By: Parker S.B. No. 1058
(In the Senate - Filed February 3, 2025; February 24, 2025,
read first time and referred to Committee on Business & Commerce;
March 31, 2025, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 10, Nays 0; March 31, 2025,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1058 By: Campbell
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain securities transaction
payments from the total revenue of a taxable entity that is a
registered securities market operator.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.0001(13-a), Tax Code, is amended to
read as follows:
(13-a) "Security," for purposes of Sections
171.1011(g), 171.1011(g-2), 171.1011(y), 171.1011(z), and
171.106(f) only, has the meaning assigned by Section 475(c)(2),
Internal Revenue Code, and includes instruments described by
Sections 475(e)(2)(B), (C), and (D) of that code.
SECTION 2. Section 171.1011, Tax Code, is amended by adding
Subsections (y) and (z) to read as follows:
(y) A taxable entity that is a registered securities market
operator shall exclude from its total revenue transaction rebate
payments made by the operator to a broker or dealer as part of a
securities transaction.
(z) For purposes of Subsection (y):
(1) "Broker" has the meaning assigned by 15 U.S.C.
Section 78c(a)(4).
(2) "Dealer" has the meaning assigned by 15 U.S.C.
Section 78c(a)(5).
(3) "Registered securities market operator" means an
entity that is:
(A) engaged in activities described in category
523210 of the 2022 North American Industry Classification System;
and
(B) subject to registration with and regulation
by the United States Securities and Exchange Commission or the
United States Commodity Futures Trading Commission.
(4) "Securities transaction" means the purchase or
sale of a security by a broker or dealer.
(5) "Transaction rebate payment" means an amount paid
to incentivize a broker or dealer to provide liquidity to the
market.
SECTION 3. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2026.
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