| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 81R10986 CBH-F | |
| 2 | 2 | By: Hilderbran H.B. No. 3835 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to the exclusion of flow-through funds from total revenue | |
| 8 | 8 | for purposes of the franchise tax. | |
| 9 | 9 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 10 | 10 | SECTION 1. Section 171.1011(g), Tax Code, is amended to | |
| 11 | 11 | read as follows: | |
| 12 | 12 | (g) A taxable entity shall exclude from its total revenue, | |
| 13 | 13 | to the extent included under Subsection (c)(1)(A), (c)(2)(A), or | |
| 14 | 14 | (c)(3), [only the following] flow-through funds that are mandated | |
| 15 | 15 | by contract to be distributed to other entities[: | |
| 16 | 16 | [(1) sales commissions to nonemployees, including | |
| 17 | 17 | split-fee real estate commissions; | |
| 18 | 18 | [(2) the tax basis as determined under the Internal | |
| 19 | 19 | Revenue Code of securities underwritten; and | |
| 20 | 20 | [(3) subcontracting payments handled by the taxable | |
| 21 | 21 | entity to provide services, labor, or materials in connection with | |
| 22 | 22 | the actual or proposed design, construction, remodeling, or repair | |
| 23 | 23 | of improvements on real property or the location of the boundaries | |
| 24 | 24 | of real property]. | |
| 25 | 25 | SECTION 2. This Act applies only to a report originally due | |
| 26 | 26 | on or after the effective date of this Act. | |
| 27 | 27 | SECTION 3. This Act takes effect January 1, 2010. |