Texas § 501.161 CERTAIN ECONOMIC INCENTIVES PROHIBITED.

Texas Statutes

§ 501.161 — CERTAIN ECONOMIC INCENTIVES PROHIBITED.

Texas § 501.161

Code LGLocal Government Code

This text of Texas § 501.161 (CERTAIN ECONOMIC INCENTIVES PROHIBITED.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Local Government Code Code Ann. § 501.161 (2026).

Text

Sec. 501.161. CERTAIN ECONOMIC INCENTIVES PROHIBITED.

(a)In this section, "related party" means a person who owns at least 80 percent of the business enterprise to which the sales and use tax would be rebated as part of an economic incentive.

(b)Notwithstanding any other provision of this subtitle, a corporation may not offer to provide an economic incentive for a business enterprise whose business consists primarily of purchasing taxable items using a resale certificate and then reselling those items to a related party.

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Sec. 501.161. CERTAIN ECONOMIC INCENTIVES PROHIBITED. (a) In this section, "related party" means a person who owns at least 80 percent of the business enterprise to which the sales and use tax would be rebated as part of an economic incentive.
(b) Notwithstanding any other provision of this subtitle, a corporation may not offer to provide an economic incentive for a business enterprise whose business consists primarily of purchasing taxable items using a resale certificate and then reselling those items to a related party.