Texas 2009 - 81st Regular

Texas House Bill HB4268 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R10298 KLA-F
2	2	By: Howard of Fort Bend H.B. No. 4268
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the determination of cost of goods sold for purposes of
8	8	computing the franchise tax.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 171.1012, Tax Code, is amended by adding
11	11	Subsection (q) to read as follows:
12	12	(q) Subject to Section 171.1014, a taxable entity that
13	13	elects to subtract cost of goods sold for the purpose of computing
14	14	its taxable margin may, instead of determining its cost of goods
15	15	sold in accordance with the other provisions of this section, elect
16	16	to determine cost of goods sold as follows:
17	17	(1) for a taxable entity treated for federal income
18	18	tax purposes as a corporation, the cost of goods sold is the amount
19	19	reportable as cost of goods sold on line 2, Internal Revenue Service
20	20	Form 1120;
21	21	(2) for a taxable entity treated for federal income
22	22	tax purposes as a partnership, the cost of goods sold is the amount
23	23	reportable as cost of goods sold on line 2, Internal Revenue Service
24	24	Form 1065;
25	25	(3) for a taxable entity treated for federal income
26	26	tax purposes as an S corporation, the cost of goods sold is the
27	27	amount reportable as cost of goods sold on line 2, Internal Revenue
28	28	Service Form 1120S; or
29	29	(4) for any other taxable entity, the cost of goods
30	30	sold is an amount determined in a manner substantially equivalent
31	31	to the amount for Subdivision (1), (2), or (3) determined by rules
32	32	the comptroller shall adopt.
33	33	SECTION 2. This Act applies only to a report originally due
34	34	on or after the effective date of this Act.
35	35	SECTION 3. This Act takes effect January 1, 2010.