Texas 2011 - 82nd Regular

Texas House Bill HB1358 Compare Versions

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Old	New	Differences
1	1	82R21754 KLA-F
2	2	By: Howard of Fort Bend H.B. No. 1358
3	3	Substitute the following for H.B. No. 1358:
4	4	By: Otto C.S.H.B. No. 1358
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the exclusion of certain flow-through funds by
10	10	qualified courier and logistics companies in determining total
11	11	revenue for purposes 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-7) to read as follows:
15	15	(g-7) A taxable entity that is a qualified courier and
16	16	logistics 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	subcontracting payments made by the taxable entity to nonemployee
19	19	agents for the performance of delivery services on behalf of the
20	20	taxable entity. For purposes of this subsection, "qualified
21	21	courier and logistics company" means a taxable entity that:
22	22	(1) receives at least 80 percent of the taxable
23	23	entity's annual total revenue from its entire business from a
24	24	combination of at least two of the following courier and logistics
25	25	services:
26	26	(A) expedited same-day delivery of an envelope,
27	27	package, parcel, roll of architectural drawings, box, or pallet;
28	28	(B) temporary storage and delivery of the
29	29	property of another entity, including an envelope, package, parcel,
30	30	roll of architectural drawings, box, or pallet; and
31	31	(C) brokerage of same-day or expedited courier
32	32	and logistics services to be completed by a person or entity under a
33	33	contract that includes a contractual obligation by the taxable
34	34	entity to make payments to the person or entity for those services;
35	35	(2) during the period on which margin is based, is
36	36	registered as a motor carrier under Chapter 643, Transportation
37	37	Code, and if the taxable entity operates on an interstate basis, is
38	38	registered as a motor carrier or broker under the unified carrier
39	39	registration system, as defined by Section 643.001, Transportation
40	40	Code, during that period;
41	41	(3) maintains an automobile liability insurance
42	42	policy covering individuals operating vehicles owned, hired, or
43	43	otherwise used in the taxable entity's business, with a combined
44	44	single limit for each occurrence of at least $1 million;
45	45	(4) maintains at least $25,000 of cargo insurance;
46	46	(5) maintains a permanent nonresidential office from
47	47	which the courier and logistics services are provided or arranged;
48	48	(6) has at least five full-time employees during the
49	49	period on which margin is based;
50	50	(7) is not doing business as a livery service, floral
51	51	delivery service, motor coach service, taxicab service, building
52	52	supply delivery service, water supply service, fuel or energy
53	53	supply service, restaurant supply service, commercial moving and
54	54	storage company, or overnight delivery service; and
55	55	(8) is not delivering items that the taxable entity or
56	56	an affiliated entity sold.
57	57	SECTION 2. This Act applies only to a report originally due
58	58	on or after the effective date of this Act.
59	59	SECTION 3. This Act takes effect January 1, 2012.