Texas Comptroller of Public Accounts    STAR System


201007003L




Use of the Multistate Tax Compact (MTC) Apportionment Formula is Prohibited for 
Texas Franchise Tax

The Texas franchise tax is apportioned to Texas using a single-factor 
apportionment formula based on gross receipts as specifically provided in Texas 
Tax Code Section 171.105. The apportionment provision in Texas Tax Code Chapter 
141, related to the Multistate Tax Compact (MTC), does not apply to the revised 
Texas franchise tax and entities may not elect to use the MTC's three-factor 
apportionment formula in lieu of the formula specified in Texas Tax Code 
Chapter 171.




ACCESSION NUMBER: 201007003L
SUPERSEDED: N
DOCUMENT TYPE: L
DATE: 07/01/2010
TAX TYPE: FRANCHISE