83R6531 TJB-F
By: Eltife S.B. No. 868
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain flow-through payments related
to petroleum and mineral interests 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 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 handled by the taxable
entity to provide services, labor, or materials in connection with
the actual or proposed design, construction, remodeling, or repair
of improvements on real property or the location of the boundaries
of real property; and
(4) subcontracting payments made to individuals for
services related to the acquisition or management of petroleum
interests or the performance of title or contract functions related
to the exploration, exploitation, or disposition of petroleum or
mineral interests.
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.