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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 payments related |
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to petroleum and mineral interests in determining total revenue for |
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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-11) to read as follows: |
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(g-11) A taxable entity that is primarily engaged in the |
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business of performing landman services shall exclude from its |
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total revenue, to the extent included under Subsection (c)(1)(A), |
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(c)(2)(A), or (c)(3), subcontracting payments made by the taxable |
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entity to nonemployees for the performance of landman services on |
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behalf of the taxable entity. In this subsection, "landman |
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services" means: |
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(1) performing title searches for the purpose of |
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determining ownership of or curing title defects related to oil, |
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gas, or other related mineral or petroleum interests; |
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(2) negotiating the acquisition or divestiture of |
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mineral rights for the purpose of the exploration, development, or |
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production of oil, gas, or other related mineral or petroleum |
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interests; or |
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(3) negotiating or managing the negotiation of |
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contracts or other agreements related to the ownership of mineral |
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interests for the exploration, exploitation, disposition, |
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development, or production of oil, gas, or other related mineral or |
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petroleum interests. |
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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, 2014. |