is the subject of a recorded restrictive covenant requiring the development to be maintained and operated as a qualified development that has not been terminated and is not subject to termination through any process other than the natural expiration of the covenant's extended use period;
(D)  that meets all applicable requirements of the qualified allocation plan, as defined by Section 2306.6702, Government Code; and
(E)  for the duration of the extended use period established in the land use restriction agreement, as defined by Section 2306.6702(a)(9), Government Code, is in compliance with:
(i)  all accessibility and adaptability requirements for a federal tax credit; and
(ii)  Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Section 3601 et seq.).
(9)  "State housing credit ceiling" means $25 million of credits each award year.
Added by Acts 2023, 88th Leg., R.S., Ch. 811 (H.B. 1058), Sec. 1, eff. January 1, 2024.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter K. Tax Credit for Certain Housing Developments › Section 171.552. Entitlement to Credit

Sec. 171.552.  ENTITLEMENT TO CREDIT.  A taxable entity is entitled to a credit against the taxes imposed under this chapter in the amount and under the limitations provided by this subchapter if the taxable entity owns a direct or indirect interest in a qualified development.
Added by Acts 2023, 88th Leg., R.S., Ch. 811 (H.B. 1058), Sec. 1, eff. January 1, 2024.