Petition for Writ of Mandamus - Filed - Supreme Court of Texas

TAX CODE CHAPTER 171. FRANCHISE TAX
http://www.statutes.legis.state.tx.us/Docs/TX/htm/TX.171.htm
Page 18 of 88
6/25/2012
Sec. 171.062. EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR
PUBLIC CHARITY. A nonprofit corporation organized for purely public
charity is exempted from the franchise tax.
Acts 1981, 67th Leg., p. 1694, ch. 389, Sec. 1, eff. Jan. 1, 1982.
Sec. 171.063. EXEMPTION-NONPROFIT CORPORATION EXEMPT FROM
FEDERAL INCOME TAX. (a) The following corporations are exempt from
the franchise tax:
(1) a nonprofit corporation exempted from the federal
income tax under Section 501(c)(3), (4), (5), (6), (7), (8), (10), or
(19), Internal Revenue Code which in the case of a nonprofit hospital
means a hospital providing community benefits that include charity
care and government-sponsored indigent health care as set forth in
Subchapter D, Chapter 311, Health and Safety Code;
(2) a corporation exempted under Section 501(c)(2) or
(25), Internal Revenue Code, if the corporation or corporations for
which it holds title to property is either exempt from or not subject
to the franchise tax; and
(3) a corporation exempted from federal income tax under
Section 501(c)(16), Internal Revenue Code.
(b) A corporation is entitled to an exemption under this
section based on the corporation's exemption from the federal income
tax if the corporation files with the comptroller evidence
establishing the corporation's exemption.
(c) A corporation's exemption under Subsection (b) of this
section is established by furnishing the comptroller with a copy of
the Internal Revenue Service's letter of exemption issued to the
corporation.
(d) If the Internal Revenue Service has not timely issued to a
corporation a letter of exemption, evidence establishing the
corporation's provisional exemption under this section is sufficient
if the corporation timely files with the comptroller evidence that the
corporation has applied in good faith for the federal tax exemption.
The evidence must be filed not later than the 15th month after the day
that is the last day of a calendar month and that is nearest to the
date of the corporation's charter or certificate of authority.
(e) An exemption established under Subsection (c) or (d) of