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A BILL TO BE ENTITLED
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AN ACT
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relating to the definition of controlling interest for purposes of |
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the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.0001(8), Tax Code, is amended to |
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read as follows: |
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(8) "Controlling interest" means: |
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(A) for a corporation, either more than 50 |
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percent, owned directly or indirectly, of the total combined voting |
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power of all classes of stock of the corporation, or more than 50 |
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percent, owned directly or indirectly, of the beneficial ownership |
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interest in the voting stock of the corporation; |
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(B) for a partnership, [association, trust, or
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other entity other than a limited liability company,] more than 50 |
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percent, owned directly or indirectly, of the capital or[,] |
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profits[, or beneficial] interest in the partnership[,
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association, trust, or other entity]; [and] |
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(C) for an association, [for a limited liability
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company, either] more than 50 percent, owned directly or |
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indirectly, of the capital or profits interest in the association; |
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(D) for a trust, more than 50 percent, owned |
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directly or indirectly, of the current beneficial interest in the |
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trust corpus or income; |
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(E) for a limited liability company, either more |
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than 50 percent, owned directly or indirectly, of the total |
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membership interest of the limited liability company or more than |
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50 percent, owned directly or indirectly, of the beneficial |
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ownership interest in the membership interest of the limited |
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liability company; or |
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(F) for any other entity, more than 50 percent, |
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owned directly or indirectly, of the capital or profits interest in |
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the entity [total membership interest of the limited liability
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company or more than 50 percent, owned directly or indirectly, of
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the beneficial ownership interest in the membership interest of the
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limited liability company]. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2012. |