SB2774 amends the Texas Tax Code to redefine "retail trade" for franchise tax purposes.

SB2774 amends the Texas Tax Code to redefine "retail trade" to include specific activities such as apparel rental, rental-purchase agreements, and the rental of tools, party and event supplies, and furniture. The bill specifies these activities by referencing the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget. The changes apply to reports due on or after the bill's effective date of January 1, 2027.

SB2774 amends the Texas Tax Code to redefine "retail trade" for franchise tax purposes.

SB2774 amends the Texas Tax Code to redefine "retail trade" to include specific activities such as apparel rental, rental-purchase agreements, and the rental of tools, party and event supplies, and furniture. The bill specifies these activities by referencing the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget. The changes apply to reports due on or after the bill's effective date of January 1, 2027.