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What constitutes Texas receipts for franchise tax apportionment purposes?

1. Sales of real estate located in Texas, including royalties for oil, gas, or minerals;

2. Sales of tangible personal property delivered to a purchaser in Texas;

3. Sales of tangible personal property delivered to a purchaser in another state in which you are not subject to taxation (the “throwback rule”);

4. Services performed within Texas;

5. Rentals of property situated in Texas;

6. Revenues from use of trademarks, franchises or licenses (the phrase “trademark, franchise, or license does not include the sale of computer software or programs) within Texas;

7. The net gain from the sales of investments or capital assets (see definitions in the law); a net loss is treated as a zero receipt; (see special rules in the law governing these types of sales);

8. All other business receipts within Texas including dividends as of the date declared from Texas payors and interest from Texas payors.

Caution - Content on this page is general in nature.  More specific rules and limitations may apply to your situation.  Always seek the advice of a tax professional before making important financial decisions.