Texas HB5181 amends the franchise tax rate for entities primarily engaged in retail or wholesale trade.

Texas HB5181 modifies the Texas Franchise Tax Code to set the tax rate at 0.375 percent of taxable margin for entities primarily engaged in retail or wholesale trade. This bill specifies that a taxable entity is considered primarily engaged in retail or wholesale trade if more than half of its revenue comes from selling its own products or products from affiliated entities, and it does not provide retail or wholesale utilities. The bill exempts entities with total revenue under $3.0 million from the tax.

Texas HB5181 amends the franchise tax rate for entities primarily engaged in retail or wholesale trade.

Texas HB5181 modifies the Texas Franchise Tax Code to set the tax rate at 0.375 percent of taxable margin for entities primarily engaged in retail or wholesale trade. This bill specifies that a taxable entity is considered primarily engaged in retail or wholesale trade if more than half of its revenue comes from selling its own products or products from affiliated entities, and it does not provide retail or wholesale utilities. The bill exempts entities with total revenue under $3.0 million from the tax.