Bill Text: TX HB3702 | 2021-2022 | 87th Legislature | Engrossed


Bill Title: Relating to prohibiting the enactment of a law that imposes a tax on certain transactions that either convey a security or involve specified derivative contracts.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed) 2021-05-05 - Received from the House [HB3702 Detail]

Download: Texas-2021-HB3702-Engrossed.html
 
 
  By: Paddie, Meyer, et al. H.B. No. 3702
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to prohibiting the enactment of a law that imposes a tax on
  certain transactions that either convey a security or involve
  specified derivative contracts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 101, Tax Code, is amended by adding
  Section 101.010 to read as follows:
         Sec. 101.010.  PROVISIONS RELATING TO SECURITIES MARKET
  OPERATORS. (a) After January 1, 2022, no law may be enacted that
  imposes an occupation tax on a registered securities market
  operator or a tax on a securities transaction of a registered
  securities market operator.
         (b)  The term "registered securities market operator" means
  a self-regulatory organization, national securities exchange,
  financial institution, alternative trading system, trade reporting
  facility, broker, dealer, clearing agency, or transfer agent, as
  those terms are defined in the Securities Exchange Act of 1934 (15
  U.S.C. 78a et seq.) or a board of trade, commodities pool operator,
  derivatives clearing organization, electronic trading facility, or
  organized exchange, as that term is defined in the Commodity
  Exchange Act (7 U.S.C. Section 1 et seq.), or an affiliate,
  subsidiary, or facility thereof, to the extent that such regulated
  securities market operator is subject to registration with and
  regulation by the U.S. Securities and Exchange Commission or the
  U.S. Commodities Futures Trading Commission.
         (c)  The term "security" or "securities" means the
  definition of that term set forth in the Securities Exchange Act of
  1934 (15 U.S.C. Section 78c(a)(10)).
         (d)  The term "securities transaction" means the purchase or
  sale of securities by a registered securities market operator on
  behalf of a customer, any contract or agreement to do the same, and
  any service by a registered securities market operator to
  facilitate, match parties to, process, report, clear, or settle the
  purchase or sale of securities on behalf of a customer.
         (e)  This section does not prohibit:
               (1)  the imposition of a general business tax measured
  by business activity;
               (2)  the imposition of a tax on the production of
  minerals;
               (3)  the imposition of a tax on insurance premiums;
               (4)  the imposition of a general sales tax on tangible
  personal property or services;
               (5)  the imposition of a fee based on the cost of
  processing documents; or
               (6)  the change of a rate of a tax in existence on
  January 1, 2022.
         SECTION 2.  This Act takes effect January 1, 2022, but only
  if the constitutional amendment proposed by the 87th Legislature,
  Regular Session, 2021, to authorize the legislature to prohibit the
  enactment of a law that imposes a tax on certain transactions that
  either convey a security or involve specified derivative contracts
  is approved by the voters. If that amendment is not approved by the
  voters, this Act has no effect.
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