The Comptroller of Public Accounts proposes an amendment to §3.591, concerning margin: apportionment.

Language is added in subsection (a) to indicate that, where noted, the provisions of this section apply to reports other than those originally due on or after January 1, 2008.

Subsection (e)(16) is amended to implement House Bill 4611, 81st Legislature, 2009. Effective for reports originally due on or after January 1, 2010, if a lending institution categorizes a loan or security as "Securities Available for Sale" or "Trading Securities" under Financial Accounting Standard No. 115, the gross proceeds of the sale of that loan or security are considered gross receipts. Subsection (e)(19) is amended to clarify that the sourcing of a passive entity's net distributive loss is the principal place of business of the passive entity. The reference to paragraph (30) in subsection (e)(20) has been corrected to reference paragraph (29).

John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect, there will be no significant revenue impact on the state or units of local government.

Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the public benefit anticipated as a result of enforcing the rule will be by implementing legislation enacted by the 81st Legislature, 2009, and by clarifying sourcing for passive entities. This rule is proposed under Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Bryant K. Lomax, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711.

This amendment is proposed under Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

The amendment implements Tax Code, §§171.103, 171.1055, 171.106, and 171.1121.