Bill Text: TX HB3702 | 2021-2022 | 87th Legislature | Comm Sub
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 4-0)
Status: (Engrossed - Dead) 2021-05-24 - Placed on intent calendar [HB3702 Detail]
Download: Texas-2021-HB3702-Comm_Sub.html
By: Paddie, Meyer, Tinderholt | H.B. No. 3702 | |
(Senate Sponsor - Springer) | ||
(In the Senate - Received from the House May 5, 2021; | ||
May 13, 2021, read first time and referred to Committee on Finance; | ||
May 21, 2021, reported favorably by the following vote: Yeas 12, | ||
Nays 0; May 21, 2021, sent to printer.) | ||
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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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