Texas Tax Code

§ 171.101 — DETERMINATION OF TAXABLE MARGIN

TX § 171.101Title 2. STATE TAXATION · Part F. FRANCHISE TAX; CREDITS · Ch. 171. FRANCHISE TAX · Art. C. DETERMINATION OF TAXABLE MARGIN; ALLOCATION AND APPORTIONMENT

Statute text

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(a)The taxable margin of a taxable entity is computed by:

(1)determining the taxable entity's margin, which is the lesser of:

(A)the amount provided by this paragraph, which is the lesser of:

(i)70 percent of the taxable entity's total revenue from its entire business, as determined under Section 171.1011; or

(ii)an amount equal to the taxable entity's total revenue from its entire business as determined under Section 171.1011 minus $1 million; or

(B)an amount computed by determining the taxable entity's total revenue from its entire business under Section 171.1011 and subtracting the greater of:

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Legislative history

Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 5, eff. January 1, 2008. Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 11, eff. January 1, 2008. Acts 2013, 83rd Leg., R.S., Ch. 117 (S.B. 1286), Sec. 24, eff. September 1, 2013. Acts 2013, 83rd Leg., R.S., Ch. 1232 (H.B. 500), Sec. 6, eff. January 1, 2014. Acts 2019, 86th Leg., R.S., Ch. 1073 (H.B. 1607), Sec. 2, eff. January 1, 2020.