Texas Tax Code
§ 171.1014 — COMBINED REPORTING; AFFILIATED GROUP ENGAGED IN UNITARY BUSINESS
TX § 171.1014Title 2. STATE TAXATION · Part F. FRANCHISE TAX; CREDITS · Ch. 171. FRANCHISE TAX · Art. C. DETERMINATION OF TAXABLE MARGIN; ALLOCATION AND APPORTIONMENT
Statute text
View on source(a)Taxable entities that are part of an affiliated group engaged in a unitary business shall file a combined group report in lieu of individual reports based on the combined group's business. The combined group may not include a taxable entity that conducts business outside the United States if 80 percent or more of the taxable entity's property and payroll, as determined by factoring under Chapter 141, are assigned to locations outside the United States. In applying Chapter 141, if either the property factor or the payroll factor is zero, the denominator is one. The combined group may not include a taxable entity that conducts business outside the United States and has no property or payroll if 80 percent or more of the taxable entity's gross receipts, as determined under Sections 171.103, 171.105, and 171.1055, are assigned to locations outside the United States.
(b)The combined group is a single taxable entity for purposes of the application of the tax imposed under this chapter, including Section 171.002(d).
(c)For purposes of Section 171.101, a combined group shall determine its total revenue by:
(1)determining the total revenue of each of its members as provided by Section 171.1011 as if the member were an individual taxable entity;
(2)adding the total revenues of the members determined under Subdivision (1) together; and
(3)subtracting, to the extent included under Section 171.1011(c)(1)(A), (c)(2)(A), or (c)(3), items of total revenue received from a member of the combined group.
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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. 17, eff. January 1, 2008. Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 37(3), eff. January 1, 2008. Acts 2013, 83rd Leg., R.S., Ch. 1232 (H.B. 500), Sec. 11, eff. January 1, 2014.