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89(R) SB 2774 - Enrolled version - Bill Text
S.B. No. 2774
AN ACT
relating to the classification of certain entities as primarily
engaged in retail trade for purposes of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.0001(12), Tax Code, is amended to
read as follows:
(12) "Retail trade" means:
(A) the activities described in Division G of the
1987 Standard Industrial Classification Manual published by the
federal Office of Management and Budget;
(B) apparel rental activities classified as
Industry 5999 or 7299 of the 1987 Standard Industrial
Classification Manual published by the federal Office of Management
and Budget;
(C) the activities classified as Industry Group
753 of the 1987 Standard Industrial Classification Manual published
by the federal Office of Management and Budget;
(D) rental-purchase agreement activities
regulated by Chapter 92, Business & Commerce Code;
(E) activities involving the rental or leasing of
tools, party and event supplies, and furniture that are classified
as Industry 7359 of the 1987 Standard Industrial Classification
Manual published by the federal Office of Management and Budget;
[
and
]
(F) heavy construction equipment rental or
leasing activities classified as Industry 7353 of the 1987 Standard
Industrial Classification Manual published by the federal Office of
Management and Budget
; and
(G)
activities involving the rental of
industrial uniforms, industrial garments, and industrial linen
supplies that are classified as Industry 7213 or 7218 of the 1987
Standard Industrial Classification Manual published by the federal
Office of Management and Budget
.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2027.
______________________________
______________________________
President of the Senate
Speaker of the House
I hereby certify that S.B. No. 2774 passed the Senate on
April 23, 2025, by the following vote: Yeas 28, Nays 3.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2774 passed the House on
May 10, 2025, by the following vote: Yeas 127, Nays 0, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor