83R6785 BEF-F
By: Hinojosa S.B. No. 1447
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain flow-through funds by taxable
entities engaged in the business of transporting barite 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-10) to read as follows:
(g-10) A taxable entity that is primarily engaged in the
business of transporting barite 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 transportation
services on behalf of the taxable entity. For purposes of this
subsection, "barite" means barium sulfate (BaSO4), a mineral used
as a weighing agent in oil and gas exploration.
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.