By: Bonnen of Brazoria (Senate Sponsor - Nelson) H.B. No. 4002
(In the Senate - Received from the House May 5, 2017;
May 8, 2017, read first time and referred to Committee on Finance;
May 11, 2017, reported favorably by the following vote: Yeas 10,
Nays 0; May 11, 2017, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the definition of production used in determining the
cost of goods sold for franchise tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1012(a)(2), Tax Code, is amended to
read as follows:
(2) "Production" means [includes] construction,
[installation,] manufacture, development, mining, extraction,
improvement, creation, raising, or growth.
SECTION 2. The amendment made by this Act to Section
171.1012, Tax Code, is a clarification of existing law and does not
imply that Section 171.1012, Tax Code, before the amendment made by
this Act may be construed as inconsistent with Section 171.1012,
Tax Code, as amended by this Act.
SECTION 3. This Act takes effect September 1, 2017.
* * * * *