Business

For a displaced business to be entitled to a fixed payment, TxDOT must determine the following:
  • The business owns or rents personalty:
    • that must be moved as a result of displacement;
    • for which expenses are incurred due to displacement; and
    • from which the business must vacate or relocate due to displacement.
  • The business cannot be relocated without a substantial loss of its existing patronage (clientele or net earnings).
  • The business is not part of a commercial enterprise having more than three other entities not being acquired by TxDOT that are under the same ownership and engaged in the same or similar business activities.
  • The business is not operated in a displacement structure solely for the purpose of renting such structure to others.
  • The business is not operated at the displacement site solely for the purpose of renting the site to others.
  • The business contributed materially to displacee income during the two taxable years preceding the taxable year in which displacement occurs or during such other period as TxDOT determines equitable.
Two or more displaced legal entities constitute a single business entitled to a single fixed payment. In making this determination, consider all relevant factors including the extent to which:
  • the same premises and equipment are shared;
  • substantially identical or interrelated business functions are carried out and business and financial affairs are commingled;
  • the entities are held out to the public as one business; and
  • one person (or closely related persons) owns, controls, or manages the entities’ affairs.