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 52 of 88
6/25/2012
included in either the receipts of the taxable entity from its
business done in this state as determined under Section 171.103 or the
receipts of the taxable entity from its entire business done as
determined under Section 171.105.
(b) In apportioning margin, receipts derived from transactions
between individual members of a combined group that are excluded under
Section 171.1014(c)(3) may not be included in the receipts of the
taxable entity from its business done in this state as determined
under Section 171.103, except that receipts ultimately derived from
the sale of tangible personal property between individual members of a
combined group where one member party to the transaction does not have
nexus in this state shall be included in the receipts of the taxable
entity from its business done in this state as determined under
Section 171.103 to the extent that the member of the combined group
that does not have nexus in this state resells the tangible personal
property without substantial modification to a purchaser in this
state. "Receipts ultimately derived from the sale" means the amount
paid for the tangible personal property by the third party purchaser.
(c) In apportioning margin, receipts derived from transactions
between individual members of a combined group that are excluded under
Section 171.1014(c)(3) may not be included in the receipts of the
taxable entity from its entire business done as determined under
Section 171.105.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1, Sec. 5, eff. January 1,
2008.
Acts 2007, 80th Leg., R.S., Ch. 1282, Sec. 21, eff. January 1,
2008.
Sec. 171.106. APPORTIONMENT OF MARGIN TO THIS STATE. (a)
Except as provided by this section, a taxable entity's margin is
apportioned to this state to determine the amount of tax imposed under
Section 171.002 by multiplying the margin by a fraction, the numerator
of which is the taxable entity's gross receipts from business done in
this state, as determined under Section 171.103, and the denominator
of which is the taxable entity's gross receipts from its entire
business, as determined under Section 171.105.