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House Bill 2766 |
House Author: Hunter |
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Effective: 1-1-14 |
Senate Sponsor: Whitmire et al. |
Previous law required a taxable entity, when computing its taxable margin for purposes of the franchise tax, to exclude certain subcontracting payments from its total revenue as flow-through funds whose distribution to other entities is mandated by contract, but only when those subcontracting payments were handled by the taxable entity for the provision of services, labor, or material in connection with certain projects relating to improvements on real property or the location of the boundaries of real property. House Bill 2766 amends the Tax Code to clarify the requirement by requiring instead the exclusion, as flow-through funds, of subcontracting payments made under either a contract or a subcontract entered into by the taxable entity for such purposes and to include among those purposes the actual or proposed remediation of improvements on real property.