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A BILL TO BE ENTITLED
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AN ACT
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relating to the application of the franchise tax to and computation |
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of franchise tax owed by certain entities that hold precious |
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metals. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended |
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by adding Section 171.0021 to read as follows: |
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Sec. 171.0021. CERTAIN ENTITIES NOT ENGAGED IN BUSINESS IN |
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THIS STATE. (a) In this section: |
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(1) "Bullion" has the meaning assigned by Section |
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2116.001, Government Code. |
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(2) "Bullion holder" means a person who holds, stores, |
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purchases, sells, trades, or manages the ownership of platinum, |
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gold, or silver bullion, including gold, silver, or numismatic |
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coins, at the depository. |
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(3) "Depository" means the Texas Bullion Depository |
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created under Chapter 2116, Government Code. |
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(b) A taxable entity whose only activity in this state is as |
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a bullion holder is not considered to be doing business in this |
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state for purposes of Section 171.001 and is not required to file a |
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report under Subchapter E. |
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SECTION 2. Section 171.1011, Tax Code, is amended by adding |
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Subsection (g-13) to read as follows: |
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(g-13) A taxable entity that is a bullion holder shall |
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exclude from its total revenue, to the extent included under |
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Subsection (c)(1)(A), (c)(2)(A), or (c)(3), all gains or losses |
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attributable to the purchase or the sale, trade, barter, gift, |
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donation, or other disposal of platinum, gold, or silver bullion, |
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including gold, silver, or numismatic coins. For purposes of this |
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subsection, "bullion" and "bullion holder" have the meanings |
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assigned by Section 171.0021. |
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SECTION 3. 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 4. This Act takes effect January 1, 2020. |