Tex.
Tax Code Section 171.001
Tax Imposed
(a)
A franchise tax is imposed on each taxable entity that does business in this state or that is chartered or organized in this state.(b)
The tax imposed under this chapter extends to the limits of the United States Constitution and the federal law adopted under the United States Constitution.(c)
The tax imposed under this section or Section 171.0011 (Additional Tax) is not imposed on an entity if, during the period on which the report is based, the entity qualifies as a passive entity as defined by Section 171.0003 (Definition of Passive Entity).(d)
Notwithstanding Subsection (a), the tax imposed under this chapter is not imposed on a taxable entity that qualifies as a new veteran-owned business as defined by Section 171.0005 (Definition of New Veteran-owned Business) until the earlier of:(1)
the fifth anniversary of the date on which the taxable entity begins doing business in this state; or(2)
the date the taxable entity ceases to qualify as a new veteran-owned business as defined by Section 171.0005 (Definition of New Veteran-owned Business).(d)
Repealed by Acts 2021, 87th Leg., R.S., Ch. 859 (S.B. 938), Sec. 9(3), eff. January 1, 2026.
Source:
Section 171.001 — Tax Imposed, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.171.htm#171.001
(accessed Apr. 13, 2024).