Bill Text: TX HB83 | 2015-2016 | 84th Legislature | Introduced

Texas House Bill 83 (Prior Session Legislation)

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) 2015-04-14 - Left pending in committee [HB83 Detail]

Download: Texas-2015-HB83-Introduced.html

	84R945 KLA-D

	By: White of Tyler	H.B. No. 83



	A BILL TO BE ENTITLED
	AN ACT
	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 (q) to read as follows:
	(q) 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, 2016.