85R15257 E
By: Springer H.B. No. 3345
A BILL TO BE ENTITLED
AN ACT
relating to the definition of "passive entity" for the franchise
tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.0003(b), Tax Code, is amended to
read as follows:
(b) The income described by Subsection (a)(2) does not
include:
(1) rent; [or]
(2) income received by a nonoperator from mineral
properties under a joint operating agreement if the nonoperator is
a member of an affiliated group and another member of that group is
the operator under the same joint operating agreement; or
(3) interest income by a person in the business of
making loans to the general public.
SECTION 2. This Act is a clarification of existing law and
does not imply that existing law may be construed as inconsistent
with the law as amended by this Act.
SECTION 3. This Act takes effect September 1, 2017.