By: Villalba H.B. No. 3791
A BILL TO BE ENTITLED
AN ACT
relating to an exclusion from total revenue of certain payments
received from an insurance organization that owns a controlling
interest in a taxable entity for purposes of computing the
franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sec. 171.1011, Tax Code, is amended by adding new
Subsection (y) to read as follows:
(y) A taxable entity shall exclude from its total revenue,
to the extent included under Subsection (c)(1)(A), (c)(2)(A), or
(c)(3), payments received from an insurance organization that is
exempted from the franchise tax, if the insurance organization owns
a controlling interest in the taxable entity.
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, 2018.