Form 05-158-A, Texas Franchise Tax Report aka the "long form", calculates the franchise tax based on either of two rates: the rate for retail and wholesale business, and the rate for all other businesses. The rate for retail and wholesale businesses is half the rate for all others.
Form 05-169, Texas Franchise Tax EZ Computation Report, calculates the franchise tax using a single rate.
See the Texas Comptroller website here for the current year's franchise tax rates.
When completing the long form in TaxSlayer Pro, the rate used is determined by the 4-digit Standard Industry Classification (SIC) code entered in the return heading. If no code is entered, the maximum rate is used.
To enter or check the SIC code in the Texas Franchise Tax Report in TaxSlayer Pro, from the TX CORP Menu select:
- Heading Information
- SIC Code - Enter the 4-digit SIC code that is appropriate for the majority of the business's total revenue, or if it's a combined group the code that reflects the overall business activity of the group.
If you don't know the business's SIC code, you can look it up at the OSHA website here.
Additional Information: