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A BILL TO BE ENTITLED
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AN ACT
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relating to the rate and calculation of the franchise tax for |
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certain oil and gas related entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.002, Tax Code, is amended by adding |
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Subsection (c-3) to read as follows: |
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(c-3) Notwithstanding Subsection (c), a taxable entity is |
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primarily engaged in retail or wholesale trade if the taxable |
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entity is primarily engaged in gathering, transporting, or |
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processing products described by Industry Group 132, 461, or 492 of |
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the Standard Industrial Classification Manual published by the |
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federal Office of Management and Budget. |
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SECTION 2. Section 171.1012, Tax Code, is amended by adding |
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Subsection (k-2) to read as follows: |
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(k-2) Notwithstanding Subsection (e)(3) or (i) or any other |
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provision of this section, a taxable entity that owns or operates a |
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pipeline may subtract as a cost of goods sold a cost related to |
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processing, altering, improving, gathering, transporting, or |
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storing oil, gas, natural gas liquids, refined petroleum products, |
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the constituents of oil or gas, oil or gas products, chemicals, or |
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carbon dioxide. |
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SECTION 3. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 4. This Act takes effect January 1, 2010. |