{"data":{"id":"us-tx/tex.-local-government-code-501.161","jurisdiction":"us-tx","citation":"Tex. Local Government Code § 501.161","heading":"CERTAIN ECONOMIC INCENTIVES PROHIBITED.","body":"(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.\n(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.\nAdded by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.","path":["LOCAL GOVERNMENT CODE","TITLE 12. PLANNING AND DEVELOPMENT","SUBTITLE C1. ADDITIONAL PLANNING AND DEVELOPMENT PROVISIONS APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT","CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS","SUBCHAPTER D. CORPORATE POWERS AND LIMITATIONS RELATING TO PROJECTS"],"source_url":"https://statutes.capitol.texas.gov/Docs/LG/htm/LG.501.htm#501.161","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:27Z","sha256":"f621dc5e77e068f7c06c74c354064b44ecb31d0d4ee515fd18a9b4f8de3e4814","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-local-government-code-501.160","next":"us-tx/tex.-local-government-code-501.162"},"notice":"GroundRules: Original legal text. Not legal advice."}