Texas Senate Bill SB1118

Texas 2015 - 84th Regular

Caption

Relating to the cost of goods sold for purposes of the franchise tax for certain zoos and aquariums.

Impact

The bill, upon enactment, will have a significant effect on state laws regarding franchise taxation for accredited zoos and aquariums. By allowing these entities to adjust their taxable income based on specific operational costs, SB1118 seeks to recognize the unique nature of these organizations and their essential role in animal conservation. This may lead to a more favorable financial environment for such facilities, encouraging improvements in animal care and educational programs.

Summary

SB1118 is a legislative proposal concerning the franchise tax applicable to certain zoos and aquariums within Texas. The bill specifically details provisions for taxable entities accredited by the Association of Zoos and Aquariums, allowing them to subtract costs related to the acquisition, husbandry, production, exhibition, and conservation of animals from their taxable income. This amendment to the Texas Tax Code aims to provide financial relief to such entities, potentially boosting their operational capacity and overall contributions to conservation efforts.

Contention

While the bill could be seen as a positive step for conservation-focused organizations, there may be questions and concerns among legislators regarding tax equity and the prioritization of funds. Some opponents may argue that granting specific tax benefits to zoos and aquariums could lead to a perception of unequal treatment among other entities and sectors, especially if similar allowances are not extended to other non-profits. Debates may center around the balance between supporting animal conservation efforts and ensuring a fair tax structure for all businesses operating within the state.