BILL ANALYSIS |
C.S.H.B. 4002 |
By: Bonnen, Dennis |
Ways & Means |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties contend that the language used to calculate the franchise tax is unnecessarily vague. C.S.H.B. 4002 seeks to eliminate this lack of clarity by changing the definition of "production" as that term is used in determining the cost of goods sold for franchise tax purposes.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 4002 amends the Tax Code to remove installation from the activities that constitute production for purposes of determining cost of goods sold in relation to a taxable entity's margin for the franchise tax. The bill specifies that its provisions are a clarification of existing law and do not imply that certain existing law may be construed as inconsistent with the law as amended by the bill.
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EFFECTIVE DATE
September 1, 2017.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 4002 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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