82R6419 KLA-F
By: Van de Putte S.B. No. 1347
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain flow-through funds by
qualified courier and logistics companies in determining total
revenue for purposes of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1011, Tax Code, is amended by adding
Subsection (g-7) to read as follows:
(g-7) A taxable entity that is a qualified courier and
logistics company shall exclude from its total revenue, to the
extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3),
subcontracting payments made by the taxable entity to nonemployee
agents for the performance of delivery services on behalf of the
taxable entity. For purposes of this subsection, "qualified
courier and logistics company" means a taxable entity that:
(1) receives at least 80 percent of the taxable
entity's annual total revenue from its entire business from a
combination of at least two of the following courier and logistics
services:
(A) expedited same-day delivery of an envelope,
package, parcel, roll of architectural drawings, box, or pallet;
(B) temporary storage and delivery of the
property of another entity, including an envelope, package, parcel,
roll of architectural drawings, box, or pallet; and
(C) brokerage of same-day or expedited courier
and logistics services to be completed by a person or entity under a
contract that includes a contractual obligation by the taxable
entity to make payments to the person or entity for those services;
(2) during all or part of the period on which margin is
based, is registered as a motor carrier under Chapter 643,
Transportation Code, and if the taxable entity operates on an
interstate basis, is registered as a motor carrier or broker under
the unified carrier registration system, as defined by Section
643.001, Transportation Code, during all or part of that period;
(3) maintains an automobile liability insurance
policy covering individuals operating vehicles owned, hired, or
otherwise used in the taxable entity's business, with a combined
single limit for each occurrence of at least $1 million;
(4) maintains at least $25,000 of cargo insurance;
(5) maintains a permanent nonresidential office from
which the courier and logistics services are provided or arranged;
(6) has at least five full-time employees during all
or part of the period on which margin is based;
(7) other than office equipment used in the conduct of
the taxable entity's business, does not own in the taxable entity's
entire business more than 20 percent of the equipment used to
directly provide courier and logistics services, including
bicycles, cars, trucks, vans, or tractor trailers;
(8) is not doing business as a livery service, floral
delivery service, motor coach service, taxicab service, building
supply delivery service, water supply service, fuel or energy
supply service, restaurant supply service, or commercial moving and
storage company; and
(9) is not delivering items that the taxable entity or
an affiliated entity sold.
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.