81R7261 CBH-F
By: Hartnett H.B. No. 3131
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain payments 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-6) to read as follows:
(g-6) A taxable entity that is a qualified destination
management company shall exclude from its total revenue, to the
extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3),
payments made to other persons to provide services, labor, or
materials in connection with the provision of destination
management services. In this subsection:
(1) "Destination management services" means the
following services:
(A) transportation management;
(B) booking and managing entertainers;
(C) coordination of tours or recreational
activities;
(D) meeting, conference, or event registration;
(E) meeting, conference, or event staffing;
(F) event management; and
(G) meal coordination.
(2) "Qualified destination management company" means
a taxable entity that:
(A) receives at least 80 percent of the entity's
annual total revenue from its entire business from providing or
arranging for the provision of a combination of at least four
destination management services;
(B) maintains a permanent nonresidential office
from which the destination management services are provided or
arranged;
(C) has at least three full-time employees during
all or part of the period on which margin is based;
(D) other than office equipment used in the
conduct of the entity's business, does not own equipment used to
directly provide destination management services, including motor
coaches, limousines, sedans, dance floors, decorative props,
lighting, podiums, sound or video equipment, or equipment for
catered meals;
(E) is not doing business as a caterer;
(F) does not provide services for weddings; and
(G) does not own a venue at which events or
activities for which destination management services are provided
occur.
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.