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A BILL TO BE ENTITLED
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AN ACT
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relating to the payment of franchise taxes by taxable entity that |
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employs or contracts with a professional athlete. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1012, Tax Code, is amended by adding |
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Subsection (u) to read as follows: |
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(u) Notwithstanding any other provision of this section, a |
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taxable entity that employs or contracts with a professional |
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athlete and that elects to subtract costs of goods sold may not |
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include the cost to employ the professional athlete as labor costs |
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when calculating the entity's costs of goods sold to the extent the |
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amount paid to the athlete exceeds the limit on wage and cash |
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compensation under Section 171.1013(c) as applied to the athlete. |
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In this subsection, "professional athlete" has the meaning assigned |
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by Section 406.095, Labor Code. |
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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 September 1, 2021. |