81R3920 KLA-F
By: McCall H.B. No. 1999
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain amounts from the total revenue
of certain taxable entities for purposes of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1011, Tax Code, is amended by adding
Subsection (g-5) to read as follows:
(g-5) A taxable entity described by Section
171.0002(c)(4)(A) and the assets of which, other than real estate
the entity occupies for business purposes, are in direct holdings
of real estate used as a hotel shall exclude from its total revenue,
to the extent included under Subsection (c)(1)(A), (c)(2)(A), or
(c)(3), the operating costs of a hotel occupying that real estate.
For purposes of this subsection:
(1) "Hotel" means a building in which members of the
public obtain sleeping accommodations for consideration and in
relation to which the hotel occupancy tax imposed under Chapter 156
is required to be collected. The term includes a motel.
(2) "Operating costs of a hotel" means:
(A) direct departmental expenses, including:
(i) wages paid and the cost of benefits
provided to hotel employees;
(ii) costs of hotel supplies;
(iii) laundry expenses;
(iv) travel agent commissions and
reservation costs;
(v) telephone expenses;
(vi) food and beverage costs; and
(vii) all other direct costs incurred in
the business of providing, for consideration, sleeping
accommodations, food and beverage services, and other services
customarily offered at hotels;
(B) unallocated costs, including:
(i) general and administrative costs;
(ii) costs of utility services;
(iii) repair and maintenance costs;
(iv) sales and marketing expenses;
(v) third-party hotel base and incentive
management fees;
(vi) property taxes;
(vii) property and casualty insurance
premiums;
(viii) accident expenses; and
(ix) operating lease expenses; and
(C) allocated central costs of third-party hotel
managers and franchisors, and property improvement fund
contributions.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2010.