Texas Tax Code

§ 171.084 — EXEMPTION--CERTAIN TRADE SHOW PARTICIPANTS

TX § 171.084Title 2. STATE TAXATION · Part F. FRANCHISE TAX; CREDITS · Ch. 171. FRANCHISE TAX · Art. B. EXEMPTIONS

Statute text

(a)A corporation is exempted from the franchise tax if:

(1)the only business activity conducted by or on behalf of the corporation in this state is related to the solicitation of orders conducted by representatives of the corporation who:

(A)solicit orders of personal property to be sent outside this state for approval or rejection by the corporation and, if approved, to be filled by shipment or delivery from a point outside this state; or

(B)solicit orders in the name of or for the benefit of a customer or prospective customer of the corporation, if the orders are filled or intended to be filled by the customer or prospective customer of the corporation by making orders to the corporation described by Paragraph (A) of this subdivision; and

(2)the solicitation of orders is conducted on an occasional basis at trade shows:

(A)promoted by wholesale centers;

…

Legislative history

Added by Acts 1987, 70th Leg., ch. 778, Sec. 1, eff. May 1, 1988. Amended by Acts 2003, 78th Leg., ch. 209, Sec. 34, eff. Oct. 1, 2003.