81R10113 JE-F
By: Shapiro S.B. No. 1221
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain commercial lease revenue in
determining a taxable entity's total revenue for purposes of the
revised franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1011(g), Tax Code, is amended to
read as follows:
(g) A taxable entity shall exclude from its total revenue,
to the extent included under Subsection (c)(1)(A), (c)(2)(A), or
(c)(3), only the following flow-through funds that are mandated by
contract to be distributed to other entities:
(1) sales commissions to nonemployees, including
split-fee real estate commissions;
(2) the tax basis as determined under the Internal
Revenue Code of securities underwritten; [and]
(3) subcontracting payments handled by the taxable
entity to provide services, labor, or materials in connection with
the actual or proposed design, construction, remodeling, or repair
of improvements on real property or the location of the boundaries
of real property; and
(4) payments received by a landlord of commercial real
property from a tenant of the property to reimburse the landlord for
ad valorem taxes, franchise taxes, any tax or excise imposed on
rents, general or special assessments or other taxes, operating
expenses, including property and other insurance expenses,
utilities, maintenance expenses, management expenses, and similar
amounts generally expended for commercial real property.
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.