| 1 | 1 | | 81R10113 JE-F |
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| 2 | 2 | | By: Shapiro S.B. No. 1221 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the exclusion of certain commercial lease revenue in |
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| 8 | 8 | | determining a taxable entity's total revenue for purposes of the |
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| 9 | 9 | | revised franchise tax. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 171.1011(g), Tax Code, is amended to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (g) A taxable entity shall exclude from its total revenue, |
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| 14 | 14 | | to the extent included under Subsection (c)(1)(A), (c)(2)(A), or |
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| 15 | 15 | | (c)(3), only the following flow-through funds that are mandated by |
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| 16 | 16 | | contract to be distributed to other entities: |
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| 17 | 17 | | (1) sales commissions to nonemployees, including |
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| 18 | 18 | | split-fee real estate commissions; |
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| 19 | 19 | | (2) the tax basis as determined under the Internal |
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| 20 | 20 | | Revenue Code of securities underwritten; [and] |
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| 21 | 21 | | (3) subcontracting payments handled by the taxable |
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| 22 | 22 | | entity to provide services, labor, or materials in connection with |
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| 23 | 23 | | the actual or proposed design, construction, remodeling, or repair |
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| 24 | 24 | | of improvements on real property or the location of the boundaries |
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| 25 | 25 | | of real property; and |
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| 26 | 26 | | (4) payments received by a landlord of commercial real |
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| 27 | 27 | | property from a tenant of the property to reimburse the landlord for |
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| 28 | 28 | | ad valorem taxes, franchise taxes, any tax or excise imposed on |
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| 29 | 29 | | rents, general or special assessments or other taxes, operating |
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| 30 | 30 | | expenses, including property and other insurance expenses, |
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| 31 | 31 | | utilities, maintenance expenses, management expenses, and similar |
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| 32 | 32 | | amounts generally expended for commercial real property. |
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| 33 | 33 | | SECTION 2. This Act applies only to a report originally due |
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| 34 | 34 | | on or after the effective date of this Act. |
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| 35 | 35 | | SECTION 3. This Act takes effect January 1, 2010. |
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