| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the exclusion of certain flow-through funds by |
|
|
qualified courier and logistics companies in determining total |
|
|
revenue for purposes of the franchise tax. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 171.1011, Tax Code, is amended by adding |
|
|
Subsection (g-7) to read as follows: |
|
|
(g-7) A taxable entity that is a qualified courier and |
|
|
logistics company shall exclude from its total revenue, to the |
|
|
extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3), |
|
|
subcontracting payments made by the taxable entity to nonemployee |
|
|
agents for the performance of delivery services on behalf of the |
|
|
taxable entity. For purposes of this subsection, "qualified |
|
|
courier and logistics company" means a taxable entity that: |
|
|
(1) receives at least 80 percent of the taxable |
|
|
entity's annual total revenue from its entire business from a |
|
|
combination of at least two of the following courier and logistics |
|
|
services: |
|
|
(A) expedited same-day delivery of an envelope, |
|
|
package, parcel, roll of architectural drawings, box, or pallet; |
|
|
(B) temporary storage and delivery of the |
|
|
property of another entity, including an envelope, package, parcel, |
|
|
roll of architectural drawings, box, or pallet; and |
|
|
(C) brokerage of same-day or expedited courier |
|
|
and logistics services to be completed by a person or entity under a |
|
|
contract that includes a contractual obligation by the taxable |
|
|
entity to make payments to the person or entity for those services; |
|
|
(2) during all or part of the period on which margin is |
|
|
based, is registered as a motor carrier under Chapter 643, |
|
|
Transportation Code, and if the taxable entity operates on an |
|
|
interstate basis, is registered as a motor carrier or broker under |
|
|
the unified carrier registration system, as defined by Section |
|
|
643.001, Transportation Code, during all or part of that period; |
|
|
(3) maintains an automobile liability insurance |
|
|
policy covering individuals operating vehicles owned, hired, or |
|
|
otherwise used in the taxable entity's business, with a combined |
|
|
single limit for each occurrence of at least $1 million; |
|
|
(4) maintains at least $25,000 of cargo insurance; |
|
|
(5) maintains a permanent nonresidential office from |
|
|
which the courier and logistics services are provided or arranged; |
|
|
(6) has at least five full-time employees during all |
|
|
or part of the period on which margin is based; |
|
|
(7) other than office equipment used in the conduct of |
|
|
the taxable entity's business, does not own in the taxable entity's |
|
|
entire business more than 20 percent of the equipment used to |
|
|
directly provide courier and logistics services, including |
|
|
bicycles, cars, trucks, vans, or tractor trailers; |
|
|
(8) is not doing business as a livery service, floral |
|
|
delivery service, motor coach service, taxicab service, building |
|
|
supply delivery service, water supply service, fuel or energy |
|
|
supply service, restaurant supply service, or commercial moving and |
|
|
storage company; and |
|
|
(9) is not delivering items that the taxable entity or |
|
|
an affiliated entity sold. |
|
|
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, 2012. |