LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 31, 2025 TO: Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1058 by Parker (relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB1058, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($560,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026$02027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromProperty Tax Relief Fund3042026$02027($560,000)2028($580,000)2029($600,000)2030($620,000) Fiscal AnalysisThe bill would exclude certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator.A taxable entity that is a registered securities market operator would be able to exclude from its total revenue rebate payments made by the operator to a broker or dealer as part of a securities transaction.The bill would add definitions for terms related to such transactions.The bill would be effective January 1, 2026.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 31, 2025
TO: Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1058 by Parker (relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator.), Committee Report 1st House, Substituted
TO: Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1058 by Parker (relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator.), Committee Report 1st House, Substituted
Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1058 by Parker (relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator.), Committee Report 1st House, Substituted
SB1058 by Parker (relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB1058, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($560,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1058, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($560,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($560,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
General Revenue-Related Funds, Five- Year Impact:
2026 $0
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 $0
2027 ($560,000)
2028 ($580,000)
2029 ($600,000)
2030 ($620,000)
Fiscal Analysis
The bill would exclude certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator.A taxable entity that is a registered securities market operator would be able to exclude from its total revenue rebate payments made by the operator to a broker or dealer as part of a securities transaction.The bill would add definitions for terms related to such transactions.The bill would be effective January 1, 2026.
Methodology
Currently there are plans for two registered securities market operators to begin operations in Texas. A new Texas Stock Exchange reportedly plans to begin trading in early 2026. And the Chicago NYSE reportedly will reincorporate as Texas NYSE.Transaction rebate payments made by operators domiciled in the state to brokers or dealers would be revenue apportionable to the state for franchise tax. This estimate assumes transaction rebate payment volume for these regional exchanges would initially equal 5 percent of that of the NASDAQ exchange, with first revenue implications occurring for franchise tax reports due in 2027.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, RStu, SD, KK
JMc, RStu, SD, KK