| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | By: Springer S.B. No. 653 | |
| 2 | 2 | ||
| 3 | 3 | ||
| 4 | 4 | A BILL TO BE ENTITLED | |
| 5 | 5 | AN ACT | |
| 6 | 6 | relating to the payment of franchise taxes by taxable entity that | |
| 7 | 7 | employs or contracts with a professional athlete. | |
| 8 | 8 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 9 | 9 | SECTION 1. Section 171.1012, Tax Code, is amended by adding | |
| 10 | 10 | Subsection (u) to read as follows: | |
| 11 | 11 | (u) Notwithstanding any other provision of this section, a | |
| 12 | 12 | taxable entity that employs or contracts with a professional | |
| 13 | 13 | athlete and that elects to subtract costs of goods sold may not | |
| 14 | 14 | include the cost to employ the professional athlete as labor costs | |
| 15 | 15 | when calculating the entity's costs of goods sold to the extent the | |
| 16 | 16 | amount paid to the athlete exceeds the limit on wage and cash | |
| 17 | 17 | compensation under Section 171.1013(c) as applied to the athlete. | |
| 18 | 18 | In this subsection, "professional athlete" has the meaning assigned | |
| 19 | 19 | by Section 406.095, Labor Code. | |
| 20 | 20 | SECTION 2. This Act applies only to a report originally due | |
| 21 | 21 | on or after the effective date of this Act. | |
| 22 | 22 | SECTION 3. This Act takes effect September 1, 2021. |