34 Tex. Admin. Code § 3.583 - Margin: Exemptions
(a) Effective date.
This section applies to franchise tax reports originally due on or after
January 1, 2008, except as otherwise noted.
(b) Application for exemption. An entity that
has not previously established an exemption from franchise tax with the
comptroller must apply for an exemption. An entity that is not a corporation,
but whose activities would qualify it for a specific exemption under Tax Code,
Chapter 171, Subchapter B, if it were a corporation, may qualify for the
exemption from the tax in the same manner and under the same conditions as a
corporation. See Tax Code, §
171.088
(Exemption--Noncorporate Entity Eligible for Certain Exemptions). For
provisional exemptions for certain entities, see subsection (i) of this
section; for trade show exemptions, see subsection (j) of this section.
(1) An entity that believes it is exempt from
franchise tax must furnish to the comptroller sufficient evidence to establish
its exempt status. The entity claiming the exemption bears the burden to
establish its entitlement to exempt status and any doubts will result in a
denial of the application for exemption.
(2) Except as otherwise provided in
subsections (f), (i), (j), and (n) of this section, each entity must submit to
the comptroller:
(A) a request for exemption
in writing, which may require using forms developed by the comptroller for
requesting exemptions, indicating the particular provision of Tax Code, Chapter
171, under which exemption is claimed;
(B) a detailed statement of both the entity's
past and current activities, if any, and its future plan of activities, each in
relation to the manner in which the entity proposes to implement the purposes
clause in its certificate of formation or application for
registration;
(C) an entity formed
or created under Texas law whose articles of organization or formation is on
file with the Texas Secretary of State need not submit copies of those
documents with its request for exemption. A Texas entity that is not required
to file organizational documents with the Texas Secretary of State must furnish
a signed and dated copy of its organizational documents with its exemption
request. If a non-Texas entity is required to file articles of organization or
formation with its home jurisdiction Secretary of State, or other designated
agency or officer, the entity must provide file-stamped copies of those filed
organizational or formation documents. If a non-Texas entity is not required to
file its articles of organization with the Secretary of State or other
authority of its home jurisdiction, it must furnish a signed and dated copy of
its organizational or formation documents with its exemption request;
and
(D) any additional information
the comptroller may require to make a determination whether the entity is
eligible for a franchise tax exemption.
(c) Actions by comptroller. Upon receipt of
an application for exemption, the comptroller's representative will review the
application and send the applicant a notification either granting the exemption
or denying the exemption, or requesting additional information.
(1) If the exemption is granted, the
exemption will be effective from the first date the entity was eligible for
exemption. If the entity paid any franchise taxes prior to the comptroller's
notification granting the exemption for a privilege period after the effective
date of the exemption, the entity may request a refund, subject to the
applicable statute of limitations. If the effective date of the exemption
occurs after the beginning of a privilege period, the entity must pay through
the end of such privilege period. An entity that has been subject to the tax
and becomes eligible for exemption is liable for the additional tax under Tax
Code, §
171.0011 (Additional
Tax).
(2) If the exemption is
denied or revoked, the entity may contest the denial or revocation by filing
all reports due as required by the comptroller; and
(A) paying all amounts of tax, penalty, and
interest due and requesting a refund hearing pursuant to the provisions of Tax
Code, Chapter 111 (Collection Procedures);
(B) paying all amounts of tax, penalty, and
interest due, accompanying the payment with a written protest, and filing suit
for the recovery of amounts paid pursuant to the provisions of Tax Code,
Chapter 112 (Taxpayers' Suits); or
(C) requesting a redetermination hearing
pursuant to Tax Code, §
111.009(Redetermination),
if the comptroller issues a deficiency or jeopardy determination.
(d) Qualification for
exemption.
(1) Entity subject to insurance
premium taxes.
(A) Insurance organization
authorized to do business in this state. An insurance, surety, guaranty,
fidelity or title insurance company, title insurance agent, or other insurance
organization authorized to engage in insurance business in this state, that is
required to pay an annual tax measured by its gross premium receipts is exempt
from payment of the franchise tax, regardless of whether any gross premiums
taxes are actually paid in any given year.
(B) Insurance organization not authorized to
do business in this state (non-admitted insurance organization). A non-admitted
insurance organization required to pay a gross premium receipts tax during a
tax year is exempted from the franchise tax for the same tax year. A
non-admitted insurance organization that is subject to an occupation tax or any
other tax that is imposed for the privilege of doing business in another state
or foreign jurisdiction, including a tax on gross premium receipts, is exempted
from the franchise tax.
(C) Period
covered. The exemption in this paragraph covers the periods upon which the
franchise tax is based, provided the gross premium receipts tax is required to
be paid on premiums received or written, as applicable, during the same period.
For example, an insurance organization's gross premium receipts tax is due and
payable on March 1, 2009, for premiums received during calendar year 2008. The
entity would be exempt from franchise tax for the 2009 annual report covering
the January 1, 2009 - December 31, 2009, privilege period, for margin
attributable to calendar year 2008. An entity is subject to the franchise tax,
however, for a tax year in any portion of which it is in violation of an order
issued by the Texas Department of Insurance under Insurance Code, §
2254.003(b)
(Refund or Discount Based on Excessive or Unfairly Discriminatory Premium
Rates), that is final after appeal or that is no longer subject to
appeal.
(2) Nonprofit
entity organized to promote county, city, or another area. A nonprofit entity
organized for the exclusive purpose of promoting the public interest of any
county, city, town, or other area within the state, must show that promotion of
the public interest is the exclusive purpose of the entity and not merely an
incidental result. An entity will not be considered to be promoting the public
interest if it engages in activities to promote or protect the private,
business, or professional interests of its members or patronage.
(3) Nonprofit entity organized for religious
purposes. A nonprofit entity seeking franchise tax exemption as a religious
organization must be an organized group of people regularly meeting for the
primary purpose of holding, conducting, and sponsoring religious worship
services according to the rites of their sect. The entity must be able to
provide evidence of an established congregation showing that there is an
organized group of people regularly attending these services. An entity that
supports and encourages religion as an incidental part of its overall purpose,
or one whose general purpose is furthering religious work or instilling its
membership with a religious understanding, will not qualify for exemption under
this provision. No part of the net earnings of the organization may inure to
the benefit of any private party or individual other than as reasonable
compensation for services rendered to the organization. Some examples of
entities that do not meet the requirements for exemption under this definition
are conventions or associations of churches, evangelistic associations,
churches with membership consisting of family members only, missionary
organizations, and groups that meet for the purpose of holding prayer meetings,
Bible study or revivals. Although these organizations do not qualify for
exemption under this category of exemption as religious organizations, they may
qualify for the exemption under Tax Code, §
171.063 (Exemption-Nonprofit
Corporation Exempt from Federal Income Tax), if they obtain an exemption from
the Internal Revenue Service (IRS) under Internal Revenue Code (IRC),
§501(c).
(4) Nonprofit entity
organized for public charity. A nonprofit entity seeking a franchise tax
exemption as organized for purely public charity must devote all or
substantially all of its activities to the alleviation of poverty, disease,
pain, and suffering by providing food, clothing, drugs, treatment, shelter, or
psychological counseling directly to indigent or similarly deserving members of
society with its funds derived primarily from sources other than fees or
charges for its services. If an entity engages in any substantial activity
other than the activities that are described in this paragraph, it will not be
considered as having been organized for purely public charity, and therefore,
will not qualify for exemption under this provision. No part of the net
earnings of the organization may inure to the benefit of any private party or
individual other than as reasonable compensation for services rendered to the
organization. Some examples of organizations that do not meet the requirements
for exemption under this definition are fraternal organizations, lodges,
fraternities, sororities, service clubs, veterans groups, mutual benefit or
social groups, professional groups, trade or business groups, trade
associations, medical associations, chambers of commerce, and similar
organizations. Even though not organized for profit and performing services
that are often charitable in nature, these types of organizations do not meet
the requirements for exemption under this provision. Although these
organizations do not qualify for exemption under this category of exemption as
charitable organizations, they may qualify for the exemption under Tax Code,
§
171.063, if they obtain an
exemption from the IRS under IRC, §501(c).
(5) Nonprofit entity organized for
educational purposes. A nonprofit entity seeking a franchise tax exemption as
an educational organization must show that its activities are devoted solely to
systematic instruction, particularly in the commonly accepted arts, sciences,
and vocations, and has a regularly scheduled curriculum, using the commonly
accepted methods of teaching, a faculty of qualified instructors, and an
enrolled student body or students in attendance at a place where the
educational activities are regularly conducted. An entity that has activities
consisting solely of presenting public discussion groups, forums, panels,
lectures, or other similar programs, may qualify for exemption under this
provision, if the presentations provide instruction in the commonly accepted
arts, sciences, and vocations. The entity will not be considered for exemption
under this provision if the systematic instruction or educational classes are
incidental to some other facet of the organization's activities. No part of the
net earnings of the organization may inure to the benefit of any private party
or individual other than as reasonable compensation for services rendered to
the organization. Some examples of organizations that do not meet the
requirements for exemption under this definition are professional associations,
business leagues, information resource groups, research organizations, support
groups, home schools, and organizations that merely disseminate information via
tangible or electronic media. Although these organizations do not qualify for
exemption under this category of exemption as educational organizations, they
may qualify for the exemption under Tax Code, §
171.063, if they obtain an
exemption from the IRS under IRC, §501(c).
(6) Certain homeowners' associations. A
nonprofit entity requesting franchise tax exemption as a homeowners'
association must prove that it meets all requirements to qualify for the
exemption. The entity must show that it is organized and operated to obtain,
manage, construct, and maintain the property in or of a residential condominium
or residential real estate development. The entity also must prove that the
condominium project, or, for a real estate development, the related property,
is legally restricted for use as residences. Furthermore, the entity must
establish that the collective resident owners of individual lots, residences or
units control at least 51% of the votes of the entity and that voting control,
however acquired, is not held by: a single individual or family; one or more
developers, declarants, banks, investors, or other similar parties. For
example, an association is formed for a residential condominium consisting of
12 units with each unit being entitled to one vote. Each of five individuals
separately owns and occupies one unit, a total of five units. A sixth
individual owns two units, living in one unit and leasing the other. A seventh
individual owns and leases the remaining five units. None of the owners are
related. In determining whether the collective resident owners control at least
51% of the votes of the organization, the sixth owner is a resident owner
regarding the one unit in which the owner lives and an investor regarding the
other. The collective resident owners, therefore, have a total of six votes.
Consequently, since the collective resident owners only have 50% of the votes
of the entity, the association does not meet the requirement that the resident
owners must control at least 51% of the votes of the organization. Accordingly,
the entity does not qualify for the franchise tax exemption as a homeowners'
association.
(e)
Revocation, withdrawal, or loss of exemptions.
(1) An entity that no longer qualifies for
the franchise tax exemption is required to notify the comptroller in writing of
its change in status. Except as provided in paragraph (2) of this subsection,
if at any time the comptroller has reason to believe that an exempt entity no
longer qualifies for exemption, the comptroller's representative will notify
the entity that its exempt status is under review. The comptroller's
representative may request additional information necessary to ascertain the
continued validity of the entity's exempt status. If the comptroller determines
that an entity is no longer entitled to its exemption, notification to that
effect will be sent to the entity. The effective date of revocation is the date
the entity no longer qualified for the exemption. The day immediately following
the date of withdrawal, loss, or revocation shall be the beginning date for
determining the entity's privilege period and for all other purposes related to
franchise tax.
(2) For nonprofit
entities granted an exemption under Tax Code, §
171.063, the revocation,
withdrawal, or loss of the federal income tax exemption automatically
terminates the franchise tax exemption. A nonprofit entity that no longer
qualifies for the federal income tax exemption which was the basis for
obtaining the franchise tax exemption must notify the comptroller in writing
within 30 days of its change in status and must provide a copy of the notice of
such revocation, withdrawal, or loss. The effective date of withdrawal or loss
is the date of withdrawal or loss of the federal tax exemption. The effective
date of a revocation is the date the IRS serves written notice of the
revocation to the non-profit entity or the date the IRS serves written notice
of revocation to the comptroller, whichever is earlier. The day immediately
following the date of withdrawal, loss, or revocation shall be the entity's
beginning date for determining its privilege periods and for all other purposes
of the franchise tax.
(3) An
electric cooperative entity previously exempted from franchise tax under Tax
Code, §
171.079 (Exemption--Electric
Cooperative Corporation), that subsequently participates in a joint powers
agency thereby loses its franchise tax exemption. The commencing date of
participation in the joint powers agency shall be considered the entity's
beginning date for purposes of determining the entity's privilege periods and
for all other purposes of the franchise tax. The electric cooperative must
notify the comptroller in writing that it is a participant in a joint powers
agency within 30 days after the commencing date of its participation.
(f) Federal exemption. An entity
meeting the requirements of any paragraph of this subsection establishes its
exempt status by furnishing to the comptroller a copy of a current exemption
letter from the IRS.
(1) A nonprofit entity
that has been exempted from federal income tax under the provisions of IRC,
§501(c)(3) - (8), (10), (19); or
(2) any entity that has been exempted from
federal income tax under the provisions of IRC, §501(c)(2) or (25), if the
entity or entities for which it holds title to property are either exempt from
or not subject to the franchise tax; and
(3) any entity that has been exempted from
federal income tax under IRC, §501(c)(16).
(g) Solar energy devices exemption. An entity
engaged solely in the business of manufacturing, selling, or installing solar
energy devices is exempted from the franchise tax. For purposes of this
section, the term "solar energy device" includes, but is not limited to:
(1) devices used in the conversion of solar
thermal energy into electrical or mechanical power;
(2) devices used in the photovoltaic (solar
cell) generation of electricity;
(3) systems used in the heating of water and
the heating and cooling of structures by use of solar collectors to gather the
sun's energy; and
(4) heat pumps
used as an integral part of a system designed to make the best combined use of
solar energy and conventional heating.
(h) Recycling operation exemption. An entity
engaged solely in the business of recycling sludge is exempt from franchise
tax. For purposes of this subsection, "sludge" means solid, semisolid, or
liquid waste generated from a municipal, commercial, or industrial wastewater
treatment plant, water supply treatment plant, or air pollution control
facility, excluding the treated effluent from a wastewater treatment plant, as
provided under Health and Safety Code, Chapter 361 (Solid Waste Disposal Act),
§361.003 (Definitions).
(i)
Provisional exemptions.
(1) If established
with the comptroller, the following entities may be granted a temporary
exemption from franchise tax:
(A) a nonprofit
entity that has applied for exemption from federal income tax under IRC,
§501(c)(3) - (8), (10), (19); or
(B) an entity that has applied for exemption
from federal income tax under IRC, §501(c)(2) or (25), if the entity or
entities for which it holds title to property is either exempt from or not
subject to the franchise tax; and
(C) an entity that has applied for exemption
from federal income tax under IRC, §501(c)(16).
(2) To obtain a temporary franchise tax
exemption with the comptroller, an entity that has applied for but has not yet
received a letter of exemption from the IRS must timely file, as provided in
paragraph (6) of this subsection, with the comptroller:
(A) a copy of the application for recognition
of exemption that has been filed with the IRS; and
(B) a copy of:
(i) a written notice from the IRS stating
that the application for recognition of exemption has been received;
or
(ii) a receipt as proof that the
application has been sent to the IRS by means of the United States Postal
Service, other carrier, or hand delivery to the IRS.
(3) Paragraph (2)(A) and (B)(ii)
of this subsection, applies only if the organization has filed its application
for recognition of exemption during the 14th or 15th month after its beginning
date. Beginning date means:
(A) for an entity
organized under the laws of this state, the date on which the entity's
certificate of formation or other similar document takes effect; and
(B) for a foreign entity, the date on which
the entity begins doing business in this state.
(4) If the information required in paragraph
(2)(A) and (B)(i) of this subsection is provided in a timely manner, as
provided in paragraph (6) of this subsection, a 90-day provisional franchise
tax exemption will be granted.
(5)
An entity qualifying under paragraph (2)(A) and (B)(ii) of this subsection,
will be granted a 90-day provisional exemption with the condition that a copy
of the notice required in paragraph (2)(B)(i) of this subsection be provided to
the comptroller within 30 days from the date of the letter notifying the entity
of the provisional exemption. If the IRS notification is not provided within
the 30-day period, the provisional exemption will be canceled. An entity whose
provisional exemption is canceled will be subject to all tax, penalty, and
interest that has accrued since the entity's beginning date.
(6) The information necessary for obtaining a
temporary franchise tax exemption will be considered to be provided to the
comptroller in a timely manner if:
(A) the
application for recognition of exemption is provided to the IRS within their
timely filing guidelines; and
(B)
the information required in paragraph (2)(A) and (B)(i) or (B)(ii) of this
subsection, is postmarked within 15 months after the day that is the last day
of a calendar month and that is nearest to the entity's beginning
date.
(7) Before the
expiration of the 90-day provisional exemption, the entity must provide the
comptroller a copy of the letter from the IRS showing that the decision on the
federal exemption is still pending or stating that the federal exemption is
either granted or denied.
(8) If
the comptroller is notified as required in paragraph (7) of this subsection,
that the decision on the federal exemption is still pending, an extension of
the provisional exemption may be considered.
(9) If the information in paragraph (7) of
this subsection, is not provided as required, the provisional exemption may be
canceled. If the provisional exemption is canceled, the entity will be
responsible for all franchise tax reports and payments that have become due
since its beginning date, and penalty and interest will be based on the
original due date of each report.
(10) An entity that provides the comptroller
a copy of the letter from the IRS stating that the federal exemption has been
granted will be considered for franchise tax exemption under subsection (f) of
this section.
(11) If the federal
exemption is denied by the IRS, the entity is responsible for all franchise tax
reports and payments that have become due since its beginning date and interest
will be based on the original due date of each report. Late filing and payment
penalties will be waived for any reports and payments postmarked within 90 days
after the date of the final denial of the federal exemption. The penalty waiver
process will begin when the entity submits a written request for penalty waiver
and a copy of the letter denying the federal exemption when filing reports and
payment.
(j) Trade show
exemption. See Tax Code, §
171.084 (Exemption--Certain
Trade Show Participants), for the requirements for exemption for certain
foreign entities that participate in trade shows in Texas.
(1) Notification to comptroller. Entities
need not apply for an exemption under Tax Code, §
171.084.
(A) If a foreign entity has obtained a
registration or has already notified the comptroller that it is doing business
in Texas, the entity must notify the comptroller in writing by the due date of
the first report for which the entity is exempt that the report and payment are
not due because the entity is exempt under Tax Code, §
171.084. After such
notification, the entity must notify the comptroller in writing only when the
organization no longer qualifies for exemption.
(B) If a foreign entity has not obtained a
registration or otherwise qualified to do business in the state, if applicable,
and if the entity has not notified the comptroller that it is doing business in
Texas, the entity must notify the comptroller in writing only when the entity
no longer qualifies for exemption under Tax Code, §
171.084. There is no need to
apply for exemption as long as the entity qualifies for the
exemption.
(2)
Solicitation periods. If the solicitation of orders is conducted during more
than five periods during the business period upon which tax is based as set out
in Tax Code, §
171.1532 (Business on Which
Tax on Net Taxable Margin is Based), the entity does not qualify for exemption.
(A) For example, an entity with its fiscal
year ending December 31, 2008, that filed a 2008 annual report, will not have
to file and pay a 2009 annual report if it did not solicit orders for more than
five periods during 2008.
(B) For
example, assume a foreign entity participated in its first trade show in Texas
on April 1, 2008. It also participated in trade shows in 2009 on January 1,
March 1, May 1, June 1, August 1, and October 1. The entity's fiscal year ends
are December 31, 2008, and 2009. The entity would be exempt for its initial
report and payment (covering the privilege periods from April 1, 2008 -
December 31, 2009) because it only solicited for one period from April 1, 2008
- December 31, 2008 (i.e., the business upon which the initial report is
based). The entity would be required to file a 2010 annual report and pay tax,
however, because it solicited for six periods from January 1, 2009 - December
31, 2009 (i.e., the period upon which the 2010 annual report is
based).
(3) One hundred
twenty hours. A solicitation period may not exceed 120 consecutive hours. If
the solicitation of orders is conducted during a single period of more than 120
consecutive hours, the entity does not qualify for exemption. For example, an
entity that meets the other requirements of Tax Code, §
171.084, will meet the 120
hours requirement if the solicitation occurs Monday - Friday, but will not meet
the 120 hours requirement if the solicitation occurs Monday - Saturday. If none
of the solicitation limits prescribed in this subsection are exceeded, an
entity may qualify for the exemption even if it leases space at a wholesale
center for the entire period upon which the tax is based.
(k) Credit association exemption. A
cooperative credit association incorporated under Agriculture Code, Chapter 55
(Cooperative Credit Associations), an entity organized under
12 U.S.C. §
2071, or an agricultural credit association
regulated by the Farm Credit Administration is exempt from franchise
tax.
(l) Bingo unit exemption. For
reports originally due on or after October 1, 2009, a bingo unit formed under
Occupations Code, Chapter 2001, Subchapter I-1 (Unit Accounting), is exempt
from franchise tax. "Unit" means two or more licensed authorized organizations
that conduct bingo at the same location joining together to share revenues,
authorized expenses, and inventory related to bingo operation.
(m) TexAmericas Center nonprofit corporation
exemption. Effective June 16, 2015, a nonprofit entity created by the
TexAmericas Center under Special District Local Laws Code, §
3503.111
(Nonprofit Corporations), is exempt from franchise tax.
(n) Disaster response exemption for an
out-of-state business entity. Effective June 16, 2015, an out-of-state business
entity, as defined in this subsection, is not required to file a franchise tax
report with or pay franchise tax to this state if the business done in this
state is limited to the performance of disaster- and emergency-related work
during a disaster response period. An out-of-state business entity that remains
in Texas after a disaster response period is not entitled to this exemption.
(1) Notification to comptroller. An entity
need not apply for an exemption from franchise tax under Business &
Commerce Code, §112.004 (Exemption of Out-of-State Business Entity From
Certain Obligations During Disaster Response Period). An entity must notify the
comptroller in writing only when the entity no longer qualifies for the
exemption.
(2) Definitions. For the
purpose of this subsection, the terms defined in subparagraphs (B) - (H) of
this paragraph have the meanings given in Business & Commerce Code,
§112.003 (Definitions).
(A) Affiliate--A
member of a combined group as that term is described by Tax Code §
171.1014 (Combined
Reporting; Affiliated Group Engaged in Unitary Business).
(B) Critical infrastructure--Equipment and
property that is owned or used by a telecommunications provider or cable
operator or for communications networks, electric generation, electric
transmission and distribution systems, natural gas and natural gas liquids
gathering, processing, and storage, transmission and distributions systems, and
water pipelines and related support facilities, equipment, and property that
serve multiple persons, including buildings, offices, structures, lines, poles,
and pipes.
(C) Declared state
disaster or emergency--A disaster or emergency event that occurs in this state
and:
(i) in response to which the governor
issues an executive order or proclamation declaring a state of disaster or a
state of emergency; or
(ii) that
the president of the United States declares a major disaster or
emergency.
(D) Disaster-
or emergency-related work--Repairing, renovating, installing, building,
rendering services, or performing other business activities relating to the
repair or replacement of critical infrastructure that has been damaged,
impaired, or destroyed by a declared state disaster or emergency.
(E) Disaster response period--
(i) the period that:
(I) begins on the 10th day before the date of
the earliest event establishing a declared state disaster or emergency by the
issuance of an executive order or proclamation by the governor or a declaration
of the president of the United States; and
(II) ends on the earlier of the 120th day
after the start date or the 60th day after the ending date of the disaster or
emergency period established by the executive order or proclamation or
declaration, or on a later date as determined by an executive order or
proclamation by the governor; or
(ii) the period that, with respect to an
out-of-state business entity:
(I) begins on
the date that the out-of-state business entity enters this state in good faith
under a mutual assistance agreement and in anticipation of a state disaster or
emergency, regardless of whether a state disaster or emergency is actually
declared; and
(II) ends on the
earlier of the date that the work is concluded or the seventh day after the
out-of-state business entity enters this state.
(F) In-state business entity--A domestic
entity or foreign entity that is authorized to transact business in this state
immediately before a disaster response period.
(G) Mutual assistance agreement--An agreement
to which one or more business entities are parties and under which a public
utility, municipally owned utility, or joint agency owning, operating, or
owning and operating critical infrastructure used for electric generation,
transmission, or distribution in this state may request that an out-of-state
business entity perform work in this state in anticipation of a state disaster
or emergency.
(H) Out-of-state
business entity--A foreign entity that enters this state at the request of an
in-state business entity under a mutual assistance agreement or is an affiliate
of an in-state business entity and;
(i) that:
(I) except with respect to the performance of
a disaster- or emergency-related work:
(-a-)
has no physical presence in this state and is not authorized to transact
business in this state immediately before a disaster response period;
and
(-b-) is not registered with
the secretary of state to transact business in this state, does not file a tax
report with this state or a political subdivision of this state, and does not
have nexus with this state for the purpose of taxation during the year
immediately preceding the disaster response period; and
(II) enters this state at the request of an
in-state business entity, the state, or a political subdivision of this state
to perform disaster- or emergency-related work in this state during the
disaster response period; or
(ii) that performs work in this state under a
mutual assistance agreement.
Notes
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