Bill Text: TX HB1358 | 2011-2012 | 82nd Legislature | Comm Sub
Bill Title: Relating to the exclusion of certain flow-through funds by qualified courier and logistics companies in determining total revenue for purposes of the franchise tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-05-09 - Committee report sent to Calendars [HB1358 Detail]
Download: Texas-2011-HB1358-Comm_Sub.html
| 82R21754 KLA-F | |||
| By: Howard of Fort Bend | H.B. No. 1358 | ||
| Substitute the following for H.B. No. 1358: | |||
| By: Otto | C.S.H.B. No. 1358 | ||
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| relating to the exclusion of certain flow-through funds by | ||
| qualified courier and logistics companies 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-7) to read as follows: | ||
| (g-7) A taxable entity that is a qualified courier and | ||
| logistics company 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 delivery services on behalf of the | ||
| taxable entity. For purposes of this subsection, "qualified | ||
| courier and logistics company" means a taxable entity that: | ||
| (1) receives at least 80 percent of the taxable | ||
| entity's annual total revenue from its entire business from a | ||
| combination of at least two of the following courier and logistics | ||
| services: | ||
| (A) expedited same-day delivery of an envelope, | ||
| package, parcel, roll of architectural drawings, box, or pallet; | ||
| (B) temporary storage and delivery of the | ||
| property of another entity, including an envelope, package, parcel, | ||
| roll of architectural drawings, box, or pallet; and | ||
| (C) brokerage of same-day or expedited courier | ||
| and logistics services to be completed by a person or entity under a | ||
| contract that includes a contractual obligation by the taxable | ||
| entity to make payments to the person or entity for those services; | ||
| (2) during the period on which margin is based, is | ||
| registered as a motor carrier under Chapter 643, Transportation | ||
| Code, and if the taxable entity operates on an interstate basis, is | ||
| registered as a motor carrier or broker under the unified carrier | ||
| registration system, as defined by Section 643.001, Transportation | ||
| Code, during that period; | ||
| (3) maintains an automobile liability insurance | ||
| policy covering individuals operating vehicles owned, hired, or | ||
| otherwise used in the taxable entity's business, with a combined | ||
| single limit for each occurrence of at least $1 million; | ||
| (4) maintains at least $25,000 of cargo insurance; | ||
| (5) maintains a permanent nonresidential office from | ||
| which the courier and logistics services are provided or arranged; | ||
| (6) has at least five full-time employees during the | ||
| period on which margin is based; | ||
| (7) is not doing business as a livery service, floral | ||
| delivery service, motor coach service, taxicab service, building | ||
| supply delivery service, water supply service, fuel or energy | ||
| supply service, restaurant supply service, commercial moving and | ||
| storage company, or overnight delivery service; and | ||
| (8) is not delivering items that the taxable entity or | ||
| an affiliated entity sold. | ||
| 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, 2012. | ||
