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, allowing these entities to exclude "transaction rebate payments" made to brokers or dealers as part of securities transactions. The bill defines key terms such as "broker," "dealer," "registered securities market operator," "securities transaction," and "transaction rebate payment," providing clarity on the scope of the exclusions.

The bill also updates the definition of "security" in Section 171.0001 to include additional references to specific sections of the Internal Revenue Code. This legislative change is set to take effect on January 1, 2026, and applies only to reports originally due on or after that date. 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 registered 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)