34 TAC §3.541
The Comptroller of Public Accounts adopts an amendment to §3.541,
concerning exemptions, without changes to the proposed text as published in
the July 11, 2003, issue of the Texas Register (28 TexReg 5491).
The adopted amendment to subsection (a)(2) corrects a reference to another
subsection. The adopted amendment in subsection (c)(1) reflects legislative
clarification provided by Senate Bill 1689, 77th Legislature, 2001. Subsection
(k) is added to incorporate legislative change, Senate Bill 1125, 77th Legislature,
2001, that entities organized under 12 U.S.C. §2071 and certain agricultural
credit associations are exempt from franchise tax. The adopted amendment to
subsection (i)(3)(B) deletes "certificate of authority" as a basis of the
tax based on the court decision of
Rylander v. Bandag
Licensing Corporation
. The adopted amendment to subsection (j)(3) reflects
a legislative change made by House Bill 2424, 78th Legislative Session, 2003.
Subsections (a), (a)(1), (b)(1), (b)(2), (c)(3), (c)(4), (c)(5), (d)(1), (d)(2),
(j)(2)(A), and (j)(2)(B) are being amended in accordance with agency policy.
No comments were received regarding adoption of the amendment.
This adoption is proposed under Tax Code, §111.002, which
provides the comptroller with the authority to prescribe, adopt, and enforce
rules relating to the administration and enforcement of the provisions of
Tax Code, Title 2.
The amendment implements Tax Code §§171.051-171.087
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on December 16, 2003.
TRD-200308595
Martin Cherry
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: January 5, 2004
Proposal publication date: July 11, 2003
For further information, please call: (512) 475-0387