TO: | Honorable Rene Oliveira, Chair, House Committee on Ways & Means |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2485 by King, Phil (Relating to the inclusion of gas and electric transmission and distribution costs in the cost of goods sold for purposes of the franchise tax.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | $0 |
2011 | $0 |
2012 | $0 |
2013 | $0 |
2014 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) from Property Tax Relief Fund 304 |
---|---|
2010 | ($18,000,000) |
2011 | ($18,450,000) |
2012 | ($19,096,000) |
2013 | ($19,860,000) |
2014 | ($20,654,000) |
The bill would amend Chapter 171 of the Tax Code, regarding the franchise tax, to include gas and electric transmission and distribution costs in cost of goods sold for calculating taxable margin for certain taxable entities.
The bill would allow the inclusion of the additional costs for electricity sold by an electric utility, retail electric provider, or power marketer, or for natural gas sold by a gas utility, as those terms are defined in the Utilities Code.
The bill would take effect on January 1, 2010, and apply to a report due on or after that date.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, MN, SD, SM
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