| 1 | 1 | | 83R19992 TJB-F |
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| 2 | 2 | | By: Hilderbran H.B. No. 1475 |
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| 3 | 3 | | Substitute the following for H.B. No. 1475: |
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| 4 | 4 | | By: Hilderbran C.S.H.B. No. 1475 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the exclusion of certain flow-through payments related |
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| 10 | 10 | | to petroleum and mineral interests in determining total revenue for |
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| 11 | 11 | | purposes of the franchise tax. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 171.1011, Tax Code, is amended by adding |
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| 14 | 14 | | Subsection (g-11) to read as follows: |
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| 15 | 15 | | (g-11) A taxable entity that is primarily engaged in the |
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| 16 | 16 | | business of performing landman services shall exclude from its |
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| 17 | 17 | | total revenue, to the extent included under Subsection (c)(1)(A), |
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| 18 | 18 | | (c)(2)(A), or (c)(3), subcontracting payments made by the taxable |
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| 19 | 19 | | entity to nonemployees for the performance of landman services on |
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| 20 | 20 | | behalf of the taxable entity. In this subsection, "landman |
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| 21 | 21 | | services" means: |
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| 22 | 22 | | (1) performing title searches for the purpose of |
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| 23 | 23 | | determining ownership of or curing title defects related to oil, |
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| 24 | 24 | | gas, or other related mineral or petroleum interests; |
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| 25 | 25 | | (2) negotiating the acquisition or divestiture of |
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| 26 | 26 | | mineral rights for the purpose of the exploration, development, or |
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| 27 | 27 | | production of oil, gas, or other related mineral or petroleum |
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| 28 | 28 | | interests; or |
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| 29 | 29 | | (3) negotiating or managing the negotiation of |
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| 30 | 30 | | contracts or other agreements related to the ownership of mineral |
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| 31 | 31 | | interests for the exploration, exploitation, disposition, |
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| 32 | 32 | | development, or production of oil, gas, or other related mineral or |
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| 33 | 33 | | petroleum interests. |
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| 34 | 34 | | SECTION 2. This Act applies only to a report originally due |
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| 35 | 35 | | on or after the effective date of this Act. |
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| 36 | 36 | | SECTION 3. This Act takes effect January 1, 2014. |
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