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 also defines key terms such as "broker," "dealer," "registered securities market operator," "securities transaction," and "transaction rebate payment," providing a clearer framework for understanding these financial interactions.

The bill's provisions will take effect on January 1, 2026, and will apply to reports originally due on or after that date. This legislative change aims to support the operations of registered securities market operators by reducing their taxable revenue, thereby potentially encouraging more liquidity in the market. The amendments to the Tax Code are designed to align with federal definitions and regulations, ensuring consistency in the treatment of securities transactions at both state and federal levels.

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