Bill Text: TX HB1365 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the computation of cost of goods sold for purposes of the franchise tax by taxable entities primarily engaged in the business of harvesting trees for wood.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-02-27 - Referred to Ways & Means [HB1365 Detail]
Download: Texas-2017-HB1365-Introduced.html
85R8922 GRM-D | ||
By: White | H.B. No. 1365 |
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relating to the computation of cost of goods sold for purposes of | ||
the franchise tax by taxable entities primarily engaged in the | ||
business of harvesting trees for wood. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 171.1012, Tax Code, is amended by adding | ||
Subsection (p) to read as follows: | ||
(p) Notwithstanding Subsection (i) or any other provision | ||
of this section, a taxable entity that is primarily engaged in the | ||
business of harvesting trees for wood may subtract as cost of goods | ||
sold the direct costs of acquiring or producing the timber for the | ||
wood that are specified by this subsection or otherwise described | ||
by this section, regardless of whether the taxable entity owns the | ||
land from which the trees are harvested, the harvested timber, or | ||
the wood resulting from the harvested timber. For purposes of this | ||
subsection, direct costs include costs of: | ||
(1) moving harvesting equipment; | ||
(2) severing timber; | ||
(3) transporting timber to and from a mill or | ||
designated delivery point; | ||
(4) obtaining, using, storing, or maintaining | ||
equipment necessary for an activity described by Subdivision (1), | ||
(2), or (3); and | ||
(5) other supplies, labor, freight, and fuel necessary | ||
for an activity described by Subdivision (1), (2), or (3). | ||
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, 2018. |