83R9259 TJB-D
By: Whitmire S.B. No. 1315
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain flow-through funds 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(g), Tax Code, is amended to
read as follows:
(g) A taxable entity shall exclude from its total revenue,
to the extent included under Subsection (c)(1)(A), (c)(2)(A), or
(c)(3), only the following flow-through funds that are mandated by
contract or subcontract to be distributed to other entities:
(1) sales commissions to nonemployees, including
split-fee real estate commissions;
(2) the tax basis as determined under the Internal
Revenue Code of securities underwritten; and
(3) subcontracting payments under subcontracts
entered into [handled] by the taxable entity to provide services,
labor, or materials in connection with the actual or proposed
design, construction, remodeling, remediation, or repair of
improvements on real property or the location of the boundaries of
real property.
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, 2014.