The Comptroller of Public Accounts adopts an amendment to §3.591, concerning margin: apportionment, without changes to the proposed text as published in the October 30, 2009, issue of the Texas Register (34 TexReg 7581).

Language is added in subsection (a) to indicate that, where noted, the provisions of this section apply to reports other than those originally due on or after January 1, 2008.

Subsection (e)(16) is amended to implement House Bill 4611, 81st Legislature, 2009. Effective for reports originally due on or after January 1, 2010, if a lending institution categorizes a loan or security as "Securities Available for Sale" or "Trading Securities" under Financial Accounting Standard No. 115, the gross proceeds of the sale of that loan or security are considered gross receipts. Subsection (e)(19) is amended to clarify that the sourcing of a passive entity's net distributive loss is the principal place of business of the passive entity. The reference to paragraph (30) in subsection (e)(20) has been corrected to reference paragraph (29).

No comments were received regarding adoption of the amendment.

This amendment is adopted under Tax Code, §111.002, which provide the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

The amendment implements Tax Code, §§171.103, 171.1055, 171.106, and 171.1121.