S.B. No. 1058 proposes amendments to the Texas Tax Code regarding the treatment of certain payments made by registered securities market operators. Specifically, the bill introduces new definitions and provisions that allow these entities to exclude transaction rebate payments made to brokers or dealers from their total revenue calculations. This exclusion is intended to incentivize market liquidity by clarifying that such payments, which are defined as amounts paid to encourage brokers or dealers to facilitate securities transactions, do not count towards taxable revenue.

The bill also updates the definition of "security" to align with federal tax law and introduces specific definitions for terms such as "broker," "dealer," and "registered securities market operator." These definitions are based on existing federal statutes and industry classifications. The changes 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)
Senate Committee Report: Tax Code 171.1011 (Tax Code 171)