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
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.
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