The bill, S.B. No. 1058, proposes amendments to the Texas Tax Code regarding the franchise tax for taxable entities that are exchanges or members of exchanges. It specifically introduces new provisions that allow these entities to exclude certain payments from their total revenue calculations. The bill defines "transaction rebate payments" as amounts paid to members of an exchange to provide market liquidity, and it clarifies the definitions of "exchange," "member," and "securities transaction" based on federal law.

Key insertions in the bill include the addition of Subsections (y) and (z) to Section 171.1011, which outline the conditions under which transaction rebate payments can be excluded from total revenue. The bill also amends the definition of "security" in Section 171.0001 to include references to additional sections of the Internal Revenue Code. The provisions of this bill will take effect on January 1, 2026, and will apply to reports originally due on or after that date.

Statutes affected:
Introduced: Tax Code 171.1011 (Tax Code 171)