34 Tex. Admin. Code § 3.587 - Margin: Total Revenue
(a) Effective date.
The provisions of this section apply to franchise tax reports originally due on
or after January 1, 2008, except as otherwise noted.
(b) Definitions. The following words and
terms, when used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1)
Actual cost of uncompensated care--The amount determined by multiplying
Operating Expenses by the Uncompensated Care Ratio where:
(A) operating expenses are the amounts
reported on line 2 and line 21, Internal Revenue Service Form 1065 or the
amounts reported on line 2 and line 20, Internal Revenue Service Form 1120S or
the corresponding line items from any other federal form filed, less any items
that have already been subtracted from total revenue (e.g., bad
debts);
(B) uncompensated care
ratio means uncompensated care charges less partial payments divided by total
charges;
(C) uncompensated care
charges are the standard charges for health care services where the provider
has not received any payment or where the provider has received partial payment
that does not cover the cost of the health care provided to the patient.
Uncompensated care charges do not include any portion of a charge that the
health care provider has no right to collect under a private health care plan,
under an agreement with an individual for a specific amount or under the charge
limitations imposed by the programs described in subsection (e)(10)(A)(i) -
(iii) of this section;
(D) standard
charges must be comparable to the charges applied to services provided to all
patients of the health care provider;
(E) partial payment is an amount that has
been received toward uncompensated care charges that does not cover the cost of
the services provided;
(F) total
charges are charges for all health care services, including uncompensated
care;
(G) records that clearly
identify each patient, the procedure performed, and the standard charge for
such a service, as well as payments received from each patient must be
maintained by the health care provider for all uncompensated care;
(H) a corresponding adjustment must be made
to reduce the cost of goods sold deduction or the compensation deduction for
the portion of the cost of goods sold or compensation that has been excluded
from revenue:
(i) the cost of goods sold
deduction is reduced by subtracting the product of the cost of goods sold under
§
3.588 of this title (relating to
Margin: Cost of Goods Sold) multiplied by the uncompensated care
ratio;
(ii) the compensation
deduction is reduced by subtracting the product of the compensation and
benefits amounts under §
3.589 of this title (relating to
Margin: Compensation) multiplied by the uncompensated care ratio.
(2) Federal
obligations--
(A) stocks and other direct
obligations of, and obligations unconditionally guaranteed by, the United
States government and United States government agencies; and
(B) direct obligations of a United States
government-sponsored agency.
(3) Health care institution--An ambulatory
surgical center; an assisted living facility licensed under Health and Safety
Code, Chapter 247; an emergency medical services provider; a home and community
support services agency; a hospice; a hospital; a hospital system; an
intermediate care facility for the mentally retarded or a home and
community-based services waiver program for persons with mental retardation
adopted in accordance with the federal Social Security Act, §1915(c)
(42 U.S.C.
§1396n); a birthing center; a nursing
home; an end stage renal disease facility licensed under Health and Safety
Code, § 251.011; or a pharmacy.
(4) Health care provider--Any taxable entity
that participates in the Medicaid program, Medicare program, Children's Health
Insurance Program (CHIP), state workers' compensation program, or TRICARE
military health system as a provider of health care services.
(5) Lending institution--An entity that makes
loans; and
(A) is regulated by the Federal
Reserve Board, the Office of the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, the Commodity Futures Trading Commission, the
Office of Thrift Supervision, the Texas Department of Banking, the Office of
Consumer Credit Commissioner, the Credit Union Department, or any comparable
regulatory body;
(B) is licensed
by, registered with, or otherwise regulated by the Department of Savings and
Mortgage Lending;
(C) is a "broker"
or "dealer" as defined by the Securities Exchange Act of 1934 at
15 U.S.C.
§78c; or
(D) provides financing to unrelated parties
solely for agricultural production.
(6) Management company--A corporation,
limited liability company, or other limited liability entity that conducts all
or part of the active trade or business of another entity ("the managed
entity") in exchange for a management fee and reimbursement of specified costs
incurred in the conduct of the active trade or business of the managed entity,
including wages and cash compensation as determined under Tax Code, §
171.1013(a) and
(b). To qualify as a management company:
(A) the entity must perform active and
substantial management and operational functions, control and direct the daily
operations and provide services such as accounting, general administration,
legal, financial or similar services; or
(B) if the entity does not conduct all of the
active trade or business of an entity, the entity must conduct all operations,
as provided in subparagraph (A) of this paragraph, for a distinct
revenue-producing component of the entity.
(7) Net distributive income--The net amount
of income, gain, deduction, or loss relating to a pass-through entity or
disregarded entity reportable to the owners for the tax year of the
entity.
(8) Obligation--Any bond,
debenture, security, mortgage-backed security, pass-through certificate, or
other evidence of indebtedness of the issuing entity. The term does not include
a deposit, a repurchase agreement, a loan, a lease, a participation in a loan
or pool of loans, a loan collateralized by an obligation of a United States
government agency, or a loan guaranteed by a United States government
agency.
(9) Pro bono services--The
direct provision of legal services to the poor, without an expectation of
compensation.
(10)
Product--Services, tangible personal property, and intangible
property.
(11) Sales commission--
(A) any form of compensation paid to a person
for engaging in an act for which a license is required by Occupations Code,
Chapter 1101; or
(B) compensation
paid to a sales representative by a principal in an amount that is based on the
amount or level of certain orders for or sales of the principal's product and
that the principal is required to report on Internal Revenue Service Form
1099-MISC (or would have been reported if the amount had met the Internal
Revenue Service minimum reporting requirement).
(C) for purposes of defining sales
commission, a principal is a person who:
(i)
manufactures, produces, imports, distributes, or acts as an independent agent
for the distribution of a product for sale;
(ii) uses a sales representative to solicit
orders for the product; and
(iii)
compensates the sales representative wholly or partly by sales
commission.
(12) Security--The meaning assigned by
Internal Revenue Code, §475(c)(2), and includes instruments described by
Internal Revenue Code, §475(e)(2)(B), (C), and (D).
(13) Staff leasing services company--A
business entity that offers staff leasing services, as that term is defined by
Labor Code, §
91.001, or a temporary
employment service, as that term is defined by Labor Code, §
93.001.
(14) Tiered partnership arrangement--An
ownership structure in which any of the interests in one taxable entity treated
as a partnership or an S corporation for federal income tax purposes (a "lower
tier entity") are owned by one or more other taxable entities (an "upper tier
entity").
(15) United States
government--Any department or ministry of the federal government, including a
federal reserve bank. The term does not include a state or local government, a
commercial enterprise owned wholly or partly by the United States government,
or a local governmental entity or commercial enterprise whose obligations are
guaranteed by the United States government.
(16) United States government agency--An
instrumentality of the United States government whose obligations are fully and
explicitly guaranteed as to the timely payment of principal and interest by the
full faith and credit of the United States government. The term includes the
Government National Mortgage Association, the Department of Veterans Affairs,
the Federal Housing Administration, the Farmers Home Administration, the
Export-Import Bank, the Overseas Private Investment Corporation, the Commodity
Credit Corporation, the Small Business Administration, and any successor
agency.
(17) United States
government-sponsored agency--An agency originally established or chartered by
the United States government to serve public purposes specified by the United
States Congress but whose obligations are not explicitly guaranteed by the full
faith and credit of the United States government. The term includes the Federal
Home Loan Mortgage Corporation, the Federal National Mortgage Association, the
Farm Credit System, the Federal Home Loan Bank System, the Student Loan
Marketing Association, and any successor agency.
(c) General rules for reporting total
revenue.
(1) Variant of form. Any reference
to an Internal Revenue Service form includes a variant of the form. For
example, a reference to Form 1120 includes Forms 1120-A, 1120-S, and other
variants of Form 1120. A reference to an Internal Revenue Service form also
includes any subsequent form with a different number or designation that
substantially provides the same information as the original form.
(2) Amount reportable. Any reference to an
amount reportable as income on a line number on an Internal Revenue Service
form is the amount entered to the extent the amount entered complies with
federal income tax law and includes the corresponding amount entered on a
variant of the form, or a subsequent form, with a different line number to the
extent the amount entered complies with federal income tax law.
(3) Federal consolidated group. A taxable
entity that is part of a federal consolidated group or is a disregarded entity
shall compute its total revenue as if it had filed a separate return for
federal income tax purposes; provided, however, that a disregarded entity may
combine its revenue, cost of goods sold, compensation and gross revenue with
its parent as provided by §
3.590(d)(6) of
this title (relating to Margin: Combined Reporting). Further information on
combined entities can be found in §
3.590 of this title.
(4) Passive entity. A taxable entity will
include its share of net distributive income from a passive entity, but only to
the extent the net income of the passive entity was not generated by any other
taxable entity.
(5) Exclusions from
total revenue.
(A) Any expense excluded from
total revenue (e.g. flow-through funds or the cost of uncompensated care
allowed under subsection (e) of this section) may not be included in the
determination of cost of goods sold (see §
3.588 of this title) or the
determination of compensation (see §
3.589 of this title).
(B) Net distributive income that is
subtracted from total revenue may not be included in the determination of
compensation.
(6)
Contract services. Except as provided by subsection (e)(2) of this section, a
payment received under an ordinary contract for the provision of services in
the ordinary course of business may not be excluded from the calculation of
total revenue.
(7) Payment to
affiliated group members. If the taxable entity belongs to an affiliated group,
the taxable entity may not exclude from the calculation of total revenue any
payments described by subsection (e)(1) - (6) of this section that are made to
entities that are members of the affiliated group.
(8) Tiered partnership provision. This
provision is not mandatory. Subject to the following subparagraphs, a lower
tier entity in a tiered partnership arrangement may exclude from total revenue
the amount of total revenue reported to an upper tier entity. If a lower tier
entity chooses to file under the tiered partnership provision, the lower tier
entity may report total revenue to any or all of its upper tier entities. The
total revenue reported to an upper tier entity must equal the upper tier
entity's ownership percentage of the lower tier entity's entire total revenue.
(A) Reporting requirements. The lower tier
entity must submit a report to the comptroller showing the amount of total
revenue that each upper tier entity must include with the upper tier entity's
own total revenue. Each upper tier entity must submit a report to the
comptroller showing the amount of the lower tier entity's total revenue that
was passed to the upper tier entity and is included in the total revenue of the
upper tier entity.
(B) Nontaxable
upper tier entity. This paragraph does not apply to that percentage of the
total revenue attributable to an upper tier entity by a lower tier entity if
the upper tier entity is not subject to the tax under this chapter. In this
case, the lower tier entity cannot report total revenue to the nontaxable upper
tier entity and the lower tier entity cannot exclude this total revenue from
its franchise tax report.
(C)
Eligibility for no tax due, discounts and the E-Z Computation. The no tax due
thresholds, discounts and the E-Z Computation do not apply to an upper or lower
tier entity if, before the attribution of any total revenue by a lower tier
entity to upper tier entities under this section, the lower tier entity does
not meet the criteria. See §
3.584(d)(8) of
this title (relating to Margin: Reports and Payments).
(D) Not a partnership distribution. Total
revenue reported from a lower tier entity to an upper tier entity under the
provisions of Tax Code, §
171.1015(b)
is not a distribution from a partnership.
(E) Combined reporting. The tiered
partnership provision is not an alternative to combined reporting. Combined
reporting is mandatory for taxable entities that meet the ownership and unitary
criteria. See §
3.590 of this title. Therefore,
the tiered partnership provision is not allowed if the lower tier entity is
included in a combined group.
(F)
Accounting period. If the lower tier entity and an upper tier entity have
different accounting periods, the upper tier entity must allocate the revenue
reported from the lower tier entity to the accounting period that the upper
tier entity's report is based on.
(G) Lower tier entity no tax due. For reports
originally due on or after January 1, 2010, if the lower tier entity owes no
tax before the attribution of total revenue to the upper tier entities, filing
under the tiered partnership provision is not allowed.
(9) Allocated revenue. Revenue that Texas
cannot tax because the activities generating that item of revenue do not have
sufficient unitary connection with the entity's other activities conducted in
Texas under the United States Constitution is not included in total
revenue.
(d) Reporting
total revenue. The line items in this subsection refer to line items on the
2006 Internal Revenue Service forms. In computing total revenue for a
subsequent report year, total revenue should be based on the equivalent line
numbers from the corresponding federal report and computed based on the
Internal Revenue Code of 1986 in effect for the federal tax year beginning on
January 1, 2007.
(1) Corporations. For the
purpose of computing its taxable margin, the total revenue of a taxable entity
treated as a corporation for federal income tax purposes is computed by:
(A) adding:
(i) the amount reportable as income on line
1c, Internal Revenue Service Form 1120;
(ii) the amounts reportable as income on
lines 4 through 10, Internal Revenue Service Form 1120; and
(iii) any total revenue reported by a lower
tier entity as includable in the taxable entity's total revenue under Tax Code,
§
171.1015(b);
and
(B) subtracting, to
the extent included in the calculation under subparagraph (A) of this
paragraph:
(i) bad debt expensed for federal
income tax purposes that corresponds to items of gross receipts included for
the current reporting period or a past reporting period;
(ii) foreign royalties and foreign dividends,
including amounts determined under Internal Revenue Code, §78 or
§§951 - 964;
(iii) net
distributive income from a taxable entity treated as a partnership or as an S
corporation for federal income tax purposes, except as provided by subsection
(c)(4) of this section;
(iv)
allowable deductions from Internal Revenue Service Form 1120, Schedule C, to
the extent the relating dividend income is included in total revenue;
(v) items of income attributable to an entity
that is a disregarded entity for federal income tax purposes; and
(vi) other amounts authorized by subsection
(e) of this section.
(2) S corporations. For the purpose of
computing its taxable margin, the total revenue of a taxable entity treated as
an S corporation for federal income tax purposes is computed by:
(A) adding:
(i) the amount reportable as income on line
1c, Internal Revenue Service Form 1120S;
(ii) the amounts reportable as income on
lines 4 and 5, Internal Revenue Service Form 1120S;
(iii) the amounts reportable as income on
lines 3a and 4 through 10, Internal Revenue Service Form 1120S, Schedule
K;
(iv) the amounts reportable as
income on lines 17 and 19, Internal Revenue Service Form 8825; and
(v) any total revenue reported by a lower
tier entity as includable in the taxable entity's total revenue under Tax Code,
§
171.1015(b);
and
(B) subtracting, to
the extent included in the calculation under subparagraph (A) of this
paragraph:
(i) bad debt expensed for federal
income tax purposes that corresponds to items of gross receipts included for
the current reporting period or a past reporting period;
(ii) foreign royalties and foreign dividends,
including amounts determined under Internal Revenue Code, §78 or
§§951 - 964;
(iii) net
distributive income from a taxable entity treated as a partnership or as an S
corporation for federal income tax purposes, except as provided by subsection
(c)(4) of this section;
(iv) items
of income attributable to an entity that is a disregarded entity for federal
income tax purposes; and
(v) other
amounts authorized by subsection (e) of this section.
(3) Partnerships. For the purpose
of computing its taxable margin, the total revenue of a taxable entity treated
as a partnership for federal income tax purposes is computed by:
(A) adding:
(i) the amount reportable as income on line
1c, Internal Revenue Service Form 1065;
(ii) the amounts reportable as income on
lines 4, 6, and 7, Internal Revenue Service Form 1065;
(iii) the amounts reportable as income on
lines 3a and 5 through 11, Internal Revenue Service Form 1065, Schedule
K;
(iv) the amounts reportable as
income on line 17, Internal Revenue Service Form 8825;
(v) the amounts reportable as income on line
11, plus line 2 or line 45, Internal Revenue Service Form 1040, Schedule F;
and
(vi) any total revenue reported
by a lower tier entity as includable in the taxable entity's total revenue
under Tax Code, §
171.1015(b);
and
(B) subtracting, to
the extent included in the calculation under subparagraph (A) of this
paragraph:
(i) bad debt expensed for federal
income tax purposes that corresponds to items of gross receipts included for
the current reporting period or a past reporting period;
(ii) foreign royalties and foreign dividends,
including amounts determined under Internal Revenue Code, §78 or
§§951 - 964;
(iii) net
distributive income from a taxable entity treated as a partnership or as an S
corporation for federal income tax purposes, except as provided by subsection
(c)(4) of this section;
(iv) items
of income attributable to an entity that is a disregarded entity for federal
income tax purposes; and
(v) other
amounts authorized by subsection (e) of this section.
(4) Trusts. For the purpose of
computing its taxable margin, the total revenue of a taxable entity treated as
a trust for federal income tax purposes is computed by:
(A) adding:
(i) the amount reportable as income on lines
1, 2a, 3, 4, 7, and 8 of Internal Revenue Service Form 1041;
(ii) the amount reportable as income on lines
3, 4, 32, and 37 of Internal Revenue Service Form 1040, Schedule E;
(iii) the amounts reportable as income on
line 11, plus line 2 or line 45, Internal Revenue Service Form 1040, Schedule
F; and
(iv) any total revenue
reported by a lower tier entity as includable in the taxable entity's total
revenue under Tax Code, §
171.1015(b);
and
(B) subtracting, to
the extent included in the calculation under subparagraph (A) of this
paragraph:
(i) bad debt expensed for federal
income tax purposes that corresponds to items of gross receipts included for
the current reporting period or a past reporting period;
(ii) foreign royalties and foreign dividends,
including amounts determined under Internal Revenue Code, §78 or
§§951 - 964;
(iii) net
distributive income from a taxable entity treated as a partnership or as an S
corporation for federal income tax purposes, except as provided by subsection
(c)(4) of this section;
(iv) items
of income attributable to an entity that is a disregarded entity for federal
income tax purposes; and
(v) other
amounts authorized by subsection (e) of this section.
(5) Single member limited
liability company (LLC) filing as a sole proprietorship. For the purpose of
computing its taxable margin, the total revenue of a taxable entity registered
as a single member limited liability company and filing as a sole
proprietorship for federal income tax purposes is computed by:
(A) adding:
(i) the amount reportable as income on line 3
of Internal Revenue Service, Form 1040, Schedule C;
(ii) the amount reportable as income on line
17, Internal Revenue Service Form 4797, to the extent that it relates to the
LLC;
(iii) ordinary income or loss
from partnerships, S corporations, estates and trusts, Internal Revenue Service
Form 1040, Schedule E, to the extent that it relates to the LLC;
(iv) the amount reportable as income on line
16 of Internal Revenue Service Form 1040, Schedule D, to the extent that it
relates to the LLC;
(v) the amounts
reportable as income on lines 3 and 4, Internal Revenue Service Form 1040,
Schedule E, to the extent that it relates to the LLC;
(vi) the amounts reportable as income on line
11, plus line 2 or line 45, Internal Revenue Service Form 1040, Schedule F, to
the extent that it relates to the LLC;
(vii) the amount reportable as income on line
6 of Internal Revenue Service Form 1040, Schedule C, that has not already been
included in this subparagraph; and
(viii) any total revenue reported by a lower
tier entity as includable in the taxable entity's total revenue under Tax Code,
§
171.1015(b);
and
(B) subtracting, to
the extent included in the calculation under subparagraph (A) of this
paragraph:
(i) bad debt expensed for federal
income tax purposes that corresponds to items of gross receipts included for
the current reporting period or a past reporting period;
(ii) foreign royalties and foreign dividends,
including amounts determined under Internal Revenue Code, §78 or
§§951 - 964;
(iii) net
distributive income from a taxable entity treated as a partnership or as an S
corporation for federal income tax purposes, except as provided by subsection
(c)(4) of this section;
(iv) items
of income attributable to an entity that is a disregarded entity for federal
income tax purposes; and
(v) other
amounts authorized by subsection (e) of this section.
(6) Other taxable entities. For a
taxable entity other than a taxable entity treated for federal income tax
purposes as a corporation, S corporation, partnership, trust, or single member
limited liability company filing as a sole proprietorship, the total revenue
will be an amount determined in a manner substantially equivalent to the amount
calculated for the entities listed in this subsection.
(e) Exclusions from total revenue. Except as
otherwise provided in this section and only to the extent included in the
calculation of total revenue under subsection (d)(1) - (6) of this section, the
following items shall be excluded from total revenue:
(1) Flow-through funds mandated by law or
fiduciary duty. Flow-through funds that are mandated by law or fiduciary duty
to be distributed to other entities or persons, including taxes collected from
a third party by the taxable entity and remitted by the taxable entity to a
taxing authority;
(A) Allowed exclusions
include, but are not limited to, taxes imposed by law on a third party but
collected by the taxable entity and remitted by it to a taxing authority.
Examples include, but are not limited to, state sales tax and the Texas hotel
occupancy tax.
(B) For excise
taxes, only those entities that collect and remit the tax to the taxing
authority may exclude the tax from total revenue. Excise taxes include, but are
not limited to, motor fuels taxes and tobacco taxes.
(C) Taxes imposed by law on the taxable
entity itself are not allowed as flow-through funds and cannot be excluded from
total revenue. Examples include, but are not limited to, the Texas mixed
beverage tax and the Texas franchise tax.
(2) Flow-through funds mandated by contract.
Flow-through funds that are mandated by contract to be distributed to other
entities or persons, limited to:
(A) sales
commissions, as that term is defined by subsection (b)(11) of this section, to
non-employees, including split-fee real estate commissions;
(B) the tax basis as determined under the
Internal Revenue Code of securities underwritten; and
(C) subcontracting payments handled by the
taxable entity to provide services, labor, or materials in connection with the
actual or proposed design, construction, remodeling, or repair of improvements
on real property or the location of the boundaries of real property;
(3) Principal repayments. A
taxable entity that is a lending institution shall exclude the principal
repayment of loans;
(4) Tax basis
of securities and loans. A taxable entity shall exclude the tax basis, as
determined under the Internal Revenue Code, of securities and loans
sold;
(5) Legal services. A taxable
entity that provides legal services shall exclude:
(A) the following flow-through funds that are
mandated by law, contract, or fiduciary duty to be distributed to the claimant
by the claimant's attorney or to other entities on behalf of a claimant by the
claimant's attorney:
(i) damages due the
claimant;
(ii) funds subject to a
lien or other contractual obligation arising out of the representation, other
than fees owed to the attorney;
(iii) funds subject to a subrogation interest
or other third-party contractual claim; and
(iv) fees paid an attorney in the matter who
is not a member, partner, shareholder, or employee of the taxable
entity;
(B)
reimbursement of the taxable entity's expenses incurred in prosecuting a
claimant's matter that are specific to the matter and that are not general
operating expenses; and
(C)
regardless of whether it was included in the calculation of total revenue under
subsection (d) of this section, $500 per pro bono services case handled by the
attorney, but only if the attorney maintains records of the pro bono services
for auditing purposes in accordance with the manner in which those services are
reported to the State Bar of Texas;
(6) Pharmacy cooperative. A taxable entity
that is a pharmacy cooperative shall exclude flow-through funds from rebates
from pharmacy wholesalers that are distributed to the pharmacy cooperative's
shareholders;
(7) Staff leasing
services company. A taxable entity that is a staff leasing services company
shall exclude payments received from a client company for wages, payroll taxes
on those wages, employee benefits, and workers' compensation benefits for the
employees assigned to the client company. A staff leasing services company
cannot exclude payments received from a client company for payments made to
independent contractors assigned to the client company and reportable on
Internal Revenue Service Form 1099;
(8) Dividends and interest from federal
obligations. A taxable entity shall exclude dividends and interest received
from federal obligations;
(9)
Management company. A taxable entity that is a management company shall exclude
reimbursements of specified costs incurred in its conduct of the active trade
or business of a managed entity, including wages and cash compensation as
determined under Tax Code, §
171.1013(a) and
(b);
(10) Health care provider. A taxable entity
that is a health care provider shall exclude:
(A) the total amount of payments, including
co-payments and deductibles from the patient or supplemental insurance,
received:
(i) under the Medicaid program,
Medicare program, Indigent Health Care and Treatment Act (Health and Safety
Code, Chapter 61), and Children's Health Insurance Program (CHIP), including
any plans under these programs;
(ii) for professional services provided in
relation to a workers' compensation claim under Labor Code, Title 5;
(iii) for professional services provided to a
beneficiary rendered under the TRICARE military health system, including any
plans under this program;
(iv) from
a third-party agent or administrator for revenue earned under clauses (i) -
(iii) of this subparagraph; and
(B) the actual costs, regardless of whether
it was included in the calculation of total revenue under subsection (d)(1) -
(6) of this section, of uncompensated care provided, but only if the provider
maintains records of the uncompensated care for auditing purposes and, if the
provider later receives payment for all or part of that care, the provider
adjusts the amount excluded for the tax year in which the payment is
received.
(11) Health
care institution. A health care provider that is a health care institution
shall exclude 50% of the exclusion described in paragraph (10) of this
subsection.
(12) Federal government
and armed forces. A taxable entity shall exclude all revenue received that is
directly derived from the operation of a facility that is:
(A) located on property owned or leased by
the federal government; and
(B)
managed or operated primarily to house members of the armed forces of the
United States.
(13) Oil
and gas. During the dates, certified by the comptroller, in which the monthly
average closing price of West Texas Intermediate crude oil is below $40 per
barrel and the average closing price of gas is below $5 per MMBtu, as recorded
on the New York Mercantile Exchange (NYMEX), a taxable entity shall exclude
total revenue received from oil or gas produced from:
(A) an oil well designated by the Railroad
Commission of Texas or similar authority of another state whose production
averages less than 10 barrels a day over a 90-day period; and
(B) a gas well designated by the Railroad
Commission of Texas or similar authority of another state whose production
averages less than 250 mcf a day over a 90-day period.
(14) Qualified destination management
company. Effective for reports originally due on or after January 1, 2010, a
taxable entity that is a qualified destination management company as defined by
Tax Code, §
151.0565 shall exclude from
its total revenue payments made to other entities or persons to provide
services, labor, or materials in connection with the provision of destination
management services as defined in Tax Code, §
151.0565.
Notes
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