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" in Section 171.0001(12) by adding new categories of activities that qualify. Specifically, it includes activities involving the rental of industrial uniforms, garments, and linen supplies classified under Industry 7213 or 7218 of the 1987 Standard Industrial Classification Manual. Additionally, it retains existing classifications while removing the conjunction "and" before the new category.

The bill clarifies that these changes will only apply to reports originally due on or after the effective date of January 1, 2027. This legislative update aims to ensure that the franchise tax classification accurately reflects the evolving nature of retail trade activities, particularly in the rental sector.

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