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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 flow-through funds by |
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qualified courier and logistics companies in determining total |
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revenue 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-7) to read as follows: |
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(g-7) A taxable entity that is a qualified courier and |
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logistics company shall exclude from its total revenue, to the |
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extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3), |
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subcontracting payments made by the taxable entity to nonemployee |
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agents for the performance of delivery services on behalf of the |
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taxable entity. For purposes of this subsection, "qualified |
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courier and logistics company" means a taxable entity that: |
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(1) receives at least 80 percent of the taxable |
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entity's annual total revenue from its entire business from a |
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combination of at least two of the following courier and logistics |
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services: |
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(A) expedited same-day delivery of an envelope, |
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package, parcel, roll of architectural drawings, box, or pallet; |
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(B) temporary storage and delivery of the |
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property of another entity, including an envelope, package, parcel, |
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roll of architectural drawings, box, or pallet; and |
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(C) brokerage of same-day or expedited courier |
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and logistics services to be completed by a person or entity under a |
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contract that includes a contractual obligation by the taxable |
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entity to make payments to the person or entity for those services; |
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(2) during the period on which margin is based, is |
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registered as a motor carrier under Chapter 643, Transportation |
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Code, and if the taxable entity operates on an interstate basis, is |
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registered as a motor carrier or broker under the unified carrier |
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registration system, as defined by Section 643.001, Transportation |
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Code, during that period; |
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(3) maintains an automobile liability insurance |
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policy covering individuals operating vehicles owned, hired, or |
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otherwise used in the taxable entity's business, with a combined |
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single limit for each occurrence of at least $1 million; |
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(4) maintains at least $25,000 of cargo insurance; |
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(5) maintains a permanent nonresidential office from |
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which the courier and logistics services are provided or arranged; |
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(6) has at least five full-time employees during the |
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period on which margin is based; |
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(7) is not doing business as a livery service, floral |
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delivery service, motor coach service, taxicab service, building |
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supply delivery service, water supply service, fuel or energy |
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supply service, restaurant supply service, commercial moving and |
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storage company, or overnight delivery service; and |
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(8) is not delivering items that the taxable entity or |
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an affiliated entity sold. |
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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, 2012. |