SB 1058: franchise tax cut for stock exchanges that pay broker rebates

Caption

relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator.

Caption from analyzed text · version F.

Summary

Rebates come off revenue. No such exchange operates in Texas today, per the pitch.

The bill lets a registered stock or securities exchange leave out of its Texas franchise tax revenue the rebates it pays to brokers and dealers for adding trading volume to the market. It touches only exchange operators registered with federal securities or commodities regulators and classed under one industry code, and no such exchange operates in Texas today, according to the pitch. Starting with franchise tax reports due on or after January 1, 2026, those operators pay tax on revenue after subtracting the rebates, which lowers their tax bill.

Receipt

The receipt

89R-SB1058 · 2025-02-03

SOLD BY

Sen. Tan ParkerRSenate 12

+ 2 coauthors

ITEM

relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator.

WHAT IT DOES

Rebates come off revenue. No such exchange operates in Texas today, per the pitch.

The bill lets a registered stock or securities exchange leave out of its Texas franchise tax revenue the rebates it pays to brokers and dealers for adding trading volume to the market. It touches only exchange operators registered with federal securities or commodities regulators and classed under one industry code, and no such exchange operates in Texas today, according to the pitch. Starting with franchise tax reports due on or after January 1, 2026, those operators pay tax on revenue after subtracting the rebates, which lowers their tax bill.

CHARGES

[ ] NONE FOUND

TOTAL

Net to General Revenue · FY 2026$0

LBB estimate, flow · fiscal note version S · ( ) = negative · source

Sources

Fiscal note · version S · March 31, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for SB1058, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($560,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.

First year · FY 2026 · $0

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Feb 3, 2025Received by the Secretary of the Senate
Feb 3, 2025Filed
Feb 24, 2025Read first time
Feb 24, 2025Referred to Business & Commerce
Mar 18, 2025Scheduled for public hearing on . . .
Mar 18, 2025Considered in public hearing
Mar 18, 2025Testimony taken in committee
Mar 18, 2025Left pending in committee
Mar 27, 2025Considered in public hearing
Mar 27, 2025Vote taken in committee
Mar 31, 2025Reported favorably as substituted
Mar 31, 2025Recommended for local & uncontested calendar
Mar 31, 2025Committee report printed and distributed
Apr 1, 2025Co-author authorized
Apr 10, 2025Co-author authorized
Apr 10, 2025Placed on local & uncontested calendar
Apr 10, 2025Laid before the Senate
Apr 10, 2025Read 2nd time & passed to engrossment
Apr 10, 2025Vote recorded in Journal
Apr 10, 2025Three day rule suspended
Apr 10, 2025Record vote
Apr 10, 2025Read 3rd time
Apr 10, 2025Passed
Apr 10, 2025Record vote
Apr 10, 2025Reported engrossed
Apr 14, 2025Received from the Senate
Apr 17, 2025Read first time
Apr 17, 2025Referred to Ways & Means
Apr 23, 2025Considered in formal meeting
Apr 23, 2025Reported favorably w/o amendment(s)
Apr 25, 2025Comte report filed with Committee Coordinator
Apr 25, 2025Committee report distributed
Apr 28, 2025Committee report sent to Calendars
Apr 28, 2025Laid out in lieu of companion CSHB 3684
Apr 28, 2025Read 2nd time
Apr 28, 2025Passed to 3rd reading
Apr 28, 2025Record vote RV#591
Apr 28, 2025Statement(s) of vote recorded in Journal
Apr 29, 2025Read 3rd time
Apr 29, 2025Passed
Apr 29, 2025Record vote RV#784
Apr 29, 2025Statement(s) of vote recorded in Journal
Apr 29, 2025House passage reported
Apr 29, 2025Reported enrolled
Apr 30, 2025Signed in the Senate
May 1, 2025Signed in the House
May 1, 2025Sent to the Governor
May 13, 2025Signed by the Governor
May 13, 2025Effective on 1/1/26

FILED UNDER

CORPORATE WELFARE

THE TEXT

…“operator shall exclude from its total revenue transaction rebate”…

Bill text, enrolled version (F)

The bill gives one industry, registered securities exchanges, a franchise tax exclusion that other businesses do not get, and the stated goal is to attract an exchange to Texas.

SIGNED FOR BY

House · 137 yea · 9 nay

Senate · 29 yea · 1 nay

Sources

House: Final passage · Apr 29, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · Apr 10, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Tan Parker

Donors

Texas Stock Exchange | TXSE Group PAC$40K Texas REALTORS Political Action Committee$25K The Peck Family Trust$25K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Jun 29, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Stock Exchange | TXSE Group PAC$40,000.00

Texas Stock Exchange | TXSE Group PAC

$40,000.00

Cash: $40,000.00
Paid by others: $0.00
Total: $40,000.00

Also funds 10 other sitting lawmakers.

Derived recipient stock · Feb 17, 2026 to Oct 16, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Feb 17, 2026 to Jun 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101060289.

Texas REALTORS Political Action Committee$25,250.00

Texas REALTORS Political Action Committee

$25,250.00

Cash: $25,000.00
Paid by others: $250.00
Total: $25,250.00

fundraiser $250.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 4, 2024 to Oct 9, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986801, 101009904, 101031351.

The Peck Family Trust$25,000.00

The Peck Family Trust

$25,000.00

Cash: $25,000.00
Paid by others: $0.00
Total: $25,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Dec 14, 2024 to Sep 18, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Dec 14, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986801.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Stock Exchange | TXSE Group PAC

$40,000.00

Cash: $40,000.00
Paid by others: $0.00
Total: $40,000.00

Also funds 10 other sitting lawmakers.

Derived recipient stock · Feb 17, 2026 to Oct 16, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Feb 17, 2026 to Jun 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101060289.

×

Texas REALTORS Political Action Committee

$25,250.00

Cash: $25,000.00
Paid by others: $250.00
Total: $25,250.00

fundraiser $250.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 4, 2024 to Oct 9, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986801, 101009904, 101031351.

×

The Peck Family Trust

$25,000.00

Cash: $25,000.00
Paid by others: $0.00
Total: $25,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Dec 14, 2024 to Sep 18, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Dec 14, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986801.

Votes5

House Apr 29, 2025

Yea: 137
Nay: 9
Present, not voting: 2
Absent: 1
Excused: 1

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 784

SB 1058 was passed by (Record 784): 137 Yeas, 9 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 137 (published)
Nay: 9 (published)
Present, not voting: 2 (published)
Absent: 1 (derived from named list)
Excused: 1 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House Apr 28, 2025

Yea: 131
Nay: 13
Present, not voting: 1
Absent: 2
Excused: 3

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 591

SB 1058 was read second time and was passed to third reading by (Record 591): 131 Yeas, 13 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 131 (published)
Nay: 13 (published)
Present, not voting: 1 (published)
Absent: 2 (derived from named list)
Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate Apr 10, 2025

Final passage

Yea: 29
Nay: 1
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

GutierrezNay

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records final passage. Repeated tallies belong to separate votes.

Sources

CSSB 1058 (Parker) Relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator. (viva voce vote) (29-1) "Nay" Gutierrez (29-1) "Nay" Gutierrez

Published stock of positions for this vote, except where marked derived.

Yea: 29 (published)
Nay: 1 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Apr 10, 2025

Suspension of the three-day rule

Yea: 29
Nay: 1
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

GutierrezNay

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records suspension of the three-day rule. Repeated tallies belong to separate votes.

Sources

CSSB 1058 (Parker) Relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator. (viva voce vote) (29-1) "Nay" Gutierrez (29-1) "Nay" Gutierrez

Published stock of positions for this vote, except where marked derived.

Yea: 29 (published)
Nay: 1 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Apr 10, 2025

Passage to engrossment

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records passage to engrossment. Repeated tallies belong to separate votes.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

CSSB 1058 (Parker) Relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator. (viva voce vote) (29-1) "Nay" Gutierrez (29-1) "Nay" Gutierrez

Published stock of positions for this vote, except where marked derived.

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Witnesses4

For: 3
Against: 0
On: 1

Names

For

Self; Starbucks1 registration
Texas Stock Exchange1 registration
TXSE GROUP INC (Texas Stock Exchange)1 registration

On

Comptroller of Public Accounts1 registration

Sources

4 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

Net to General Revenue · FY 2026$0

LBB estimate, flow · fiscal note version S · ( ) = negative · source

Sources

Fiscal note · version S · March 31, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for SB1058, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($560,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.

First year · FY 2026 · $0

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version F by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas Senate · Filed Feb 3, 2025

05/13/2025 E Effective on 1/1/26

Texas Legislature Online · Introduced · Senate Committee Report · Engrossed · House Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors

César BlancoDSenate 29

Royce WestDSenate 23

Companion

HB 3684 by Capriglione (identical)

Subjects

Financial--General

Taxation--Franchise

MORTGAGE BROKERS & BANKERS

Text

The text as introduced · 287 words

89R8403 SRA-F

By: Parker
S.B. No. 1058

A BILL TO BE ENTITLED

AN ACT

relating to the exclusion of certain securities transaction

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

exchange or a member of an exchange for purposes of the franchise

tax.

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 shall exclude from its total revenue:

(1) if the entity is an exchange, transaction rebate

payments made by the exchange to a member of the exchange as part of

a securities transaction; and

(2) if the entity is a member of an exchange,

transaction rebate payments made to the member by the exchange as

part of a securities transaction.

(z) For purposes of Subsection (y):

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

Section 78C(a)(1).

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

Section 78C(a)(3)(A).

(3) "Securities transaction" means the purchase or

sale of a security on an exchange by a member of the exchange.

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

to compensate a member of the exchange in order 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.

Verdict: No flags

The receipt

SOLD BY

ITEM

WHAT IT DOES

CHARGES

TOTAL

HISTORY

SIGNED FOR BY

Donors

Texas Stock Exchange | TXSE Group PAC

Texas REALTORS Political Action Committee

The Peck Family Trust

Texas Stock Exchange | TXSE Group PAC

Texas REALTORS Political Action Committee

The Peck Family Trust

House Apr 29, 2025

House Apr 28, 2025

Senate Apr 10, 2025

Senate Apr 10, 2025

Senate Apr 10, 2025

For

On

Companion