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A BILL TO BE ENTITLED
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AN ACT
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relating to the amount of indirect or administrative overhead costs |
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that a taxable entity may subtract as a cost of goods sold under the |
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franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1012(f), Tax Code, is amended to |
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read as follows: |
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(f) A taxable entity may subtract as a cost of goods sold |
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indirect or administrative overhead costs, including all mixed |
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service costs, such as security services, legal services, data |
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processing services, accounting services, personnel operations, |
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and general financial planning and financial management costs, that |
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it can demonstrate are allocable to the acquisition or production |
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of goods, except that the amount subtracted may not exceed 10 [four] |
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percent of the taxable entity's total indirect or administrative |
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overhead costs, including all mixed service costs. Any costs |
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excluded under Subsection (e) may not be subtracted under this |
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subsection. |
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SECTION 2. 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 3. This Act takes effect January 1, 2014. |