S.B. No. 1058 amends the Texas Tax Code to exclude certain payments related to securities transactions from the total revenue of taxable entities that are registered securities market operators. Specifically, the bill introduces new definitions and provisions under Section 171.1011, including the terms "transaction rebate payment," which refers to amounts paid to brokers or dealers to incentivize market liquidity, and "registered securities market operator," which is defined as an entity engaged in specific activities and subject to regulation by the U.S. Securities and Exchange Commission or the Commodity Futures Trading Commission.

The bill also clarifies the definitions of "broker" and "dealer" as per federal law, and it specifies that a "securities transaction" involves the purchase or sale of a security by these entities. The changes will apply to reports due on or after the effective date of January 1, 2026. The bill passed both the Senate and the House with significant support, indicating a strong legislative consensus on the need for these adjustments in the tax treatment of securities market operators.

Statutes affected:
Introduced: Tax Code 171.1011 (Tax Code 171)
Senate Committee Report: Tax Code 171.1011 (Tax Code 171)
Engrossed: Tax Code 171.1011 (Tax Code 171)
House Committee Report: Tax Code 171.1011 (Tax Code 171)
Enrolled: Tax Code 171.1011 (Tax Code 171)