Bill filed in Texas Senate Would Exclude Tenant Pass-Through Payments from a Landlord’s Total Revenue

2009-03-03T21:02:31+00:00

Under current franchise tax law, 100% of the payments that a landlord receives from a tenant, including so-called "pass-through expenses" or "triple-net expenses," which are tenants' reimbursements of the landlord's operating expenses, are included in the landlord's Total Revenue for calculating Texas franchise tax owed.  Tenant pass-through expenses typically include real property taxes, insurance costs, [...]