84R13307 BEF-F
By: Capriglione H.B. No. 2943
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain payments from 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
amending Subsection (g) and adding Subsection (g-9) 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; and
(2) the tax basis as determined under the Internal
Revenue Code of securities underwritten[; and
[(3) subcontracting payments made under a contract or
subcontract entered into 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].
(g-9) A taxable entity shall exclude from its total revenue,
to the extent included under Subsection (c)(1)(A), (c)(2)(A), or
(c)(3), subcontracting payments made under a contract or
subcontract entered into 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. A taxable entity is not required to segregate money
in order to qualify for the exclusion under this subsection.
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, 2016.