| 1 | 1 | | 81R9865 BEF-D |
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| 2 | 2 | | By: Howard of Fort Bend H.B. No. 3516 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the rate and calculation of the franchise tax for |
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| 8 | 8 | | certain oil and gas related entities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 171.002, Tax Code, is amended by adding |
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| 11 | 11 | | Subsection (c-3) to read as follows: |
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| 12 | 12 | | (c-3) Notwithstanding Subsection (c), a taxable entity is |
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| 13 | 13 | | primarily engaged in retail or wholesale trade if the taxable |
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| 14 | 14 | | entity is primarily engaged in gathering, transporting, or |
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| 15 | 15 | | processing products described by Industry Group 132, 461, or 492 of |
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| 16 | 16 | | the Standard Industrial Classification Manual published by the |
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| 17 | 17 | | federal Office of Management and Budget. |
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| 18 | 18 | | SECTION 2. Section 171.1012, Tax Code, is amended by adding |
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| 19 | 19 | | Subsection (k-2) to read as follows: |
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| 20 | 20 | | (k-2) Notwithstanding Subsection (e)(3) or (i) or any other |
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| 21 | 21 | | provision of this section, a taxable entity that owns or operates a |
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| 22 | 22 | | pipeline may subtract as a cost of goods sold a cost related to |
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| 23 | 23 | | processing, altering, improving, gathering, transporting, or |
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| 24 | 24 | | storing oil, gas, natural gas liquids, refined petroleum products, |
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| 25 | 25 | | the constituents of oil or gas, oil or gas products, chemicals, or |
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| 26 | 26 | | carbon dioxide. |
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| 27 | 27 | | SECTION 3. This Act applies only to a report originally due |
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| 28 | 28 | | on or after the effective date of this Act. |
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| 29 | 29 | | SECTION 4. This Act takes effect January 1, 2010. |
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