Tex. Tax Code Section 171.1055
Exclusion of Certain Receipts for Margin Apportionment

(a)

In apportioning margin, receipts excluded from total revenue by a taxable entity under Section 171.1011 (Determination of Total Revenue from Entire Business) may not be included in either the receipts of the taxable entity from its business done in this state as determined under Section 171.103 (Determination of Gross Receipts from Business Done in This State for Margin) or the receipts of the taxable entity from its entire business done as determined under Section 171.105 (Determination of Gross Receipts from Entire Business for Margin).

(b)

In apportioning margin, receipts derived from transactions between individual members of a combined group that are excluded under Section 171.1014 (Combined Reporting; Affiliated Group Engaged in Unitary Business)(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 (Determination of Gross Receipts from Business Done in This State for Margin), 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 (Determination of Gross Receipts from Business Done in This State for Margin) 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 (Combined Reporting; Affiliated Group Engaged in Unitary Business)(c)(3) may not be included in the receipts of the taxable entity from its entire business done as determined under Section 171.105 (Determination of Gross Receipts from Entire Business for Margin).

Amended by:

Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 5, eff. January 1, 2008.

Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 21, eff. January 1, 2008.

Source: Section 171.1055 — Exclusion of Certain Receipts for Margin Apportionment, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.171.htm#171.1055.

171.0001
General Definitions 171.001
Tax Imposed 171.002
Rates 171.0002
Definition of Taxable Entity 171.003
Increase in Rate Requires Voter Approval 171.0003
Definition of Passive Entity 171.0004
Definition of Conducting Active Trade or Business 171.0005
Definition of New Veteran-owned Business 171.006
Adjustment of Eligibility for No Tax Due, Discounts, and Compensation Deduction 171.0011
Additional Tax 171.051
Application for Exemption 171.052
Certain Corporations 171.053
Exemption--railway Terminal Corporation 171.055
Exemption--open-end Investment Company 171.056
Exemption--corporation with Business Interest in Solar Energy Devices 171.057
Exemption--nonprofit Corporation Organized to Promote County, City, or Another Area 171.058
Exemption--nonprofit Corporation Organized for Religious Purposes 171.059
Exemption--nonprofit Corporation Organized to Provide Burial Places 171.060
Exemption--nonprofit Corporation Organized for Agricultural Purposes 171.061
Exemption--nonprofit Corporation Organized for Educational Purposes 171.062
Exemption--nonprofit Corporation Organized for Public Charity 171.063
Exemption-nonprofit Corporation Exempt from Federal Income Tax 171.064
Exemption--nonprofit Corporation Organized for Conservation Purposes 171.065
Exemption--nonprofit Corporation Organized to Provide Water Supply or Sewer Services 171.066
Exemption--nonprofit Corporation Involved with City Natural Gas Facility 171.067
Exemption--nonprofit Corporation Organized to Provide Convalescent Homes for Elderly 171.068
Exemption--nonprofit Corporation Organized to Provide Cooperative Housing 171.069
Exemption--marketing Associations 171.070
Exemption--lodges 171.071
Exemption--farmers’ Cooperative Society 171.072
Exemption--housing Finance Corporation 171.073
Exemption--hospital Laundry Cooperative Association 171.074
Exemption--development Corporation 171.075
Exemption--cooperative Association 171.076
Exemption--cooperative Credit Association 171.077
Exemption--credit Union 171.079
Exemption--electric Cooperative Corporation 171.080
Exemption--telephone Cooperative Corporations 171.081
Exemption--corporation Exempt by Another Law 171.082
Exemption--certain Homeowners’ Associations 171.083
Exemption--emergency Medical Service Corporation 171.084
Exemption--certain Trade Show Participants 171.085
Exemption 171.086
Exemption: Political Subdivision Corporation 171.087
Exemption--nonprofit Corporation Organized for Student Loan Funds or Student Scholarship Purposes 171.088
Exemption--noncorporate Entity Eligible for Certain Exemptions 171.101
Determination of Taxable Margin 171.103
Determination of Gross Receipts from Business Done in This State for Margin 171.105
Determination of Gross Receipts from Entire Business for Margin 171.106
Apportionment of Margin to This State 171.107
Deduction of Cost of Solar Energy Device from Margin Apportioned to This State 171.108
Deduction of Cost of Clean Coal Project from Margin Apportioned to This State 171.109
Deduction of Relocation Costs by Certain Taxable Entities from Margin Apportioned to This State 171.111
Temporary Credit on Taxable Margin 171.151
Privilege Period Covered by Tax 171.152
Date on Which Payment Is Due 171.154
Payment to Comptroller 171.158
Payment by Foreign Taxable Entity Before Withdrawal from State 171.201
Initial Report 171.202
Annual Report 171.203
Public Information Report 171.204
Information Report 171.205
Additional Information Required by Comptroller 171.206
Confidential Information 171.207
Information Not Confidential 171.208
Prohibition of Disclosure of Information 171.209
Right of Owner to Examine or Receive Reports 171.210
Permitted Use of Confidential Information 171.211
Examination of Records 171.212
Report of Changes to Federal Income Tax Return 171.251
Forfeiture of Corporate Privileges 171.252
Effects of Forfeiture 171.253
Suit on Cause of Action Arising Before Forfeiture 171.254
Exception to Forfeiture 171.255
Liability of Director and Officers 171.256
Notice of Forfeiture 171.257
Judicial Proceeding Not Required for Forfeiture 171.258
Revival of Corporate Privileges 171.259
Banking Corporations and Savings and Loan Associations 171.260
Savings and Loan Association 171.301
Grounds for Forfeiture of Charter or Certificate of Authority 171.302
Certification by Comptroller 171.303
Suit for Judicial Forfeiture 171.304
Record of Judicial Forfeiture 171.305
Revival of Charter or Certificate of Authority After Judicial Forfeiture 171.306
Suit to Set Aside Judicial Forfeiture 171.307
Record of Suit to Set Aside Judicial Forfeiture 171.308
Corporate Privileges After Judicial Forfeiture Is Set Aside 171.309
Forfeiture by Secretary of State 171.310
Judicial Proceeding Not Required for Forfeiture by Secretary of State 171.311
Record of Forfeiture by Secretary of State 171.312
Revival of Charter or Certificate of Authority After Forfeiture by Secretary of State 171.313
Proceeding to Set Aside Forfeiture by Secretary of State 171.314
Corporate Privileges After Forfeiture by Secretary of State Is Set Aside 171.315
Use of Corporate Name After Revival of Charter or Certificate of Authority 171.316
Banking Corporations 171.317
Savings and Loan Associations 171.351
Venue of Suit to Enforce Chapter 171.352
Authority to Restrain or Enjoin 171.353
Appointment of Receiver 171.354
Agent for Service of Process 171.355
Service of Process on Secretary of State 171.361
Penalty for Disclosure of Information on Report 171.362
Penalty for Failure to Pay Tax or File Report 171.363
Wilful and Fraudulent Acts 171.401
Revenue Deposited in General Revenue Fund 171.501
Refund for Job Creation in Enterprise Zone 171.0525
Exemption--certain Insurance Companies 171.601
Definition 171.602
Tax Credit for Clean Energy Project 171.651
Definitions 171.652
Eligibility for Credit 171.653
Ineligibility for Credit for Certain Periods 171.654
Amount of Credit 171.655
Attribution of Expenses Following Transfer of Controlling Interest 171.656
Combined Reporting 171.657
Burden of Establishing Credit 171.658
Limitations 171.659
Carryforward 171.660
Assignment Prohibited 171.661
Application for Credit 171.662
Rules 171.663
Reporting of Estimates and Collection of Information 171.664
Deposit of Certain Revenue 171.665
Expiration 171.901
Definitions 171.902
Eligibility for Credit 171.903
Qualification 171.904
Certification of Eligibility 171.905
Amount of Credit 171.906
Carryforward 171.907
Application for Credit 171.908
Sale or Assignment of Credit 171.909
Rules 171.1011
Determination of Total Revenue from Entire Business 171.1012
Determination of Cost of Goods Sold 171.1013
Determination of Compensation 171.1014
Combined Reporting 171.1015
Reporting for Certain Partnerships in Tiered Partnership Arrangement 171.1016
E-z Computation and Rate 171.1055
Exclusion of Certain Receipts for Margin Apportionment 171.1121
Gross Receipts for Margin 171.1532
Business on Which Tax on Net Taxable Margin Is Based 171.2022
Exemption from Reporting Requirements 171.2125
Calculating Cost of Goods or Compensation in Professional Employer Services Arrangements 171.2515
Forfeiture of Right of Taxable Entity to Transact Business in This State 171.3015
Forfeiture of Certificate or Registration of Taxable Entity 171.3125
Revival of Certificate or Registration of Taxable Entity After Forfeiture by Secretary of State 171.4011
Allocation of Certain Revenue to Property Tax Relief Fund 171.9015
Eligible Costs and Expenses

Last Updated

2 months ago
(July 23, 2023)

§ 171.1055’s source at texas.gov