SECTION 203.13. Franchise Tax

(a) Any taxable entity, as defined under Tax Code §171.0002, contracting with the Commission and/or any taxable entity that is an applicant for a license or permit issued by the agency must certify in writing, on a form provided by the agency, that its right to transact business in Texas is active, that it is exempt from payment of the franchise tax or that it is an out-of-state entity that is not subject to the franchise tax.

(b) The making of a false statement as to franchise tax status on any license or permit application shall be grounds for disciplinary action.

(c) The making of a false statement as to franchise tax status with regards to a state contract shall be grounds for cancellation of the contract at the option of the agency by treating the statement as a material breach of contract.

Source Note: The provisions of this §203.13 adopted to be effective October 18, 2015, 40 TexReg 7065