H.B. No. 1769 amends the Texas Tax Code to redefine the classification of certain entities as primarily engaged in retail trade for franchise tax purposes. The bill updates the definition of "retail trade" by including specific activities from the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget. Notably, it adds new categories for heavy construction equipment rental or leasing activities and introduces a new classification for activities involving the rental of industrial uniforms, garments, and linen supplies.

The bill removes the conjunction "and" from the previous list of activities and replaces it with a new category (G) that encompasses the rental of industrial supplies. This change aims to clarify and expand the scope of what constitutes retail trade under the franchise tax framework. The provisions of this Act will apply to reports originally due on or after its effective date of January 1, 2027.

Statutes affected:
Introduced: Tax Code 171.0001 (Tax Code 171)
House Committee Report: Tax Code 171.0001 (Tax Code 171)