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Texas Legislature· SB 1058Effective on 1/1/26

Relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator, the official text

Shown verbatim: the complete text as captured from the official page posted by the Texas Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
S.B. No. 1058

AN ACT

relating to the exclusion of certain securities transaction

payments from the total revenue of a taxable entity that is a

registered securities market operator.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 171.0001(13-a), Tax Code, is amended to

read as follows:

(13-a) "Security," for purposes of Sections

171.1011(g), 171.1011(g-2), 171.1011(y), 171.1011(z), and

171.106(f) only, has the meaning assigned by Section 475(c)(2),

Internal Revenue Code, and includes instruments described by

Sections 475(e)(2)(B), (C), and (D) of that code.

SECTION 2. Section 171.1011, Tax Code, is amended by adding

Subsections (y) and (z) to read as follows:

(y) A taxable entity that is a registered securities market

operator shall exclude from its total revenue transaction rebate

payments made by the operator to a broker or dealer as part of a

securities transaction.

(z) For purposes of Subsection (y):

(1) "Broker" has the meaning assigned by 15 U.S.C.

Section 78c(a)(4).

(2) "Dealer" has the meaning assigned by 15 U.S.C.

Section 78c(a)(5).

(3) "Registered securities market operator" means an

entity that is:

(A) engaged in activities described in category

523210 of the 2022 North American Industry Classification System;

and

(B) subject to registration with and regulation

by the United States Securities and Exchange Commission or the

United States Commodity Futures Trading Commission.

(4) "Securities transaction" means the purchase or

sale of a security by a broker or dealer.

(5) "Transaction rebate payment" means an amount paid

to incentivize a broker or dealer to provide liquidity to the

market.

SECTION 3. This Act applies only to a report originally due

on or after the effective date of this Act.

SECTION 4. This Act takes effect January 1, 2026.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 1058 passed the Senate on

April 10, 2025, by the following vote: Yeas 29, Nays 1.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1058 passed the House on

April 29, 2025, by the following vote: Yeas 137, Nays 9, two

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor
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