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 32 of 88
6/25/2012
and if the taxable entity operates on an interstate basis,
is registered as a motor carrier or broker under the unified carrier
registration system, as defined by Section 643.001, Transportation
Code, during that period;
(3) maintains an automobile liability insurance policy
covering individuals operating vehicles owned, hired, or otherwise
used in the taxable entity's business, with a combined single limit
for each occurrence of at least $1 million;
(4) maintains at least $25,000 of cargo insurance;
(5) maintains a permanent nonresidential office from which
the courier and logistics services are provided or arranged;
(6) has at least five full-time employees during the
period on which margin is based;
(7) is not doing business as a livery service, floral
delivery service, motor coach service, taxicab service, building
supply delivery service, water supply service, fuel or energy supply
service, restaurant supply service, commercial moving and storage
company, or overnight delivery service; and
(8) is not delivering items that the taxable entity or an
affiliated entity sold.
(h) If the taxable entity belongs to an affiliated group, the
taxable entity may not exclude payments described by Subsection (f),
(g), (g-1), (g-2), (g-3), or (g-4) that are made to entities that are
members of the affiliated group.
(i) Except as provided by Subsection (g), a payment made under
an ordinary contract for the provision of services in the regular
course of business may not be excluded.
(j) Any amount excluded under this section may not be included
in the determination of cost of goods sold under Section 171.1012 or
the determination of compensation under Section 171.1013.
(k) A taxable entity that is a staff leasing services company
shall exclude from its total revenue payments received from a client
company for wages, payroll taxes on those wages, employee benefits,
and workers' compensation benefits for the assigned employees of the
client company.
(l) For purposes of Subsection (g)(1):
(1) "Sales commission" means:
(A) any form of compensation paid to a person for