Bill > HB1769

This bill modifies the definition of "retail trade" in the Texas Tax Code by expanding the types of business activities that can be classified as retail trade for franchise tax purposes. Specifically, the bill adds a new category (G) to include activities involving the rental of industrial uniforms, industrial garments, and industrial linen supplies, which are classified under specific industry codes in the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget. This change means that businesses engaged in these uniform and linen rental services will now be considered part of retail trade for tax classification. The bill will apply to tax reports due on or after its effective date of January 1, 2027, which provides businesses and tax authorities time to prepare for the new classification. By broadening the definition of retail trade, the bill may impact how certain uniform and industrial linen rental businesses are taxed under the Texas franchise tax system.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1769