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A BILL TO BE ENTITLED
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AN ACT
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relating to ready-mix concrete trucks. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1012(a)(2), Tax Code, is amended to |
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read as follows: |
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(2) "Production" includes construction, installation, |
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manufacture, development, mining, extraction, improvement, |
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creation, raising, or growth. The term includes the manufacture of |
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a good while in transit. |
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SECTION 2. Section 171.1012(d), Tax Code, is amended to |
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read as follows: |
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(d) In addition to the amounts includable under Subsection |
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(c), the cost of goods sold includes the following costs in relation |
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to the taxable entity's goods: |
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(1) deterioration of the goods; |
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(2) obsolescence of the goods; |
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(3) spoilage and abandonment, including the costs of |
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rework labor, reclamation, and scrap; |
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(4) if the property is held for future production, |
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preproduction direct costs allocable to the property, including |
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costs of purchasing the goods and of storage and handling the goods, |
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as provided by Subsections (c)(4) and (c)(5); |
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(5) postproduction direct costs allocable to the |
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property, including storage and handling costs, as provided by |
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Subsections (c)(4) and (c)(5); |
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(6) the cost of insurance on a plant or a facility, |
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machinery, equipment, or materials directly used in the production |
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of the goods; |
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(7) the cost of insurance on the produced goods; |
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(8) the cost of utilities, including electricity, gas, |
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and water, directly used in the production of the goods; |
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(9) the costs of quality control, including |
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replacement of defective components pursuant to standard warranty |
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policies, inspection directly allocable to the production of the |
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goods, and repairs and maintenance of goods; [and] |
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(10) licensing or franchise costs, including fees |
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incurred in securing the contractual right to use a trademark, |
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corporate plan, manufacturing procedure, special recipe, or other |
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similar right directly associated with the goods produced; and |
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(11) production costs allocable to the manufacturing |
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of a good while in transit. |
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SECTION 3. Section 622.011(a), Transportation Code, is |
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amended to read as follows: |
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(a) In this subchapter, "ready-mixed concrete truck" means: |
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(1) a vehicle designed exclusively to transport or |
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manufacture ready-mixed concrete and includes a vehicle designed |
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exclusively to transport while manufacturing [and manufacture] |
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ready-mixed concrete; [or] |
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(2) a concrete pump truck; or |
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(3) a volumetric ready-mix concrete truck. |
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SECTION 4. The changes in law made by this Act to Section |
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171.1012, Tax Code, apply only to a report originally due on or |
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after January 1, 2016. |
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SECTION 5. This Act takes effect September 1, 2015. |