Tex. Tax Code § 171.001 · Subchapter A. DEFINITIONS; TAX IMPOSED
TAX IMPOSED.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A franchise tax is imposed on each taxable entity that does business in this state or that is chartered or organized in this state.
(b) The tax imposed under this chapter extends to the limits of the United States Constitution and the federal law adopted under the United States Constitution.
(c) The tax imposed under this section or Section 171.0011 is not imposed on an entity if, during the period on which the report is based, the entity qualifies as a passive entity as defined by Section 171.0003.
(d) Notwithstanding Subsection (a), the tax imposed under this chapter is not imposed on a taxable entity that qualifies as a new veteran-owned business as defined by Section 171.0005 until the earlier of:
(1) the fifth anniversary of the date on which the taxable entity begins doing business in this state; or
(2) the date the taxable entity ceases to qualify as a new veteran-owned business as defined by Section 171.0005.
Notes and commentary — not statutory text
History
Acts 1981, 67th Leg., p. 1691, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1991, 72nd Leg., ch. 901, Sec. 53(a), eff. Aug. 26, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.01, eff. Jan. 1, 1992; Acts 1993, 73rd Leg., ch. 765, Sec. 7, eff. Aug. 30, 1993; Acts 1995, 74th Leg., ch. 914, Sec. 12, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 1002, Sec. 1, eff. Jan. 1, 1996; Acts 1997, 75th Leg., ch. 1185, Sec. 1, eff. Jan. 1, 1998; Acts 1999, 76th Leg., ch. 184, Sec. 1, eff. Jan. 1, 2000; Acts 2003, 78th Leg., ch. 209, Sec. 31, 32, eff. Oct. 1, 2003.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 2, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 5, eff. January 1, 2008.
Acts 2015, 84th Leg., R.S., Ch. 329 (S.B. 1049), Sec. 4, eff. January 1, 2016.
Acts 2015, 84th Leg., R.S., Ch. 329 (S.B. 1049), Sec. 9(2), eff. January 1, 2020.
Acts 2021, 87th Leg., R.S., Ch. 859 (S.B. 938), Sec. 5, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 859 (S.B. 938), Sec. 9(3), eff. January 1, 2026.
Acts 2025, 89th Leg., R.S., Ch. 335 (H.B. 346), Sec. 2(3), eff. September 1, 2025.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/TX/htm/TX.171.htm
- Text hash
- sha256 089cb267ff60ae20c2661c1d2bc738ffe0253f4ba0a1a3d6e9172448ffa0f6c3
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Cited by 3 provisions
Provisions in this library whose text cites Tex. Tax Code § 171.001. Each shows the citation as that text prints it.
Tax Code
- Tex. Tax Code § 171.0011ADDITIONAL TAX.Printed as Section 171.001(c)
- Tex. Tax Code § 171.063EXEMPTION-NONPROFIT CORPORATION EXEMPT FROM FEDERAL INCOME TAX.Printed as Section 171.001(d)
- Tex. Tax Code § 171.9205CREDIT FOR CERTAIN TAXABLE ENTITIES THAT OWE NO TAX.Printed as Section 171.001(d) or 171.002(d)
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.