Texas Comptroller of Public Accounts    STAR System


200006455R



STAR SUPERSEDED WITHOUT SUMMARY 

Accession No.(s): 200006455R

Document superseded on: 08/15/2013 



STATE OF TEXAS
COMPTROLLER OF PUBLIC ACCOUNTS
FRANCHISE TAX

Section 3.563.  Savings and Loan Associations.

(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 sec. 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 sec. 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 sec. 3.549(e)(13)  of this title (relating to Taxable 
Capital:  Apportionment) and sec. 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.


Effective Date:  June 28, 2000
Filed with Secretary of State:  June 8, 2000







ACCESSION NUMBER: 200006455R  
SUPERSEDED: Y 
DOCUMENT TYPE: R
DATE: 06/28/2000  
TAX TYPE: FRANCHISE