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A BILL TO BE ENTITLED
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AN ACT
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relating to the exclusion of certain amounts from the total revenue |
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of certain taxable entities for purposes of the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1011, Tax Code, is amended by adding |
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Subsection (g-5) to read as follows: |
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(g-5) A taxable entity described by Section |
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171.0002(c)(4)(A) and the assets of which, other than real estate |
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the entity occupies for business purposes, are in direct holdings |
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of real estate used as a hotel shall exclude from its total revenue, |
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to the extent included under Subsection (c)(1)(A), (c)(2)(A), or |
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(c)(3), the operating costs of a hotel occupying that real estate. |
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For purposes of this subsection: |
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(1) "Hotel" means a building in which members of the |
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public obtain sleeping accommodations for consideration and in |
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relation to which the hotel occupancy tax imposed under Chapter 156 |
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is required to be collected. The term includes a motel. |
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(2) "Operating costs of a hotel" means: |
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(A) direct departmental expenses, including: |
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(i) wages paid and the cost of benefits |
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provided to hotel employees; |
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(ii) costs of hotel supplies; |
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(iii) laundry expenses; |
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(iv) travel agent commissions and |
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reservation costs; |
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(v) telephone expenses; |
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(vi) food and beverage costs; and |
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(vii) all other direct costs incurred in |
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the business of providing, for consideration, sleeping |
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accommodations, food and beverage services, and other services |
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customarily offered at hotels; |
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(B) unallocated costs, including: |
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(i) general and administrative costs; |
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(ii) costs of utility services; |
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(iii) repair and maintenance costs; |
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(iv) sales and marketing expenses; |
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(v) third-party hotel base and incentive |
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management fees; |
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(vi) property taxes; |
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(vii) property and casualty insurance |
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premiums; |
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(viii) accident expenses; and |
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(ix) operating lease expenses; and |
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(C) allocated central costs of third-party hotel |
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managers and franchisors, and property improvement fund |
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contributions. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |