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A BILL TO BE ENTITLED
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AN ACT
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relating to the definition of "passive entity" for the franchise |
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tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.0003(b), Tax Code, is amended to |
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read as follows: |
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(b) The income described by Subsection (a)(2) does not |
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include: |
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(1) rent; [or] |
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(2) income received by a nonoperator from mineral |
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properties under a joint operating agreement if the nonoperator is |
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a member of an affiliated group and another member of that group is |
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the operator under the same joint operating agreement; or |
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(3) interest income by a person in the business of |
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making loans to the general public. |
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SECTION 2. This Act is a clarification of existing law and |
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does not imply that existing law may be construed as inconsistent |
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with the law as amended by this Act. |
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SECTION 3. This Act takes effect September 1, 2017. |