| 1 | 1 | | By: Larson H.B. No. 3647 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to ready-mix concrete trucks. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 171.1012(a)(2), Tax Code, is amended to |
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| 9 | 9 | | read as follows: |
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| 10 | 10 | | (2) "Production" includes construction, installation, |
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| 11 | 11 | | manufacture, development, mining, extraction, improvement, |
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| 12 | 12 | | creation, raising, or growth. The term includes the manufacture of |
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| 13 | 13 | | a good while in transit. |
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| 14 | 14 | | SECTION 2. Section 171.1012(d), Tax Code, is amended to |
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| 15 | 15 | | read as follows: |
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| 16 | 16 | | (d) In addition to the amounts includable under Subsection |
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| 17 | 17 | | (c), the cost of goods sold includes the following costs in relation |
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| 18 | 18 | | to the taxable entity's goods: |
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| 19 | 19 | | (1) deterioration of the goods; |
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| 20 | 20 | | (2) obsolescence of the goods; |
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| 21 | 21 | | (3) spoilage and abandonment, including the costs of |
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| 22 | 22 | | rework labor, reclamation, and scrap; |
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| 23 | 23 | | (4) if the property is held for future production, |
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| 24 | 24 | | preproduction direct costs allocable to the property, including |
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| 25 | 25 | | costs of purchasing the goods and of storage and handling the goods, |
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| 26 | 26 | | as provided by Subsections (c)(4) and (c)(5); |
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| 27 | 27 | | (5) postproduction direct costs allocable to the |
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| 28 | 28 | | property, including storage and handling costs, as provided by |
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| 29 | 29 | | Subsections (c)(4) and (c)(5); |
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| 30 | 30 | | (6) the cost of insurance on a plant or a facility, |
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| 31 | 31 | | machinery, equipment, or materials directly used in the production |
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| 32 | 32 | | of the goods; |
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| 33 | 33 | | (7) the cost of insurance on the produced goods; |
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| 34 | 34 | | (8) the cost of utilities, including electricity, gas, |
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| 35 | 35 | | and water, directly used in the production of the goods; |
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| 36 | 36 | | (9) the costs of quality control, including |
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| 37 | 37 | | replacement of defective components pursuant to standard warranty |
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| 38 | 38 | | policies, inspection directly allocable to the production of the |
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| 39 | 39 | | goods, and repairs and maintenance of goods; [and] |
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| 40 | 40 | | (10) licensing or franchise costs, including fees |
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| 41 | 41 | | incurred in securing the contractual right to use a trademark, |
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| 42 | 42 | | corporate plan, manufacturing procedure, special recipe, or other |
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| 43 | 43 | | similar right directly associated with the goods produced; and |
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| 44 | 44 | | (11) production costs allocable to the manufacturing |
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| 45 | 45 | | of a good while in transit. |
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| 46 | 46 | | SECTION 3. Section 622.011(a), Transportation Code, is |
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| 47 | 47 | | amended to read as follows: |
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| 48 | 48 | | (a) In this subchapter, "ready-mixed concrete truck" means: |
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| 49 | 49 | | (1) a vehicle designed exclusively to transport or |
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| 50 | 50 | | manufacture ready-mixed concrete and includes a vehicle designed |
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| 51 | 51 | | exclusively to transport while manufacturing [and manufacture] |
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| 52 | 52 | | ready-mixed concrete; [or] |
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| 53 | 53 | | (2) a concrete pump truck; or |
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| 54 | 54 | | (3) a volumetric ready-mix concrete truck. |
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| 55 | 55 | | SECTION 4. The changes in law made by this Act to Section |
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| 56 | 56 | | 171.1012, Tax Code, apply only to a report originally due on or |
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| 57 | 57 | | after January 1, 2016. |
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| 58 | 58 | | SECTION 5. This Act takes effect September 1, 2015. |
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