Texas Tax Code Section 171 0003

14396 1 the entity is a general or limited partnership or a trust other than a business trust.

Texas tax code section 171 0003. Texas code is enacted as a part of the state s continuing statutory revision program begun by the texas legislative council in 1963 as directed by the legislature in chapter 448 acts of the 58th legislature regular session 1963 vernon s texas civil statutes. For more detailed codes research information including annotations and citations please visit westlaw. B subject to sections 171 003and 171 1016 the rate of the franchise tax is 0 375 percent of taxable margin for those taxable entities primarily engaged in retail or wholesale trade.

Read this complete texas tax code 171 0003. A subject to sections 171 003and 171 1016and except as provided by subsection b the rate of the franchise tax is 0 75 percent of taxable margin. Definition of passive entity.

Definition of passive entity. 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. 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.

Definition of passive entity on westlaw. 14395 text a an entity is a passive entity only if. Computation of tax 171 0003 definition of passive entity 171 003 increase in rate requires voter approval 171 0004 definition of conducting active trade or business 171 006 adjustment of eligibility for no tax due discounts and compensation deduction 171 0011 additional tax 171 051.

Texas tax code 171 0003 definition of passive entity. Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. Tax imposed 171 0002 definition of taxable entity 171 002 rates.

Findlaw codes may not reflect the most recent version of the law in your jurisdiction. 3 the entity does not receive more than 10 percent of its federal gross income from conducting an active trade or business.