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A BILL TO BE ENTITLED
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AN ACT
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relating to an exclusion from total revenue of certain payments |
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received from an insurance organization that owns a controlling |
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interest in a taxable entity for purposes of computing the |
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franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sec. 171.1011, Tax Code, is amended by adding new |
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Subsection (y) to read as follows: |
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(y) A taxable entity shall exclude from its total revenue, |
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to the extent included under Subsection (c)(1)(A), (c)(2)(A), or |
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(c)(3), payments received from an insurance organization that is |
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exempted from the franchise tax, if the insurance organization owns |
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a controlling interest in the taxable entity. |
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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, 2018. |