R-1999-23 - National Flood Insurance Program

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ria",,, CGo.. '" ~ ~~t '!i .- -l'ex"'- TEXAS COMPTROLLER OF PUBLIC ACCOUNTS AUSTIN, TexAS 78774-0100 e e August 31, 1999 CITY OF LA PORTE DEVELOPMENT CORPORATION 604 W FAIRHONT PKWY LA PORTE, TX 77571 Dear Corporate Agent: The Texas Secretary of State has notified the Comptroller that you are the registered agent for a newly. established nonprofit corporation in Texas. As the manager of the Tax Policy Division, I want to take this opportunity to provide some information about the Texas franchise tax as it applies to nonprofit corporations. Franchise tax is a tax on all corporations chartered or doing business in Texas. Certain nonprofit corporations may qualify for.an exemption, but the law requires the corporation to apply for .the exemption. Under the law, your corporation has 15 months from its charter or doing-business date to establish its exemption. I've enclosed Franchise Tax Rule 3.541 and our publication entitled SUbchapter B. Exemptions. To request a franchise tax exemption because your corporation has obtained an exemption from the Internal Revenue Service (IRS) under Internal Revenue Code Sections 501(c) (2) through (8), (10), (16), (19), or (25), all you need to do is send us a letter requesting a franchise tax exemption and a copy of the letter your corporation received from the IRS gran~ing ~he federal exemption. The IRS deter- mination letter will specify the section of the code under.which the federal exemption was granted. If you feel your corporation may qualify for franchise tax exemption, but obtaining a federal exemption does not apply to your corporation, send us your written request for franchise tax exemption and include the following: · the Subchapter B section..under which your corporation is exempt; · copies of the Articles of Incorporation and other governing documents including any bylaws; · any published information regarding the activities of the organization; · a detailed description of the organization's activities including a two-year bUdget; and · a daytime telephone number and the name of a contact person. Franchise tax exemption requests should be sent to the Comptroller of Public Accounts, Exempt Organizations Section, Post Office Box 13528, Austin, Texas 78711-3528. If you need further informati~n, please call our Tax Assistance Section toll free at"1-800-252-1381. Enclosures Faml C1W70 (R1IV.7""'1 29