Bill Text: TX SB653 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to the payment of franchise taxes by taxable entity that employs or contracts with a professional athlete.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2021-05-11 - Co-author authorized [SB653 Detail]

Download: Texas-2021-SB653-Introduced.html

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By: Springer S.B. No. 653

A BILL TO BE ENTITLED
AN ACT
relating to the payment of franchise taxes by taxable entity that
employs or contracts with a professional athlete.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1012, Tax Code, is amended by adding
Subsection (u) to read as follows:
(u) Notwithstanding any other provision of this section, a
taxable entity that employs or contracts with a professional
athlete and that elects to subtract costs of goods sold may not
include the cost to employ the professional athlete as labor costs
when calculating the entity's costs of goods sold to the extent the
amount paid to the athlete exceeds the limit on wage and cash
compensation under Section 171.1013(c) as applied to the athlete.
In this subsection, "professional athlete" has the meaning assigned
by Section 406.095, Labor Code.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2021.