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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(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) subcontracting payments made to individuals for |
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services related to the acquisition or management of petroleum |
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interests or the performance of title or contract functions related |
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to the exploration, exploitation, or disposition of petroleum or |
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mineral 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. |