83R2686 KLA-D
By: Hilderbran H.B. No. 1289
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain transportation services costs
in determining total revenue for purposes of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1011, Tax Code, is amended by adding
Subsection (v) to read as follows:
(v) A taxable entity primarily engaged in the business of
transporting commodities by waterways that does not subtract cost
of goods sold in computing its taxable margin shall exclude from its
total revenue direct costs of providing inbound and outbound
transportation services by intrastate or interstate waterways to
the same extent that a taxable entity that sells in the ordinary
course of business real or tangible personal property would be
authorized by Section 171.1012 to subtract those costs as costs of
goods sold in computing its taxable margin.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2014.