|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to a franchise tax exclusion for contractual flow-through |
|
funds paid to certain performing artists. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 171.1011(g), Tax Code, is amended to |
|
read as follows: |
|
(g) A taxable entity shall exclude from its total revenue, |
|
to the extent included under Subsection (c)(1)(A), (c)(2)(A), or |
|
(c)(3), only the following flow-through funds that are mandated by |
|
contract to be distributed to other entities: |
|
(1) sales commissions to nonemployees, including |
|
split-fee real estate commissions; |
|
(2) the tax basis as determined under the Internal |
|
Revenue Code of securities underwritten; [and] |
|
(3) subcontracting payments handled by the taxable |
|
entity to provide services, labor, or materials in connection with |
|
the actual or proposed design, construction, remodeling, or repair |
|
of improvements on real property or the location of the boundaries |
|
of real property; and |
|
(4) payments made to a performing artist, |
|
entertainment act, touring show, or exhibition under a contract to |
|
perform at a ticketed event in this state in which the contract |
|
provides that the artist, act, show, or exhibition will receive a |
|
guaranteed dollar amount or a percentage of the revenue from ticket |
|
sales. |
|
SECTION 2. This Act applies only to a report originally due |
|
on or after the effective date of this Act. |
|
SECTION 3. This Act takes effect January 1, 2010. |