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Bill

HB 3684

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

89th Legislature (2025) Introduced by Angie Button and 2 co-sponsors

Texas bill exempts registered securities market operators from including certain transaction payments in taxable revenue, reducing their franchise tax liability.

Laid on the table subject to call
#financial--general(i0365) #taxation--franchise(i0807)
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WeVote Research Nonpartisan
Bill Summary · HB 3684

Legislative bill overview

HB 3684 would exclude certain securities transaction payments from the taxable revenue calculations of registered securities market operators in Texas. This creates a specific tax carve-out for payments related to securities trading activities, potentially reducing the tax burden on entities that operate stock exchanges or similar trading platforms.

Why is this important

Securities market operators contribute to state tax revenue through franchise tax calculations based on total revenue. This exemption could reduce state tax collections from these entities, affecting available funding for state services, or alternatively, it could be framed as competitive tax policy to retain or attract major financial trading infrastructure to Texas.

Potential points of contention

  • Revenue impact: The fiscal effect on state tax collections is unclear without knowing which transactions would be excluded and how many major market operators operate in Texas
  • Selective tax treatment: Creates preferential tax treatment for a specific industry sector, raising equity questions about why securities markets receive exclusions that other businesses don't
  • Definition clarity: The bill's language regarding "certain securities transaction payments" may lack specificity, creating ambiguity about which payments qualify and potential disputes with the tax authority

Compiled from official sources — confirm details with the bill’s official record.

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