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A BILL TO BE ENTITLED
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AN ACT
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relating to apportionment of margin from receipts from the sale of |
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locomotives for purposes of the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.106, Tax Code, is amended by adding |
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Subsection (i) to read as follows: |
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(i) The portion of a taxable entity's receipts from the sale |
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of locomotives sold for use in interstate commerce that are |
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receipts from business done in this state is determined by |
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multiplying the taxable entity's total receipts from the sale of |
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locomotives sold for use in interstate commerce by a fraction, the |
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numerator of which is the number of miles of railway track in this |
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state and the denominator of which is the number of miles of railway |
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track in the United States. In this subsection, "locomotive" means |
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self-propelled railroad equipment consisting of one or more units |
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designed to operate on stationary steel rails or electromagnetic |
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guideways. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2018. |