H.B. No. 3684 proposes amendments to the Texas Tax Code regarding the treatment of certain payments made by registered securities market operators. Specifically, the bill introduces new provisions that allow these entities to exclude transaction rebate payments made to brokers or dealers from their total revenue. This exclusion is intended to incentivize liquidity in the market and is defined within the bill, along with key terms such as "broker," "dealer," "registered securities market operator," "securities transaction," and "transaction rebate payment."

The bill also updates the definition of "security" to align with federal tax code references and adds new subsections to clarify the exclusions applicable to registered securities market operators. The changes will take effect on January 1, 2026, and will apply to reports due on or after that date. Overall, the legislation aims to provide a more favorable tax treatment for registered securities market operators, thereby potentially enhancing market liquidity.

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