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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 taxable |
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entities engaged in the business of transporting aggregates in |
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determining total 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-8) to read as follows: |
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(g-8) A taxable entity that is primarily engaged in the |
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business of transporting aggregates shall exclude from its total |
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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 nonemployee agents for the performance of delivery |
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services on behalf of the taxable entity. In this subsection, |
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"aggregates" means any commonly recognized construction material |
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removed or extracted from the earth, including dimension stone, |
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crushed and broken limestone, crushed and broken granite, other |
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crushed and broken stone, construction sand and gravel, industrial |
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sand, dirt, soil, cementitious material, and caliche. |
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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. |