Relating to the classification of certain entities as primarily engaged in retail trade for purposes of the franchise tax.

HB 1769 amends Texas' Tax Code to expand the definition of "retail trade" for franchise tax purposes. It adds specific rental activities to the definition, including apparel rental, tool/event supply leasing, heavy construction equipment rental, and industrial uniform/linen rental - each classified under specific federal industry codes. This change directly affects businesses in these newly classified categories, determining whether they pay franchise tax as retail entities. The bill applies only to tax reports due on or after January 1, 2027.