Bill Text: TX HB2939 | 2015-2016 | 84th Legislature | Introduced

Texas House Bill 2939 (Prior Session Legislation)

Introduced

Bill Title: Relating to the deduction of certain officers' compensation as a cost of goods sold for purposes of the franchise tax.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2015-03-16 - Referred to Ways & Means [HB2939 Detail]

Download: Texas-2015-HB2939-Introduced.html

	84R13303 BEF-F

	By: Capriglione	H.B. No. 2939



	A BILL TO BE ENTITLED
	AN ACT
	relating to the deduction of certain officers' compensation as a
	cost of goods sold for purposes of the franchise tax.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 171.1012(e), Tax Code, is amended to
	read as follows:
	(e) The cost of goods sold does not include the following
	costs in relation to the taxable entity's goods:
	(1) the cost of renting or leasing equipment,
	facilities, or real property that is not used for the production of
	the goods;
	(2) selling costs, including employee expenses
	related to sales;
	(3) distribution costs, including outbound
	transportation costs;
	(4) advertising costs;
	(5) idle facility expense;
	(6) rehandling costs;
	(7) bidding costs, which are the costs incurred in the
	solicitation of contracts ultimately awarded to the taxable entity;
	(8) unsuccessful bidding costs, which are the costs
	incurred in the solicitation of contracts not awarded to the
	taxable entity;
	(9) interest, including interest on debt incurred or
	continued during the production period to finance the production of
	the goods;
	(10) income taxes, including local, state, federal,
	and foreign income taxes, and franchise taxes that are assessed on
	the taxable entity based on income;
	(11) strike expenses, including costs associated with
	hiring employees to replace striking personnel, but not including
	the wages of the replacement personnel, costs of security, and
	legal fees associated with settling strikes;
	(12) officers' compensation that is not compensation
	for direct labor;
	(13) costs of operation of a facility that is:
	(A) located on property owned or leased by the
	federal government; and
	(B) managed or operated primarily to house
	members of the armed forces of the United States; and
	(14) any compensation paid to an undocumented worker
	used for the production of goods. As used in this subdivision:
	(A) "undocumented worker" means a person who is
	not lawfully entitled to be present and employed in the United
	States; and
	(B) "goods" includes the husbandry of animals,
	the growing and harvesting of crops, and the severance of timber
	from realty.
	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, 2016.