82R2568 JE-F
By: Howard of Fort Bend H.B. No. 877
A BILL TO BE ENTITLED
AN ACT
relating to the definition of controlling interest for purposes of
the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.0001(8), Tax Code, is amended to
read as follows:
(8) "Controlling interest" means:
(A) for a corporation, either more than 50
percent, owned directly or indirectly, of the total combined voting
power of all classes of stock of the corporation, or more than 50
percent, owned directly or indirectly, of the beneficial ownership
interest in the voting stock of the corporation;
(B) for a partnership, [association, trust, or
other entity other than a limited liability company,] more than 50
percent, owned directly or indirectly, of the capital or[,]
profits[, or beneficial] interest in the partnership[,
association, trust, or other entity]; [and]
(C) for an association, [for a limited liability
company, either] more than 50 percent, owned directly or
indirectly, of the capital or profits interest in the association;
(D) for a trust, more than 50 percent, owned
directly or indirectly, of the current beneficial interest in the
trust corpus or income;
(E) for a limited liability company, either more
than 50 percent, owned directly or indirectly, of the total
membership interest of the limited liability company or more than
50 percent, owned directly or indirectly, of the beneficial
ownership interest in the membership interest of the limited
liability company; or
(F) for any other entity, more than 50 percent,
owned directly or indirectly, of the capital or profits interest in
the entity [total membership interest of the limited liability
company or more than 50 percent, owned directly or indirectly, of
the beneficial ownership interest in the membership interest of the
limited liability company].
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, 2012.