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TX SB2774

Bill

Status

Passed

5/24/2025

Primary Sponsor

Adam Hinojosa

Click for details

Origin

Senate

89th Legislature Regular Session

AI Summary

  • Expands the definition of "retail trade" under the Texas franchise tax code to include rental activities for industrial uniforms, industrial garments, and industrial linen supplies classified under Industry 7213 or 7218 of the 1987 Standard Industrial Classification Manual

  • Entities qualifying as "retail trade" may be eligible for a lower franchise tax rate or different tax calculation method

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

  • Takes effect January 1, 2027

  • Passed the Senate 28-3 on April 23, 2025, and the House 127-0 on May 10, 2025

Legislative Description

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

Taxation

Last Action

Effective on . . . . . . . . . . . . . . . January 1, 2027

5/24/2025

Committee Referrals

Ways & Means4/28/2025
Finance4/3/2025

Full Bill Text

No bill text available