83R6785 BEF-F
 
  By: Hinojosa S.B. No. 1447
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exclusion of certain flow-through funds by taxable
  entities engaged in the business of transporting barite 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-10) to read as follows:
         (g-10)  A taxable entity that is primarily engaged in the
  business of transporting barite 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 transportation
  services on behalf of the taxable entity. For purposes of this
  subsection, "barite" means barium sulfate (BaSO4), a mineral used
  as a weighing agent in oil and gas exploration.
         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, 2014.