reglab/statecodes huggingface dataset:
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter E. Penalties and Offenses › Section 162.404. Criminal Offenses: Special Provisions and Exceptions

Sec. 162.404.  CRIMINAL OFFENSES:  SPECIAL PROVISIONS AND EXCEPTIONS.  (a)  A person does not commit an offense under Section 162.403 unless the person intentionally or knowingly engaged in conduct as the definition of the offense requires, except that no culpable mental state is required for an offense under Section 162.403(5).
(b)  Each day that a refusal prohibited under Section 162.403(8), (9), or (10) continues is a separate offense.
(c)  The prohibition under Section 162.403(27) does not apply to the tax-free sale or distribution of diesel fuel authorized by Section 162.204(a)(1), (2), or (3).
(d)  The prohibition under Section 162.403(28) does not apply to the tax-free sale or distribution of gasoline under Section 162.104(a)(1), (2), or (3).
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1255 (H.B. 1905), Sec. 32, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter E. Penalties and Offenses › Section 162.405. Criminal Penalties

Sec. 162.405.  CRIMINAL PENALTIES.  (a)  An offense under Section 162.403(1), (2), (3), (4), (5), or (7) is a Class C misdemeanor.
(b)  An offense under Section 162.403(8), (9), (10), (11), (12), (13), (35), or (36) is a Class B misdemeanor.
(c)  An offense under Section 162.403(14), (15), or (16) is a Class A misdemeanor.
(d)  An offense under Section 162.403(6), (17), (18), (19), (20), (21), (22), (23), or (24) is a felony of the third degree.
(e)  An offense under Section 162.403(25), (26), (27), (28), (29), (30), (31), (32), (33), or (34) is a felony of the second degree.
(f)  Violations of three or more separate offenses under the following sections committed pursuant to one scheme or continuous course of conduct may be considered as one offense and punished as a felony of the second degree:
(1)  Section 162.403(6);
(2)  Sections 162.403(8) through (11); or
(3)  Sections 162.403(17) through (24).
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.  Amended by Acts 2003, 78th Leg., ch. 209, Sec. 96, eff. Jan. 1, 2004.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1227 (S.B. 1495), Sec. 34, eff. September 1, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 990 (H.B. 2148), Sec. 8, eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 1255 (H.B. 1905), Sec. 33, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter E. Penalties and Offenses › Section 162.406. Criminal Penalties: Corporations and Associations

Sec. 162.406.  CRIMINAL PENALTIES:  CORPORATIONS AND ASSOCIATIONS.  (a)  Except as provided by Subsection (b), Subchapter E, Chapter 12, Penal Code, applies to offenses under this chapter committed by a corporation or association.
(b)  The court may not fine a corporation or association under Section 12.51(c), Penal Code, unless the amount of the fine under that subsection is greater than the amount that could be fixed by the court under Section 12.51(b), Penal Code.
(c)  In addition to a sentence imposed on a corporation, the court shall give notice of the conviction to the attorney general as required by Article 17A.09, Code of Criminal Procedure.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter E. Penalties and Offenses › Section 162.407. Venue of Criminal Prosecutions

Sec. 162.407.  VENUE OF CRIMINAL PROSECUTIONS.  The venue for a prosecution under this subchapter is in Travis County or in the county where the offense occurred.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter E. Penalties and Offenses › Section 162.408. Negation of Exception: Information, Complaint, or Indictment

Sec. 162.408.  NEGATION OF EXCEPTION:  INFORMATION, COMPLAINT, OR INDICTMENT.  An information, complaint, or indictment charging a violation of this chapter need not negate an exception to an act prohibited by this chapter, but the exception may be urged by the defendant as a defense to the offense charged.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter E. Penalties and Offenses › Section 162.409. Issuance of Bad Check or Similar Sight Order to Licensed Distributor, Licensed Supplier, or Permissive Supplier

Sec. 162.409.  ISSUANCE OF BAD CHECK OR SIMILAR SIGHT ORDER TO LICENSED DISTRIBUTOR, LICENSED SUPPLIER, OR PERMISSIVE SUPPLIER.  (a)  A person commits an offense if:
(1)  the person issues or passes a check or similar sight order, as defined by Section 1.07, Penal Code, for the payment of money knowing that the issuer does not have sufficient funds in or on deposit with the bank or other drawee for the payment in full of the check or order as well as all other checks or orders outstanding at the time of issuance;
(2)  the payee on the check or order is a licensed distributor, licensed supplier, or permissive supplier; and
(3)  the payment is for an obligation or debt that includes a tax under this chapter to be collected by the licensed distributor, licensed supplier, or permissive supplier.
(b)  Sections 32.41(b), (c), (d), (e), and (g), Penal Code, apply to an offense under this section in the same manner as those provisions are applicable to the offense under Section 32.41(a), Penal Code.
(c)  An offense under this section is a Class C misdemeanor.
(d)  A person who makes payment on an obligation or debt that includes a tax under this chapter and pays with an insufficient funds check or similar sight order, as defined by Section 1.07, Penal Code, issued to a licensed distributor, licensed supplier, or permissive supplier may be held liable for a penalty equal to the total amount of tax not paid to the licensed distributor, licensed supplier, or permissive supplier.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1227 (S.B. 1495), Sec. 35, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1227 (S.B. 1495), Sec. 36, eff. September 1, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 128 (S.B. 821), Sec. 11, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 128 (S.B. 821), Sec. 12, eff. September 1, 2013.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter E. Penalties and Offenses › Section 162.410. Election of Offenses

Sec. 162.410.  ELECTION OF OFFENSES.  If a violation of a criminal offense provision of this chapter by a person constitutes another offense under the laws of this state, the state may elect the offense for which it will prosecute the person.
Added by Acts 2009, 81st Leg., R.S., Ch. 1227 (S.B. 1495), Sec. 37, eff. September 1, 2009.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter F. Allocation of Taxes › Section 162.501. Tax Administration Fund

Sec. 162.501.  TAX ADMINISTRATION FUND.  (a)  Before any other allocation of the taxes collected under this chapter is made, one percent of the gross amount of the taxes shall be deposited in the state treasury in a special fund, subject to the use of the comptroller in the administration and enforcement of this chapter.
(b)  The unexpended portion of the special fund shall revert, at the end of the fiscal year, to the other funds to which revenue is allocated by this subchapter in proportion to the amounts originally derived from the respective sources.
(c)  Repealed by Acts 2015, 84th Leg., R.S., Ch. 1203 , Sec. 21(7), eff. September 1, 2015.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1203 (S.B. 1455), Sec. 21(7), eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter F. Allocation of Taxes › Section 162.502. Allocation of Unclaimed Refundable Gasoline Taxes

Sec. 162.502.  ALLOCATION OF UNCLAIMED REFUNDABLE GASOLINE TAXES.  (a)  On or before the fifth workday after the end of each month, the comptroller, after making the deductions for refund purposes, shall determine as accurately as possible, for the period since the latest determination under this subsection, the number of gallons of fuel used in motorboats on which the gasoline tax has been paid to this state, on which refund of the tax has not been made, and against which limitation has run for filing claim for refund of the tax.  From the number of gallons so determined the comptroller shall compute the amount of taxes that would have been refunded under the law had refund claims been filed in accordance with the law.
(b)  The comptroller shall allocate and deposit these unclaimed refunds as follows:
(1)  25 percent of the revenues based on unclaimed refunds of taxes paid on motor fuel used in motorboats shall be deposited to the credit of the available school fund;  and
(2)  the remaining 75 percent of the revenue shall be deposited to the credit of the general revenue fund.
(c)  Money deposited to the credit of the general revenue fund under Subsection (b)(2) may be appropriated only to the Parks and Wildlife Department for any lawful purpose.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter F. Allocation of Taxes › Section 162.5025. Allocation of Other Unclaimed Refundable Nondedicated Taxes

Sec. 162.5025.  ALLOCATION OF OTHER UNCLAIMED REFUNDABLE NONDEDICATED TAXES.  (a)  The comptroller by rule shall devise a method of determining as accurately as possible the:
(1)  number of gallons of fuel that are not used to propel a motor vehicle on the public highways;  and
(2)  amount of taxes collected under this chapter from fuel that is not used to propel a motor vehicle on the public highways that would have been refunded under this chapter if refund claims had been filed in accordance with this chapter and that is not subject to allocation under Section 162.502.
(b)  The comptroller shall allocate to the general revenue fund the amount determined under Subsection (a)(2).
(c)  The determination and allocation shall be made periodically as prescribed by rule.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter F. Allocation of Taxes › Section 162.503. Allocation of Gasoline Tax

Sec. 162.503.  ALLOCATION OF GASOLINE TAX.  (a)  On or before the fifth workday after the end of each month, the comptroller, after making all deductions for refund purposes and for the amounts allocated under Sections 162.502 and 162.5025, shall allocate the net remainder of the taxes collected under Subchapter B as follows:
(1)  one-fourth of the tax shall be deposited to the credit of the available school fund;
(2)  one-half of the tax shall be deposited to the credit of the state highway fund for the construction and maintenance of the state road system under existing law; and
(3)  from the remaining one-fourth of the tax the comptroller shall:
(A)  deposit to the credit of the county and road district highway fund all the remaining tax receipts until a total of $7,300,000 has been credited to the fund each fiscal year; and
(B)  after the amount required to be deposited to the county and road district highway fund has been deposited, deposit to the credit of the state highway fund the remainder of the one-fourth of the tax, the amount to be provided on the basis of allocations made each month of the fiscal year, which sum shall be used by the Texas Department of Transportation for the construction, improvement, and maintenance of farm-to-market roads.
(b)  Repealed by Acts 2013, 83rd Leg., R.S., Ch. 431, Sec. 3(5), eff. June 14, 2013.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 9.03, eff. October 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 431 (S.B. 559), Sec. 3(5), eff. June 14, 2013.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter F. Allocation of Taxes › Section 162.504. Allocation of Diesel Fuel Tax

Sec. 162.504.  ALLOCATION OF DIESEL FUEL TAX.  (a)  On or before the fifth workday after the end of each month, the comptroller, after making deductions for refund purposes, for the administration and enforcement of this chapter, and for the amounts allocated under Section 162.5025, shall allocate the remainder of the taxes collected under Subchapter C as follows:
(1)  one-fourth of the taxes shall be deposited to the credit of the available school fund; and
(2)  three-fourths of the taxes shall be deposited to the credit of the state highway fund.
(b)  Repealed by Acts 2013, 83rd Leg., R.S., Ch. 431, Sec. 3(6), eff. June 14, 2013.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 9.04, eff. October 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 431 (S.B. 559), Sec. 3(6), eff. June 14, 2013.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter F. Allocation of Taxes › Section 162.5045. Allocation of Taxes Paid on Undyed Diesel Fuel Used Off-Highway

Sec. 162.5045.  ALLOCATION OF TAXES PAID ON UNDYED DIESEL FUEL USED OFF-HIGHWAY.  On or before the fifth workday after the end of each month, the comptroller shall determine as accurately as possible for the period since the latest determination under this section the number of gallons of undyed diesel fuel used for purposes other than to propel a motor vehicle on the public highways of this state.  From the number of gallons so determined, the comptroller shall compute the amount of taxes that were paid on that undyed diesel fuel and shall allocate and deposit that amount to the credit of the general revenue fund.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter F. Allocation of Taxes › Section 162.506. Allocation of Compressed Natural Gas and Liquefied Natural Gas Tax

Sec. 162.506.  ALLOCATION OF COMPRESSED NATURAL GAS AND LIQUEFIED NATURAL GAS TAX.  On or before the fifth workday after the end of each month, the comptroller, after making deductions for refund purposes and for the administration and enforcement of this chapter, shall allocate the remainder of the taxes collected under Subchapter D-1 as follows:
(1)  one-fourth of the taxes shall be deposited to the credit of the available school fund;  and
(2)  three-fourths of the taxes shall be deposited to the credit of the state highway fund.
Added by Acts 2013, 83rd Leg., R.S., Ch. 990 (H.B. 2148), Sec. 5, eff. September 1, 2013.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 163 - Sales and Use Taxation of Aircraft › Section 163.001. Certificated or Licensed Carriers

Sec. 163.001.  CERTIFICATED OR LICENSED CARRIERS.  (a)  For purposes of Chapter 151, "certificated or licensed carrier" means a person authorized by the Federal Aviation Administration to operate an aircraft to transport persons or property in compliance with the certification and operations specifications requirements of 14 C.F.R. Part 121, 125, 133, or 135.
(b)  Section 151.328(a)(1) applies with respect to a certificated carrier's acquisition of an aircraft, without regard to whether the certificated carrier acquired the aircraft by purchase, lease, or rental.
Added by Acts 2015, 84th Leg., R.S., Ch. 631 (S.B. 1396), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 163 - Sales and Use Taxation of Aircraft › Section 163.002. Resale of Aircraft

Sec. 163.002.  RESALE OF AIRCRAFT.  (a)  For purposes of Section 151.006, "sale for resale" includes the sale of an aircraft to a purchaser who acquires the aircraft for the purpose of leasing, renting, or reselling the aircraft to another person in the United States of America or a possession or territory of the United States of America or in the United Mexican States in the form or condition in which it is acquired.
(b)  The leasing or renting of an aircraft under Subsection (a) includes the transfer of operational control of the aircraft from a lessor to one or more lessees pursuant to one or more written agreements in exchange for consideration, regardless of whether the consideration is in the form of a cash payment and regardless of whether the consideration is fixed, variable, or periodic.  For purposes of this subsection, "operational control" has the meaning assigned by the Federal Aviation Regulations and includes the exercise of authority over initiating, conducting, or terminating a flight.
(c)  Subsection (a) applies to a purchase of an aircraft regardless of whether the purchaser, in addition to leasing, renting, or reselling the aircraft to another person, also uses the aircraft if, for a period of one year beginning on the date the purchaser purchases the aircraft, more than 50 percent of the aircraft's departures are made under the operational control of one or more lessees pursuant to one or more written agreements as described by Subsection (b).
(d)  Section 151.154(a) does not apply to a purchaser of an aircraft.
Added by Acts 2015, 84th Leg., R.S., Ch. 631 (S.B. 1396), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 163 - Sales and Use Taxation of Aircraft › Section 163.003. Use of Aircraft

Sec. 163.003.  USE OF AIRCRAFT.  For purposes of the tax imposed under Subchapter D, Chapter 151, an aircraft that is brought into this state for the sole purpose of being completed, repaired, remodeled, or restored is not brought into the state for storage, use, or other consumption in this state.
Added by Acts 2015, 84th Leg., R.S., Ch. 631 (S.B. 1396), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 163 - Sales and Use Taxation of Aircraft › Section 163.004. No Presumption of Use

Sec. 163.004.  NO PRESUMPTION OF USE.  For purposes of the tax imposed under Subchapter D, Chapter 151, there is no presumption that an aircraft was purchased for storage, use, or consumption in this state if the person bringing the aircraft into this state did not acquire the aircraft directly from a seller by means of a purchase, as that term is defined by Section 151.005.
Added by Acts 2015, 84th Leg., R.S., Ch. 631 (S.B. 1396), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 163 - Sales and Use Taxation of Aircraft › Section 163.005. No Imposition of Tax Following Out-of-State Use

Sec. 163.005.  NO IMPOSITION OF TAX FOLLOWING OUT-OF-STATE USE.  (a)  No tax is imposed under Subchapter D, Chapter 151, with respect to an aircraft that is brought into this state if the aircraft is predominantly used outside of this state for a period of one year beginning on the later of:
(1)  the date the aircraft was acquired, whether by purchase, lease, rental, or otherwise, by the person bringing the aircraft into this state; or
(2)  the date the aircraft:
(A)  was substantially complete in the condition for its intended use; and
(B)  conducted its first flight for the carriage of persons or property.
(b)  For purposes of this section, an aircraft is predominantly used outside of this state if more than 50 percent of the aircraft's departures are from locations outside of this state.
Added by Acts 2015, 84th Leg., R.S., Ch. 631 (S.B. 1396), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 163 - Sales and Use Taxation of Aircraft › Section 163.006. Certain Transactions Between Related Persons

Sec. 163.006.  CERTAIN TRANSACTIONS BETWEEN RELATED PERSONS.  (a)  For purposes of the tax imposed under Chapter 151, a sale, lease, rental, or other transaction between a person and a member, owner, or affiliate of the person involving an aircraft that would not be subject to tax or would qualify for an exemption from tax if the transaction were between unrelated persons remains not subject to tax or exempt from tax to the same extent as if the transaction were between unrelated persons.
(b)  No tax is imposed under Chapter 151 with respect to the use of an aircraft by an owner or member of the purchaser of the aircraft, by an entity that is an affiliate of the purchaser of the aircraft, or by an owner or member of an affiliate of the purchaser of the aircraft if:
(1)  with respect to the purchase of the aircraft, the purchaser paid the tax imposed under Chapter 151; or
(2)  the purchaser's purchase of the aircraft was exempt from the tax imposed under Chapter 151, other than under:
(A)  Section 151.302; or
(B)  Section 151.304, unless the purchase would have been exempt from tax under Section 151.304 if the owner, member, affiliate, or owner or member of the affiliate who is using the aircraft had been the purchaser.
(c)  For purposes of this section, the term "affiliate" means an entity that would be classified as a member of the purchaser's affiliated group under Section 171.0001.
Added by Acts 2015, 84th Leg., R.S., Ch. 631 (S.B. 1396), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 163 - Sales and Use Taxation of Aircraft › Section 163.007. Aircraft Operated Under Fractional Ownership Programs

Sec. 163.007.  AIRCRAFT OPERATED UNDER FRACTIONAL OWNERSHIP PROGRAMS.  No tax is imposed under Chapter 151 with respect to the purchase, sale, or use of an aircraft that is operated pursuant to 14 C.F.R. Part 91, Subpart K.
Added by Acts 2015, 84th Leg., R.S., Ch. 631 (S.B. 1396), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 163 - Sales and Use Taxation of Aircraft › Section 163.008. No Imposition of Tax Under This Chapter

Sec. 163.008.  NO IMPOSITION OF TAX UNDER THIS CHAPTER.  Nothing in this chapter shall be construed to impose a tax.
Added by Acts 2015, 84th Leg., R.S., Ch. 631 (S.B. 1396), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 163 - Sales and Use Taxation of Aircraft › Section 163.009. Conflicts With Other Law

Sec. 163.009.  CONFLICTS WITH OTHER LAW.  This chapter controls over Chapter 151 to the extent of any conflict.
Added by Acts 2015, 84th Leg., R.S., Ch. 631 (S.B. 1396), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter A. Definitions; Tax Imposed › Section 171.0003. Definition of Passive Entity

Sec. 171.0003.  DEFINITION OF PASSIVE ENTITY.  (a)  An entity is a passive entity only if:
(1)  the entity is a general or limited partnership or a trust, other than a business trust;
(2)  during the period on which margin is based, the entity's federal gross income consists of at least 90 percent of the following income:
(A)  dividends, interest, foreign currency exchange gain, periodic and nonperiodic payments with respect to notional principal contracts, option premiums, cash settlement or termination payments with respect to a financial instrument, and income from a limited liability company;
(B)  distributive shares of partnership income to the extent that those distributive shares of income are greater than zero;
(C)  capital gains from the sale of real property, gains from the sale of commodities traded on a commodities exchange, and gains from the sale of securities; and
(D)  royalties, bonuses, or delay rental income from mineral properties and income from other nonoperating mineral interests; and
(3)  the entity does not receive more than 10 percent of its federal gross income from conducting an active trade or business.
(a-1)  In making the computation under Subsection (a)(3), income described by Subsection (a)(2) may not be treated as income from conducting an active trade or business.
(b)  The income described by Subsection (a)(2) does not include:
(1)  rent; or
(2)  income received by a nonoperator from mineral properties under a joint operating agreement if the nonoperator is a member of an affiliated group and another member of that group is the operator under the same joint operating agreement.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 2, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 3, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter A. Definitions; Tax Imposed › Section 171.0004. Definition of Conducting Active Trade or Business

Sec. 171.0004.  DEFINITION OF CONDUCTING ACTIVE TRADE OR BUSINESS.  (a)  The definition in this section applies only to Section 171.0003.
(b)  An entity conducts an active trade or business if:
(1)  the activities being carried on by the entity include one or more active operations that form a part of the process of earning income or profit; and
(2)  the entity performs active management and operational functions.
(c)  Activities performed by the entity include activities performed by persons outside the entity, including independent contractors, to the extent the persons perform services on behalf of the entity and those services constitute all or part of the entity's trade or business.
(d)  An entity conducts an active trade or business if assets, including royalties, patents, trademarks, and other intangible assets, held by the entity are used in the active trade or business of one or more related entities.
(e)  For purposes of this section:
(1)  the ownership of a royalty interest or a nonoperating working interest in mineral rights does not constitute conduct of an active trade or business;
(2)  payment of compensation to employees or independent contractors for financial or legal services reasonably necessary for the operation of the entity does not constitute conduct of an active trade or business; and
(3)  holding a seat on the board of directors of an entity does not by itself constitute conduct of an active trade or business.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 2, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 4, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter A. Definitions; Tax Imposed › Section 171.0005. Definition of New Veteran-Owned Business

Text of section effective until January 01, 2026
Sec. 171.0005.  DEFINITION OF NEW VETERAN-OWNED BUSINESS.  (a)  A taxable entity is a new veteran-owned business only if the taxable entity is a new business in which each owner is a natural person who:
(1)  served in and was honorably discharged from a branch of the United States armed forces; and
(2)  provides verification to the comptroller of the person's service and discharge required by Subdivision (1).
(b)  The Texas Veterans Commission shall provide to a person who meets the requirements of Subsection (a)(1) written verification of that status in a form required by the comptroller.  The comptroller shall adopt rules prescribing the form and content of the verification and the manner in which the verification may be provided to the comptroller.
(c)  For purposes of Subsection (a), a new business is a taxable entity that:
(1)  is chartered or organized or otherwise formed in this state; and
(2)  first begins doing business in this state on or after January 1, 2022.
Added by Acts 2021, 87th Leg., R.S., Ch. 859 (S.B. 938), Sec. 4, eff. January 1, 2022.
Repealed by Acts 2021, 87th Leg., R.S., Ch. 859 (S.B. 938), Sec. 9(2), eff. January 1, 2026.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter A. Definitions; Tax Imposed › Section 171.001. Tax Imposed

Sec. 171.001.  TAX IMPOSED.  (a)  A franchise tax is imposed on  each taxable entity that does business in this state or that is chartered or organized in this state.
(b)   The tax imposed under this chapter extends to the limits of the United States Constitution and the federal law adopted under the United States Constitution.
(c)  The tax imposed under this section or Section 171.0011 is not imposed on an entity if, during the period on which the report is based, the entity qualifies as a passive entity as defined by Section 171.0003.
Text of subsection effective until January 01, 2026
(d)  Notwithstanding Subsection (a), the tax imposed under this chapter is not imposed on a taxable entity that qualifies as a new veteran-owned business as defined by Section 171.0005 until the earlier of:
(1)  the fifth anniversary of the date on which the taxable entity begins doing business in this state; or
(2)  the date the taxable entity ceases to qualify as a new veteran-owned business as defined by Section 171.0005.
Text of subsection effective on January 01, 2026
(d)  Repealed by Acts 2021, 87th Leg., R.S., Ch. 859 (S.B. 938), Sec. 9(3), eff. January 1, 2026.
Acts 1981, 67th Leg., p. 1691, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1991, 72nd Leg., ch. 901, Sec. 53(a), eff. Aug. 26, 1991;  Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.01, eff. Jan. 1, 1992;  Acts 1993, 73rd Leg., ch. 765, Sec. 7, eff. Aug. 30, 1993;  Acts 1995, 74th Leg., ch. 914, Sec. 12, eff. Sept. 1, 1995;  Acts 1995, 74th Leg., ch. 1002, Sec. 1, eff. Jan. 1, 1996;  Acts 1997, 75th Leg., ch. 1185, Sec. 1, eff. Jan. 1, 1998;  Acts 1999, 76th Leg., ch. 184, Sec. 1, eff. Jan. 1, 2000;  Acts 2003, 78th Leg., ch. 209, Sec. 31, 32, eff. Oct. 1, 2003.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 2, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 5, eff. January 1, 2008.
Acts 2015, 84th Leg., R.S., Ch. 329 (S.B. 1049), Sec. 4, eff. January 1, 2016.
Acts 2015, 84th Leg., R.S., Ch. 329 (S.B. 1049), Sec. 9(2), eff. January 1, 2020.
Acts 2021, 87th Leg., R.S., Ch. 859 (S.B. 938), Sec. 5, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 859 (S.B. 938), Sec. 9(3), eff. January 1, 2026.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter A. Definitions; Tax Imposed › Section 171.0011. Additional Tax

Sec. 171.0011.  ADDITIONAL TAX.  (a)  Except as provided by Section 171.001(c), an additional tax is imposed on a taxable entity that for any reason becomes no longer subject to the tax imposed under this chapter.
(b)  The additional tax is equal to the appropriate rate under Section 171.002 of the taxable entity's taxable margin computed on the period beginning on the day after the last day for which the tax imposed on taxable margin or net taxable earned surplus was computed and ending on the date the taxable entity is no longer subject to the tax imposed under this chapter.
(c)  The additional tax imposed and any report required by the comptroller are due on the 60th day after the date the taxable entity becomes no longer subject to the tax imposed under this chapter.
(d)  Except as otherwise provided by this section, the provisions of this chapter apply to the tax imposed under this section.
(e)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 1282, Sec. 37(1), eff. January 1, 2008.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.02, eff. Jan. 1, 1992.  Amended by Acts 1993, 73rd Leg., ch. 546, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 2, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 6, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 37(1), eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter A. Definitions; Tax Imposed › Section 171.003. Increase in Rate Requires Voter Approval

Sec. 171.003.  INCREASE IN RATE REQUIRES VOTER APPROVAL.  (a)  An increase in a rate provided by Section 171.002(a) or (b) takes effect only if approved by a majority of the registered voters voting in a statewide referendum held on the question of increasing the rate.  The referendum must specify the increased rate or rates.
(b)  This section does not apply to a decrease in a rate provided by Section 171.002(a) or (b).  If a rate is decreased, this section applies to any subsequent increase in that rate.
(c)  This section does not apply to any change in the tax imposed by this chapter in relation to:
(1)  the manner in which the tax is computed, including the determination of margin and taxable margin and any allowable deductions or credits;
(2)  the manner in which the tax is administered or enforced; or
(3)  the applicability of the tax to certain entities.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 2, eff. January 1, 2008.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter A. Definitions; Tax Imposed › Section 171.006. Adjustment of Eligibility for No Tax Due, Discounts, and Compensation Deduction

Sec. 171.006.  ADJUSTMENT OF ELIGIBILITY FOR NO TAX DUE, DISCOUNTS, AND COMPENSATION DEDUCTION.  (a)  In this section, "consumer price index" means the average over a state fiscal biennium of the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, published monthly by the United States Bureau of Labor Statistics, or its successor in function.
(b)  Beginning in 2010, on January 1 of each even-numbered year, the amounts prescribed by Sections 171.002(d)(2) and 171.1013(c) are increased or decreased by an amount equal to the amount prescribed by those sections on December 31 of the preceding year multiplied by the percentage increase or decrease during the preceding state fiscal biennium in the consumer price index and rounded to the nearest $10,000.
(c)  The amounts determined under Subsection (b) apply to a report originally due on or after the date the determination is made.
(d)  The comptroller shall make the determination required by this section and may adopt rules related to making that determination.
(e)  A determination by the comptroller under this section is final and may not be appealed.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 2, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 9, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 10, eff. January 1, 2008.
Acts 2013, 83rd Leg., R.S., Ch. 1232 (H.B. 500), Sec. 3, eff. January 1, 2014.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter B. Exemptions › Section 171.051. Application for Exemption; Effective Date

Sec. 171.051.  APPLICATION FOR EXEMPTION;  EFFECTIVE DATE.  (a)  Except as provided by Subsection (c) of this section, a corporation may apply for an exemption under this subchapter by filing with the comptroller, as provided by the rules of the comptroller, evidence of the corporation's qualifications for the exemption.
(b)  If a corporation files the evidence establishing the corporation's qualifications for an exemption within 15 months after the last day of the calendar month in which the corporation's charter or certificate of authority is dated, the exemption is recognized, if it is finally established, as of the date of the charter or certificate.
(c)  The exemption provided by Section 171.063 of this code must be established as provided by that section, but a corporation may apply for and receive other exemptions as provided by this section.
(d)  Neither this section nor Section 171.063 of this code requires a corporation that was granted a franchise tax exemption before September 1, 1975, that was entitled to the exemption on September 1, 1975, and that has held the exemption since that date, to file an additional application, report, letter of exemption, or other evidence of qualification for that exemption.
Acts 1981, 67th Leg., p. 1693, 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 B. Exemptions › Section 171.052. Certain Corporations

Sec. 171.052.  CERTAIN CORPORATIONS.  (a)  Except as provided by Subsection (c), an insurance organization, title insurance company, or title insurance agent authorized to engage in insurance business in this state that is required to pay an annual tax measured by its gross premium receipts is exempted from the franchise tax.  A nonadmitted insurance organization that is required to pay a gross premium receipts tax during a tax year is exempted from the franchise tax for that same tax year.  A nonadmitted insurance organization that is subject to an occupation tax or any other tax that is imposed for the privilege of doing business in another state or a foreign jurisdiction, including a tax on gross premium receipts, is exempted from the franchise tax.
(b)  Farm mutuals, local mutual aid associations, and burial associations are not subject to the franchise tax.
(c)  An entity is subject to the franchise tax for a tax year in any portion of which the entity is in violation of an order issued by the Texas Department of Insurance under Section 2254.003(b), Insurance Code, that is final after appeal or that is no longer subject to appeal.
Acts 1981, 67th Leg., p. 1693, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1985, 69th Leg., ch. 30, Sec. 1, eff. Aug. 26, 1985;  Acts 1993, 73rd Leg., ch. 546, Sec. 2, eff. Jan. 1, 1994;  Acts 2001, 77th Leg., ch. 1275, Sec. 1, eff. Sept. 1, 2001;  Acts 2003, 78th Leg., ch. 209, Sec. 33, eff. Oct. 1, 2003.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 3, eff. January 1, 2008.
Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 5, eff. June 14, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1232 (H.B. 500), Sec. 4, eff. January 1, 2014.
Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 16.003, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter B. Exemptions › Section 171.0525. Exemption--Certain Insurance Companies

Sec. 171.0525.  EXEMPTION--CERTAIN INSURANCE COMPANIES.  A corporation that is a farm mutual insurance company, local mutual aid association, or burial association is exempted from the franchise tax.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 23, eff. April 1, 2005.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter B. Exemptions › Section 171.053. Exemption--Railway Terminal Corporation

Sec. 171.053.  EXEMPTION--RAILWAY TERMINAL CORPORATION.  A corporation organized as a railway terminal corporation and having no annual net income from its business is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1693, 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 B. Exemptions › Section 171.055. Exemption--Open-End Investment Company

Sec. 171.055.  EXEMPTION--OPEN-END INVESTMENT COMPANY.  An open-end investment company, as defined by the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.), that is subject to that Act and that is registered under The Securities Act (Title 12, Government Code) is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1693, ch. 389, Sec. 1, eff. Jan. 1, 1982.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.41, eff. January 1, 2022.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter B. Exemptions › Section 171.056. Exemption--Corporation With Business Interest in Solar Energy Devices

Sec. 171.056.  EXEMPTION--CORPORATION WITH BUSINESS INTEREST IN SOLAR ENERGY DEVICES.  A corporation engaged solely in the business of manufacturing, selling, or installing solar energy devices, as defined by Section 171.107 of this code, is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1693, 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 B. Exemptions › Section 171.057. Exemption--Nonprofit Corporation Organized to Promote County, City, or Another Area

Sec. 171.057.  EXEMPTION--NONPROFIT CORPORATION ORGANIZED TO PROMOTE COUNTY, CITY, OR ANOTHER AREA.  A nonprofit corporation organized solely to promote the public interest of a county, city, town, or another area in the state is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1694, 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 B. Exemptions › Section 171.058. Exemption--Nonprofit Corporation Organized for Religious Purposes

Sec. 171.058.  EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR RELIGIOUS PURPOSES.  A nonprofit corporation organized for the purpose of religious worship is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1694, 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 B. Exemptions › Section 171.059. Exemption--Nonprofit Corporation Organized to Provide Burial Places

Sec. 171.059.  EXEMPTION--NONPROFIT CORPORATION ORGANIZED TO PROVIDE BURIAL PLACES.  A nonprofit corporation organized to provide places of burial is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1694, 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 B. Exemptions › Section 171.060. Exemption--Nonprofit Corporation Organized for Agricultural Purposes

Sec. 171.060.  EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR AGRICULTURAL PURPOSES.  A nonprofit corporation organized to hold agricultural fairs and encourage agricultural pursuits is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1694, 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 B. Exemptions › Section 171.061. Exemption--Nonprofit Corporation Organized for Educational Purposes

Sec. 171.061.  EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR EDUCATIONAL PURPOSES.  A nonprofit corporation organized solely for educational purposes is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1694, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 1002, Sec. 3, eff. Jan. 1, 1996.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter B. Exemptions › Section 171.062. Exemption--Nonprofit Corporation Organized for Public Charity

Sec. 171.062.  EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR PUBLIC CHARITY.  A nonprofit corporation organized for purely public charity is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1694, 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 B. Exemptions › Section 171.064. Exemption--Nonprofit Corporation Organized for Conservation Purposes

Sec. 171.064.  EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR CONSERVATION PURPOSES.  A nonprofit corporation organized solely to educate the public about the protection and conservation of fish, game, other wildlife, grasslands, or forests is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1695, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 1002, Sec. 5, eff. Jan. 1, 1996.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter B. Exemptions › Section 171.065. Exemption--Nonprofit Corporation Organized to Provide Water Supply or Sewer Services

Sec. 171.065.  EXEMPTION--NONPROFIT CORPORATION ORGANIZED TO PROVIDE WATER SUPPLY OR SEWER SERVICES.  A nonprofit water supply or sewer service corporation organized in behalf of a city or town under Chapter 67, Water Code, is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1695, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.47, eff. Sept. 1, 1999.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle F - Franchise Tax; Credits › Chapter 171 - Franchise Tax › Subchapter B. Exemptions › Section 171.066. Exemption--Nonprofit Corporation Involved With City Natural Gas Facility

Sec. 171.066.  EXEMPTION--NONPROFIT CORPORATION INVOLVED WITH CITY NATURAL GAS FACILITY.  A nonprofit corporation organized to construct, acquire, own, lease, or operate a natural gas facility in behalf and for the benefit of a city or residents of a city is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1695, 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 B. Exemptions › Section 171.067. Exemption--Nonprofit Corporation Organized to Provide Convalescent Homes for Elderly

Sec. 171.067.  EXEMPTION--NONPROFIT CORPORATION ORGANIZED TO PROVIDE CONVALESCENT HOMES FOR ELDERLY.  A nonprofit corporation organized to provide a convalescent home or other housing for persons who are at least 62 years old or who are handicapped or disabled is exempted from the franchise tax, whether or not the corporation is organized for purely public charity.
Acts 1981, 67th Leg., p. 1695, 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 B. Exemptions › Section 171.068. Exemption--Nonprofit Corporation Organized to Provide Cooperative Housing

Sec. 171.068.  EXEMPTION--NONPROFIT CORPORATION ORGANIZED TO PROVIDE COOPERATIVE HOUSING.  A nonprofit corporation engaged solely in the business of owning residential property for the purpose of providing cooperative housing for persons is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1695, 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 B. Exemptions › Section 171.069. Exemption--Marketing Associations

Sec. 171.069.  EXEMPTION--MARKETING ASSOCIATIONS.  A marketing association incorporated under Chapter 52, Agriculture Code, is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1695, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 1002, Sec. 6, eff. Jan. 1, 1996.