Texas SB 266: Relating to a prohibition on the enactment of a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.

Bill Text

By:AASpringer S.B.ANo.A266
A BILL TO BE ENTITLED
AN ACT
relating to a prohibition on the enactment of a law imposing an
occupation tax on certain entities that enter into transactions
conveying securities or imposing a tax on certain securities
transactions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTIONA1.AAChapter 101, Tax Code, is amended by adding
Section 101.010 to read as follows:
Sec.A101.010.AALIMITATION: TAXES IMPOSED ON SECURITIES
TRANSACTIONS AND ENTITIES ENGAGING IN SECURITIES TRANSACTIONS. (a)
In this section:
(1)AA"Registered securities market operator" means any
of the following entities, to the extent the entity is subject to
registration with and regulation by the United States Securities
and Exchange Commission or the United States Commodity Futures
Trading Commission, or the successor in function to either
commission:
(A)AAa self-regulatory organization, financial
institution, alternative trading system, broker, dealer, clearing
agency, or transfer agent, as those terms are defined by the
Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) in
effect on January 1, 2023, or a regulation adopted under that Act in
effect on that date;
(B)AAan exchange that is registered as a national
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88R3292 RDS-F 1

securities exchange under Section 6 of the Securities Exchange Act
of 1934 (15 U.S.C. Section 78f);
(C)AAa board of trade, commodity pool operator,
derivatives clearing organization, electronic trading facility, or
organized exchange, as those terms are defined by the Commodity
Exchange Act (7 U.S.C. Section 1 et seq.) in effect on January 1,
2023;
(D)AAan affiliate, subsidiary, or facility of an
entity described by Paragraph (A), (B), or (C); or
(E)AAan OTC reporting facility, as that term is
defined by rules promulgated by the Financial Industry Regulatory
Authority and in effect on January 1, 2023.
(2)AA"Securities transaction" means the purchase or
sale of a security, a contract or agreement to purchase or sell a
security, or a service to facilitate, match parties to, process,
report, clear, or settle the purchase or sale of a security on
behalf of a customer.
(3)AA"Security" has the meaning assigned by the
Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) in
effect on January 1, 2023.
(b)AANotwithstanding any other law, the legislature may not
enact a law that imposes:
(1)AAan occupation tax on a registered securities
market operator; or
(2)AAa tax on a securities transaction conducted by a
registered securities market operator.
(c)AAThis section does not prohibit:
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S.B.ANo.A266
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(1)AAthe imposition of:
(A)AAa general business tax measured by business
activity;
(B)AAa tax on the production of minerals;
(C)AAa tax on insurance premiums;
(D)AAsales and use taxes on tangible personal
property or services; or
(E)AAa fee based on the cost of processing or
creating documents; or
(2)AAa change in the rate of a tax in existence on
September 1, 2023.
SECTIONA2.AAThis Act takes effect September 1, 2023.
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S.B.ANo.A266
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