Amend CSHB 4 as follows:
(1) Amend Section 171.110(a), Tax Code, in SECTION 3.15, to
read as follows:
(a) Except as provided by Section 171.1101, the <The> net
taxable earned surplus of a taxable entity <corporation> is
computed by:
(1) determining the taxable entity's <corporation's>
reportable federal taxable income and making the following
adjustments:
(A) <,> subtracting <from that amount> any
amount included in reportable federal taxable income under Section
78 or Sections 951-964, Internal Revenue Code;
(B) except for an entity described in Section
171.001(b)(5)(B)(i), subtracting any taxable income or deductions
included under the provisions of Section 702(a) or 1366(a),
Internal Revenue Code, to the extent included in computing federal
taxable income from an S corporation or a partnership that is
subject to the earned surplus component of the tax imposed under
this chapter;
(C) adding, for each other taxable entity owned
in whole or part by the taxable entity, in proportion to the amount
of that ownership, any amount of passive income subtracted from
reportable federal taxable income under Section 171.1102 by the
other taxable entity;
(D) subtracting<, and> dividends received from a
subsidiary, associate, or affiliated corporation that does not
transact a substantial portion of its business or regularly
maintain a substantial portion of its assets in the United States;
(E) adding, for a taxable entity with more than
35 owners, directly or indirectly, to the extent excluded in
determining reportable federal taxable income:
(i) 100 percent of the 35 highest amounts
of compensation of each officer, director, and owner who owns 0.1
percent or more of the taxable entity; and
(ii) 50 percent of compensation of each
officer, director, and owner who owns 0.1 percent or more of the
taxable entity for which compensation is not added under
Subparagraph (i); and
(F) subtracting, for a taxable entity with more
than 35 owners, directly or indirectly, an amount up to $100,000 in
compensation paid to each officer, director, and owner for which
100 percent of compensation is added under Paragraph (E)(i);
(2) apportioning the taxable entity's <corporations's>
taxable earned surplus to this state as provided by Section
171.106(b) or (c), as applicable, to determine the taxable entity's
<corporation's> apportioned taxable earned surplus;
(3) adding the taxable entity's <corporation's> taxable
earned surplus allocated to this state as provided by Section
171.1061; and
(4) subtracting from that amount any allowable
deductions and any business loss that is carried forward to the tax
reporting period and deductible under Subsection (e).
(2) Amend Section 171.1101(a), Tax Code, in SECTION 3.16, to
read as follows:
(a) The net taxable earned surplus of a partnership is computed
by:
(1) determining the partnership's reportable federal
taxable income and making the following adjustments:
(A) except for an entity described in Section
171.001(b)(5)(B)(i), subtracting any taxable income or deductions
included under the provisions of Section 702(a) or 1366(a),
Internal Revenue Code, to the extent included in computing
reportable federal taxable income from a partnership that is
subject to the earned surplus component of the tax imposed under
this chapter;
(B) subtracting, 100% of compensation, to the
extent included in determining reportable federal taxable income,
of each officer, director, and partner who owns 0.1 percent or more
of the partnership;
(C) adding, for a partnership with more than 35
partners, directly or indirectly, to the extent excluded in
determining reportable federal taxable income:
(i) 100 percent of the 35 highest amounts
of compensation of each officer, director, and partner who owns 0.1
percent or more of the partnership; and
(ii) 50 percent of compensation of each
officer, director, and partner who owns 0.1 percent or more of the
taxable entity for which compensation is not added under
Subparagraph (i); and
(C) subtracting, for a partnership with more than
35 partners, directly or indirectly, an amount up to $100,000 in
compensation paid to each officer, director, and partner for which
100 percent of compensation is added under Paragraph (B)(i);
(2) apportioning the partnership's taxable earned
surplus to this state as provided by Section 171.106(b) or (c), as
applicable, to determine the partnership's apportioned taxable
earned surplus;
(3) adding the partnership's taxable earned surplus
allocated to this state as provided by Section 171.1061; and
(4) subtracting from that amount any allowable
deductions and any business loss that is carried forward to the tax
reporting period and deductible under Subsection (d).
(3) Amend the bill by creating a new Section 4.04 of the
bill and renumbering subsequent sections accordingly, to read as
follows:
Amend Section 151 of the tax code by creating a new
subsection to read as follows:
SECTION 4.04. Sec. 151.0043. "MOTOR VEHICLE REPAIR
SERVICES." (a) "Motor vehicle repair services" means the repair,
remodeling, maintenance, or restoration of a motor vehicle,
including testing or diagnostic services, body repair and painting,
engine repair, transmission repair, exhaust system repair, brake
repair, and air conditioning repair.
(b) "Motor vehicle repair services: does not include any
vehicle emissions tests required by law, safety inspections tests
required by law, and other similar tests required by law.
Sec. 151.0044. "MOTOR VEHICLE WASH OR DETAIL SERVICES." (a)
"Motor vehicle wash or detail services" includes:
(1) cleaning of the exterior or interior of a motor
vehicle, including washing, waxing, polishing, buffing, detailing,
shampooing, vacuuming, finishing, or steam cleaning; or
(2) providing an automated facility that provides the
services described in Subdivision (1).
(b) "Motor vehicle wash or detail services: does not
include the services described in Subsection (a)(1) if the services
are provided through the use or operation of a token-or
coin-operated self-service or automated facility.
(4) Add a new SECTION 4.031 (page 45, between lines 6 and 7)
to read as follows:
SECTION 4.031. Section 151.0101 (a), Tax Code, is amended to
read as follows:
(a) "Taxable services" means:
(1) amusement services;
(2) cable television services;
(3) personal services:
(4) motor vehicle parking and storage services;
(5) the repair, remodeling, maintenance, and restoration of
tangible personal property, including motor vehicle repair
services, except:
(A) aircraft;
(B) a ship, boat, or other vessel, other than:
(i) a taxable boat or motor as defined by Section 160.001;
(ii) a sports fishing boat; or
(iii) any other vessel used for pleasure; and
(C) <the repair, maintenance, and restoration of a motor
vehicle; and>
<(D)> the repair, maintenance, creation, and restoration of a
computer program, including its development and modification, not
sold by the person performing the repair, maintenance, creation, or
restoration service;
(6) telecommunications services;
(7) credit reporting services;
(8) debt collection services;
(9) insurance services;
(10) information services;
(11) real property services;
(12) data processing services;
(13) real property repair and remodeling;
(14) security services; <and>
(15) telephone answering services; and
(16) motor vehicle wash and detail services.