H.B. No. 3684 amends the Texas Tax Code to allow registered securities market operators to exclude certain transaction rebate payments from their total revenue calculations. Specifically, the bill introduces new definitions and provisions under Section 171.1011, which clarify that a taxable entity classified as a registered securities market operator can exclude 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 a framework for understanding the scope of these exclusions.

The bill also updates the definition of "security" in Section 171.0001 to include references to additional subsections of the Tax Code. This legislative change is set to take effect on January 1, 2026, and applies to reports originally due on or after that date. Overall, the bill aims to provide clarity and support for registered securities market operators by allowing them to manage their revenue reporting more effectively in relation to transaction rebate payments.

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