Texas 2009 - 81st Regular

Texas House Bill HB3131 Compare Versions

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Old	New	Differences
1	1	81R28996 KLA-D
2	2	By: Hartnett, Jackson H.B. No. 3131
3	3	Substitute the following for H.B. No. 3131:
4	4	By: Hartnett C.S.H.B. No. 3131
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the exclusion of certain payments from the total
10	10	revenue of a qualified destination management company for purposes
11	11	of the franchise tax.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 171.1011, Tax Code, is amended by adding
14	14	Subsection (g-6) to read as follows:
15	15	(g-6) A taxable entity that is a qualified destination
16	16	management company shall exclude from its total revenue, to the
17	17	extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3),
18	18	payments made to other persons to provide services, labor, or
19	19	materials in connection with the provision of destination
20	20	management services. In this subsection:
21	21	(1) "Destination management services" means the
22	22	following services:
23	23	(A) transportation management;
24	24	(B) booking and managing entertainers;
25	25	(C) coordination of tours or recreational
26	26	activities;
27	27	(D) meeting, conference, or event registration;
28	28	(E) meeting, conference, or event staffing;
29	29	(F) event management; and
30	30	(G) meal coordination.
31	31	(2) "Qualified destination management company" means
32	32	a taxable entity that:
33	33	(A) receives at least 80 percent of the entity's
34	34	annual total revenue from its entire business from providing or
35	35	arranging for the provision of a combination of at least four
36	36	destination management services;
37	37	(B) maintains a permanent nonresidential office
38	38	from which the destination management services are provided or
39	39	arranged;
40	40	(C) has at least three full-time employees;
41	41	(D) spends at least one percent of the entity's
42	42	annual gross receipts from its entire business to market the
43	43	destinations with respect to which destination management services
44	44	are provided;
45	45	(E) has at least 80 percent of the clients with
46	46	which the entity enters into destination management services
47	47	contracts located outside this state;
48	48	(F) other than office equipment used in the
49	49	conduct of the entity's business, does not own equipment used to
50	50	directly provide destination management services, including motor
51	51	coaches, limousines, sedans, dance floors, decorative props,
52	52	lighting, podiums, sound or video equipment, or equipment for
53	53	catered meals;
54	54	(G) is not doing business as a caterer;
55	55	(H) does not provide services for weddings;
56	56	(I) does not own a venue at which events or
57	57	activities for which destination management services are provided
58	58	occur; and
59	59	(J) is not a subsidiary of another entity that,
60	60	and is not a member of an affiliated group another member of which:
61	61	(i) is doing business as, or owns or
62	62	operates another entity doing business as, a caterer; or
63	63	(ii) owns or operates a venue described by
64	64	Paragraph (I).
65	65	SECTION 2. This Act applies only to a report originally due
66	66	on or after the effective date of this Act.
67	67	SECTION 3. This Act takes effect January 1, 2010.