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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 commercial lease revenue in |
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determining a taxable entity's total revenue for purposes of the |
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revised 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(g), Tax Code, is amended to |
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read as follows: |
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(g) A taxable entity 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), only the following flow-through funds that are mandated by |
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contract to be distributed to other entities: |
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(1) sales commissions to nonemployees, including |
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split-fee real estate commissions; |
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(2) the tax basis as determined under the Internal |
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Revenue Code of securities underwritten; [and] |
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(3) subcontracting payments handled by the taxable |
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entity to provide services, labor, or materials in connection with |
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the actual or proposed design, construction, remodeling, or repair |
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of improvements on real property or the location of the boundaries |
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of real property; and |
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(4) payments received by a landlord of commercial real |
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property from a tenant of the property to reimburse the landlord for |
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ad valorem taxes, franchise taxes, any tax or excise imposed on |
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rents, general or special assessments or other taxes, operating |
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expenses, including property and other insurance expenses, |
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utilities, maintenance expenses, management expenses, and similar |
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amounts generally expended for commercial real property. |
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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. |