Texas 2009 - 81st Regular

Texas Senate Bill SB247 Compare Versions

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

Old	New	Differences
1	1	81R980 CBH-F
2	2	By: Shapleigh S.B. No. 247
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the computation of the cost of goods sold for franchise
8	8	tax purposes by certain taxable entities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter C, Chapter 171, Tax Code, is amended
11	11	by adding Section 171.10125 to read as follows:
12	12	Sec. 171.10125. COMPUTATION OF COST OF GOODS SOLD BY
13	13	TAXABLE ENTITY DOING BUSINESS NEAR BORDER. (a) In this section:
14	14	(1) "Border" means the border between this state and
15	15	the United Mexican States.
16	16	(2) "Strategic investment area" means an area
17	17	determined by the comptroller under Subsection (h) that is:
18	18	(A) a county in this state with above state
19	19	average unemployment and below state average per capita income; or
20	20	(B) an area within this state that is a federally
21	21	designated urban enterprise community or an urban enhanced
22	22	enterprise community.
23	23	(b) This section applies only to a taxable entity that:
24	24	(1) has a business or facility located within a
25	25	strategic investment area; and
26	26	(2) conducts at least 90 percent of the taxable
27	27	entity's total business in the strategic investment area.
28	28	(c) In addition to Subsection (b), at least two of the
29	29	following conditions must apply for this section to apply to a
30	30	taxable entity:
31	31	(1) the taxable entity is licensed by the appropriate
32	32	local, state, and federal agencies on both sides of the border to
33	33	conduct border trade;
34	34	(2) the taxable entity is enrolled in the
35	35	Customs-Trade Partnership Against Terrorism (C-TPAT) and Free and
36	36	Secure Trade (FAST) programs or is participating with companies
37	37	that are enrolled;
38	38	(3) the taxable entity invests in and implements
39	39	security, tracking, communication, and surveillance technology
40	40	systems used on commercial vehicles that operate in the strategic
41	41	investment area or in manufacturing and distribution plants located
42	42	on this state's side of the border or makes investment expenditures
43	43	specifically related to and incurs direct costs related to the
44	44	implementation of advanced technologies that protect elements of
45	45	the supply chain, including:
46	46	(A) secure trailers with intelligent locking
47	47	devices and seals;
48	48	(B) systems that detect tampering or
49	49	compromising of cargo;
50	50	(C) systems and protocols that provide instant
51	51	alarms and response to cargo deviation;
52	52	(D) efforts required to collaborate with
53	53	appropriate federal and state agencies on both sides of the border;
54	54	and
55	55	(E) systems and software that allow for the
56	56	tracking and monitoring of vehicles and manufacturing and logistics
57	57	facilities engaged in border trade;
58	58	(4) the taxable entity makes direct expenditures
59	59	related to a business that implements or operates security systems
60	60	that conduct or share information with appropriate federal and
61	61	state agencies relating to the assessment of drivers' dock
62	62	personnel and other individuals who are fundamentally important to
63	63	the border trade process;
64	64	(5) the taxable entity incurs direct costs of
65	65	creating, and training personnel for, new jobs in specialized,
66	66	highly skilled positions related to biotechnology, defense,
67	67	medical, software, and other value-added manufacturing fields in
68	68	the border region; or
69	69	(6) the taxable entity makes other direct investments
70	70	in integrated supply chain transportation systems that incorporate
71	71	sophisticated, embedded broadband communications technology that
72	72	integrates with public sector disaster, hazardous materials
73	73	transfer, congestion relief, vehicle tracking, or emergency
74	74	management systems.
75	75	(d) Subject to Subsection (f), a taxable entity to which
76	76	this section applies may subtract as a cost of goods sold under
77	77	Section 171.1012 any expenditure made or cost incurred relating to
78	78	an item or event listed in Subsection (c) that is not otherwise
79	79	included as a cost of goods sold under Section 171.1012.
80	80	(e) An expenditure made or cost incurred relating to an item
81	81	or event listed in Subsection (c) that is for not more than $150,000
82	82	must be subtracted or depreciated on the report for the period in
83	83	which the expenditure is made or the cost incurred. An expenditure
84	84	made or cost incurred that is for more than $150,000 may be
85	85	subtracted or depreciated equally in three consecutive reports.
86	86	(f) The total amount that may be subtracted under this
87	87	section by all taxable entities during a reporting period may not
88	88	exceed $3 million. If the total amount subtracted as a cost of
89	89	goods sold under this section will exceed $3 million during a
90	90	reporting period, the comptroller shall allocate the $3 million
91	91	that may be subtracted on a pro rata basis. The comptroller may
92	92	require a taxable entity to notify the comptroller of the amount the
93	93	taxable entity intends to subtract under this section before the
94	94	due date of the report on which the taxable entity will subtract the
95	95	amount.
96	96	(g) If the comptroller decreases the amount that a taxable
97	97	entity may subtract under Subsection (f), the taxable entity may,
98	98	subject to the limitation provided by Subsection (f), carry the
99	99	difference in the amounts backward for not more than three
100	100	consecutive reports or forward for not more than seven consecutive
101	101	reports.
102	102	(h) Not later than September 1 each year, the comptroller
103	103	shall determine areas that qualify as strategic investment areas
104	104	using the most recently completed full calendar year data available
105	105	on that date and, not later than October 1, the comptroller shall
106	106	publish a list and map of the designated areas. The designation is
107	107	effective for the following calendar year for purposes of this
108	108	section.
109	109	(i) A taxable entity may not establish a credit under this
110	110	section on or after January 1, 2017.
111	111	SECTION 2. This Act applies only to a report originally due
112	112	on or after the effective date of this Act.
113	113	SECTION 3. This Act takes effect January 1, 2010.