Texas § TX.171.001 - TAX IMPOSED
Full text of Texas The Texas Constitution § TX.171.001 — TAX IMPOSED, with citation guidance and answers to common questions.
§ TX.171.001. TAX IMPOSED
TAX IMPOSED. (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 . 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.
Frequently Asked Questions About Texas § TX.171.001
What does The Texas Constitution § TX.171.001 cover?
Section TX.171.001 ("TAX IMPOSED") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § TX.171.001?
A common citation format is "The Texas Constitution § TX.171.001" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § TX.171.001 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.