Bill Analysis
Concerning the classification of a taxable entity as one that engages in retail or wholesale, HB 2126 would not exempt the sale of telephones and prepaid calling cards from being considered a business which engages in retail of wholesale.
Vote Recommendation Notes
Since the sale of telephones and prepaid calling cards cannot directly be considered a telecommunications service, and is a sale of tangible goods, it should be considered a retail trade activity. By allowing firms to be taxed properly, this upholds our principle of limited government, and we support this legislation. However, we would like to note that Texans would greatly benefit if the franchise tax system were phased out over a period of several years.
