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 framework for understanding the scope of these exclusions.

The bill's amendments include the addition of subsections (y) and (z) to Section 171.1011, which detail the criteria for what constitutes a registered securities market operator and the nature of transaction rebate payments. The effective date for these changes is set for January 1, 2026, and the provisions apply only to reports originally due on or after this date. This legislative change aims to support the operations of registered securities market operators by reducing their taxable revenue related to specific transaction incentives.

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