TX
Texas House Bill HB3684

Texas 2025 - 89th Regular

Texas House Bill HB3684 Compare Versions

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1-89R16486 SRA-F
2- By: Capriglione, Button H.B. No. 3684
3- Substitute the following for H.B. No. 3684:
4- By: Vasut C.S.H.B. No. 3684
1+89R8403 SRA-F
2+ By: Capriglione H.B. No. 3684
3+
4+
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the exclusion of certain securities transaction
10- payments from the total revenue of a taxable entity that is a
11- registered securities market operator.
10+ payments from the total revenue of a taxable entity that is an
11+ exchange or a member of an exchange for purposes of the franchise
12+ tax.
1213 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1314 SECTION 1. Section 171.0001(13-a), Tax Code, is amended to
1415 read as follows:
1516 (13-a) "Security," for purposes of Sections
1617 171.1011(g), 171.1011(g-2), 171.1011(y), 171.1011(z), and
1718 171.106(f) only, has the meaning assigned by Section 475(c)(2),
1819 Internal Revenue Code, and includes instruments described by
1920 Sections 475(e)(2)(B), (C), and (D) of that code.
2021 SECTION 2. Section 171.1011, Tax Code, is amended by adding
2122 Subsections (y) and (z) to read as follows:
22- (y) A taxable entity that is a registered securities market
23- operator shall exclude from its total revenue transaction rebate
24- payments made by the operator to a broker or dealer as part of a
25- securities transaction.
23+ (y) A taxable entity shall exclude from its total revenue:
24+ (1) if the entity is an exchange, transaction rebate
25+ payments made by the exchange to a member of the exchange as part of
26+ a securities transaction; and
27+ (2) if the entity is a member of an exchange,
28+ transaction rebate payments made to the member by the exchange as
29+ part of a securities transaction.
2630 (z) For purposes of Subsection (y):
27- (1) "Broker" has the meaning assigned by 15 U.S.C.
28- Section 78c(a)(4).
29- (2) "Dealer" has the meaning assigned by 15 U.S.C.
30- Section 78c(a)(5).
31- (3) "Registered securities market operator" means an
32- entity that is:
33- (A) engaged in activities described in category
34- 523210 of the 2022 North American Industry Classification System;
35- and
36- (B) subject to registration with and regulation
37- by the United States Securities and Exchange Commission or the
38- United States Commodity Futures Trading Commission.
39- (4) "Securities transaction" means the purchase or
40- sale of a security by a broker or dealer.
41- (5) "Transaction rebate payment" means an amount paid
42- to incentivize a broker or dealer to provide liquidity to the
43- market.
31+ (1) "Exchange" has the meaning assigned by 15 U.S.C.
32+ Section 78C(a)(1).
33+ (2) "Member" has the meaning assigned by 15 U.S.C.
34+ Section 78C(a)(3)(A).
35+ (3) "Securities transaction" means the purchase or
36+ sale of a security on an exchange by a member of the exchange.
37+ (4) "Transaction rebate payment" means an amount paid
38+ to compensate a member of the exchange in order to provide liquidity
39+ to the market.
4440 SECTION 3. This Act applies only to a report originally due
4541 on or after the effective date of this Act.
4642 SECTION 4. This Act takes effect January 1, 2026.