Texas Local Government Code 501.055 – Constituted Authority or Instrumentality
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(a) A corporation is a constituted authority and an instrumentality, within the meaning of the United States Department of the Treasury regulations and the Internal Revenue Service rulings adopted under Section 103, Internal Revenue Code of 1986, as amended, including regulations and rulings adopted under Section 103, Internal Revenue Code of 1954, and may act on behalf of the corporation’s authorizing unit for the specific public purpose authorized by the unit.
(b) A corporation is not a political subdivision or a political corporation for purposes of the laws of this state, including § 52, Article III, Texas Constitution.
Terms Used In Texas Local Government Code 501.055
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005