HB 1596

83(R) - 2013

Vote Recommendation

  • Neutral
  • Positive
  • Neutral
  • Positive
  • Neutral


Naomi Gonzalez

Bill Caption

Relating to the exclusion of certain flow-through funds by taxable entities engaged in the business of transporting barite in determining total revenue for purposes of the franchise tax.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

Summary: HB 1596 would allow entities engaged in the transportation of barite, an input in oil and gas field operations, to exclude from their revenue subcontracting payments made to non-employee agents that conduct transportation services on their behalf. This would reduce the franchise tax liabilities of such barite transportation entities that subcontract transportation services.

Analysis: HB 1596 would limit the franchise tax’s burden on entities transporting barite, meaning HB 1596 will limit government by limiting the amount of revenue it can take from these entities. HB 1596 also promotes the property rights of barite transportation entities by allowing them to retain more resources. We support HB 1596.