Texas Comptroller Proposes Regulation on Franchise Tax Definitions, Apportionment, Gross Receipts Reporting Requirements

The Texas Comptroller of Public Accounts Nov. 13 proposed a regulation to amend franchise tax provisions for corporate income tax purposes. The proposal includes measures to: 1) revise the definition of gross receipts to reflect that non-receipt items excluded when calculating total revenue aren’t used in calculating gross receipts; 2) modify a provision specifying the operative federal tax year for references to the Internal Revenue Code; 3) provide guidance on determining Texas gross receipts and gross receipts from an entity’s entire business, respectively, for a regulated investment company and an employee retirement plan; 4) add gross receipt reporting requirements for ...