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TX HB1769

Bill

Status

Introduced

1/8/2025

Primary Sponsor

Drew Darby

Click for details

Origin

House of Representatives

89th Legislature Regular Session

AI Summary

  • Expands the definition of "retail trade" under the Texas franchise tax to include activities involving the rental of industrial uniforms, industrial garments, and industrial linen supplies

  • Specifically adds businesses classified under Industry 7213 (linen supply) and Industry 7218 (industrial launderers) of the 1987 Standard Industrial Classification Manual to qualify as retail trade entities

  • Classification as retail trade allows affected businesses to use a reduced franchise tax rate of 0.375% instead of the standard 0.75% rate

  • Applies only to franchise tax reports originally due on or after the effective date

  • Takes effect January 1, 2027

Legislative Description

Relating to the classification of certain entities as primarily engaged in retail trade for purposes of the franchise tax.

Taxation

Last Action

Laid on the table subject to call

5/9/2025

Committee Referrals

Ways & Means3/14/2025

Full Bill Text

No bill text available