Texas Register, Volume 12, Number 3, Pages 89-157, January 13, 1987 Page: 140
89-157 p. ; 28 cm.View a full description of this periodical.
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other method ion subsequent reports withot
the Itwitn consellt of thec ollptlialler A
,.po )0ratiot mri choose
(4) the corlptation's share of the
net profit from a partnership or joint ven-
ture, for partnership or joint venture years
ending during the 12 months ending on the
date upon which the tax is based. If the part-
nership or joint venture operates at a net
loss, the corporation's share ol the loss re-
suits in tero receipts The receipts should be
allocated to the principal place of business
of the partnership or joint venture A part-
nership's principal place of business is the
location of its day-to-day operations Where
a partnership's da -to-day operations are
.onduLcted equally In more than one state,
then thle principal place ot business will be
the location frollt which the partnership is
Irmanaged ot directed, i e tire nner e center,
(1) the corporation's share of the
gross receipts a partnership or joint Llventuiire
receives during the 12 tiorths ending o t he
date upn which the ta\ is hadtxl Ihe receipts
mulist he iliLtcated chased onI normal alhoca
nont rules (e g , location of payor for dilv-
dends and interest, place where scriLe is
perft formed, etic ) as though ihe partnership
did not exist and the receipts passed through
it dirctly to the corporation
(i ) li ic Iotl.ttoll o i 11,1 ilot t IS
used in Jet ermini lllwg whether dividends anid
interest aire attributable as receipts front bus
ie'ss done iii I lexs In accordance with :h at
test, dlidends and interest paid b\ a domes
I corlp orattion are includible iin gross retelpts
troni Ibusiness done itt this state, whereas di-
ldends and interest paid by a foreign cor
poratiion do not constitute lexas receipts
(see , 411 of this title (relating to Bankig
( i Ipoiralltlions) Ior allocation of diidenids
and interest recess ed byhv banking cortpora
!ns ) ( onlsequentlt I,
(A) di, idends and interest paid
bs a bank organized under the Banking
( ode of lexas are includible in gross receipts
ftom business done in this state, arid
(H) dividends and interest paid by
a nat ional hank w hose principal office is lo-
cated within exas are inicludible it gros re-
ceipts froni business done in this state.
(2()) (;oss receipts coning into the
hands of the receiver of a corporation iin re-
ceivership are gross receipts of the corpora-
tion
(21) A I)IS( (domestic international
sales corporation) of a I ,( (foreign sales
corporation) is treated the same as anv other
corporation doing business in 1 eras
(A) Receipts frirm the sale of
goods by a corporation to a DIS( or I S(
located in T exas a-ce not Texas receipts if tlhe
goods flow uninterrupted from the selling
corporation to a foreign purchaser outside
of Texas It a DIS( or I S( asselibles, pack
ages, repacks, imod ilices, stores. or otherwise
takes physical delivery of gxxds in Texas, the
receipts frorn the sale ot the gooxds are tfeas
receipts to the selling corporation(B) If a DIS(C or I (' has receipts
from sales of tangible personal property,
they are allocated hbai, on w, h re the pro
perty is delilfed, or whicie the ianislci of
possession takes place. (onlmission receipts
resulting from the performance of a service
are allocated to the loct cion where the ser-
vice is performed
(C() A colrnission l)DIS(' or FSC
lias elect to use the pe'Icentage of Iexats bus-
Imess of its patent hsfih does business in
Texas or report in accordance with the pro-
visions of this subparagraph
(22) Where a seller prepays freight
charges for goods and merchandise shipped
to a customer and enters the charges as a se-
parate irem in the sales invoice, the reuln-
bursenriient of the reighit charge h, i tthe cus-
toler does not l\Ce ise to gilss receipt" ini
the seller's trnchse tax calcilulationss
(21) regulators agentlc In living
whlch reqtresllle riefIlds o pi ll c lt'iLeases t,
a regulated public utilit, results in .i ia tJue
tion in receipts rather than an c\pent'se to the
uiitlht Adi\lusliitents as rlai be Itleiilre d ton
gross rctclpts, percentage la blsilness iii
Ilexas, arnd s t plus itist Ie tmade Kf each
eat dir. t g whil the n lcids" was in itleet.
dcpendig on whether rthi lt ite llteCse is
car t ledf (ti l (hi e pr1tr;l' l oks as is c ipts
onr s .i l, I.billts
(24) Charges made by a hotel, motel,
or other lodging facility for local telephone
calls at a fixed charge per call or per rental
unit are gross receipts for franchise tax cal-
culations. However, charges for long distance
charges are not gross receipts if the xldging
facility charges the same amount billed by
the telephone company for the call
(25) State or federal ta ref unds do
not constitute gross receipts
(26) Bad debt recoveries do riot
constitute gross receipts
(27) Fl the period in which re-
ceipts from installint'n sales are includible,
see 3 405 of tihls title relating to Surplus
and Undivided Pa:,,itsI
(28, It a ,ortporatiotn's books and
records do inot ,a.uriatelx reflect a division
between Texas and ousi of state receipts, the
comptroller nma priest in allocation of
Texas receipts basl upon a, information
available
(29) l)edictlons from fexas receipts
for sales of health care supplies and food ex-
empted fron sales anld use tax by the Texas
Tax (ode, 1 113 or 151 314(a), will be
allowed only for the sale of items shipped
from a location outside Texas directly to a
purchaser in Texas
(A) No deduction front Texas re-
ceipts is allowed if the items are subsequently
resold
(B) ThIe deduction does riot apply
when the manufacturer ships the items from
outside Texas to an outlet or storage facility
in Texas and later sells them
(30) Receipts from the sale of secur-
ities are allocated based on the location ofthe payor. When securities are sold over a
stock exchange and the seller cannot deter-
mine who the buyer is, 6.5%0 of the net gain
(or gross sales pricc, if the securities were an
inventory item) will be considered a Texas
receipt. The comptroller may use the location
of the actual payor whenever he can deter-
mine who the payor is. The issuance by a
corporation of its own capital stock does not
result in receipt
(31) ( lub membership fees (e.g.,
country clubs, automobile clubs, health
clubs, etc.) are receipts for a service and al-
located to the place where the club's em-
ployees or agents perform the service. For
example, membership dues of an automobile
club, which provides access to many benefits
for its members, will be allocated to the place
where the club's employees or agents arrange
for the benefits, regardless of where the ac-
tual benefit is provided (i e , the service the
club is performing is the providing of access
to benefits for its members)
(d)Transact ions not resulting in 'cxa
receipts
(I) Revtrnue f or airlines from i ticket
sales in [exa,, for air rtrael trom lex.s to
foreign countries or other states does not
constitute Texas receipts
(2) Receipt. of a telephone company
in I exas from interstate calls are not Texas
I ecelpts
(3) twh sale of oil, goxlds, or merch-
andise delivered to a third part!, carrier for
delivery outside the State of I exais does not
constitute gross receipts from business done
in this state regardless of 1 () B designation,
unless it is established that the oil, gosxs,
or merchandise were delivered to a purchaser
in Texas, or unless subscstlon (a)( I B) of
this section applies
(4) Interest or other payments by
the U S Ireasurt do nr ot institute Texas
receipts
(5) lemrnurage charges by a trans-
portation company for the detention of
equipment used in the transportation of
goods and merchandise im interstate com-
merce are not I e\as receil,t
(t ii I , as I'1i ,1 ( , : I I 04,
allows a deduction llom I exas receipt-, based
on sales of drug,, iedi nes, or othe, pro-
ducts exempted rtbl the i ,as Tax ( <xle,
151 313 and l'i t-isa), to the extent such
sales are shipped Irr outside the State of
fexas The sale f di ugs, rnedicneM, or other
products are exenip unlde i151 113 only
when piesfrihed o dispensed tor humans or
animals by lkensed pr ac onlei of the heal-
ing arts (onsequenll , the deduction in the
Texas Tax ( ode, 171 104, is allowable for
drugs, medicines, ol other products shipped
into Texas from outside the state only when
prescribed for humans or animals by a li-
censed practitioner.
(e) Transactions resulting in Texas
receipts.
(1) The sale of oil or gas by a Texas
producer to an interstate pipeline company,January 13, 1987 Texas Register 4
1, TexReg 140
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Texas. Secretary of State. Texas Register, Volume 12, Number 3, Pages 89-157, January 13, 1987, periodical, January 13, 1987; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth243847/m1/52/: accessed May 5, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.