| (a) Effective date. The provisions of this section apply to
franchise tax reports originally due after January 1, 1992.
(b) Definitions. The following words and terms, when used in
this section, shall have the following meanings, unless the context clearly
indicates otherwise.
(1) Commercial domicile--The principal place from which the
trade or business of the entity is directed.
(2) Legal domicile--The legal domicile of a corporation is
its state of incorporation. The legal domicile of a partnership or trust is
the principal place of business of the partnership or trust. The principal
place of business of a partnership or trust is the location of its day-to-day
operations. Where the day-to-day operations are conducted equally or fairly
evenly in more than one state, the principal place of business is the commercial
domicile.
(3) Net worth--
(A) Net worth for a savings and loan association shall include
the amount of issued and outstanding common stock, preferred stock (to the
extent such preferred stock may be considered a part of the association's
net worth under generally accepted accounting principles) plus any retained
earnings and paid in surplus as well as such other items as the Texas savings
and loan commissioner may approve in writing for inclusion in the association's
net worth.
(B) Net worth for a mutual association shall include its pledged
savings liability and expense fund plus any retained earnings and such other
items as the Texas savings and loan commissioner may approve in writing for
inclusion in its net worth.
(4) Savings and loan association--A savings and loan association
or savings bank, whether organized under the laws of Texas, another state,
another country, or under federal law.
(c) Subject to tax. All savings and loan associations or savings
banks that are chartered, authorized to do business, or doing business in
Texas are subject to Texas franchise tax, in the same manner as other corporations,
beginning January 1, 1992.
(d) Other franchise tax provisions apply. All provisions of
this subchapter, concerning the Texas franchise tax, are applicable to savings
and loan associations and savings banks. However, this section will control
if it conflicts with another section of this subchapter.
(e) Apportionment of dividends and interest.
(1) This paragraph applies to franchise tax reports originally
due before January 1, 2000. If a savings and loan association or a savings
bank has its commercial domicile in Texas, all dividends and interest received,
including interest from the federal government unless otherwise excluded by §3.555(k)
of this title (relating to Earned Surplus: Computation), are considered to
be Texas gross receipts and gross receipts everywhere. If a savings and loan
association or a savings bank does not have its commercial domicile in Texas,
dividends and interest received are not considered to be Texas gross receipts
but all are considered to be gross receipts everywhere unless otherwise excluded
by §3.555(k) of this title (relating to Earned Surplus: Computation).
Interest received by a savings and loan association for mortgages owned by
the savings and loan association are considered Texas receipts if the savings
and loan association's commercial domicile is in Texas.
(2) For reports originally due on or after January 1, 2000,
a savings and loan association's dividends and/or interest are apportioned
to the legal domicile of the payor. See §3.549(e)(13) of this title (relating
to Taxable Capital: Apportionment) and §3.557(e)(13) of this title (relating
to Earned Surplus: Apportionment) for additional information on apportioning
dividends and interest.
(f) Mortgage loans.
(1) The sale of mortgages by a savings and loan association
are apportioned based on the legal domicile of the payor.
(2) Receipts from servicing loans are apportioned based on
where the servicing activities occur.
(g) Enforcement.
(1) The Texas Savings and Loan Commissioner shall appoint a
conservator under Finance Code, Title 3, Subtitle B or C, to pay the franchise
tax of a savings and loan association that is organized under the laws of
Texas and that the commissioner certifies as being delinquent in the payment
of the savings and loan association's franchise tax.
(2) Except as provided in paragraph (1) of this subsection,
no savings and loan association that is organized under the laws of Texas
or under federal law and has its main office in Texas will have its corporate
privileges forfeited by the comptroller for not paying its franchise tax.
(3) A savings and loan association that is organized under
the laws of Texas or under federal law and has its main office in Texas will
not have its charter forfeited for not paying its franchise tax.
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