85R17800 TJB-D
 
  By: Wray H.B. No. 423
 
  Substitute the following for H.B. No. 423:
 
  By:  Bohac C.S.H.B. No. 423
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the computation of cost of goods sold for purposes of
  the franchise tax by taxable entities that transport ready-mixed
  concrete.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 171.1012, Tax Code, is amended by adding
  Subsection (r) to read as follows:
         (r)  Notwithstanding Subsection (e)(3) or (6), a taxable
  entity that transports ready-mixed concrete may subtract as cost of
  goods sold distribution and rehandling costs regardless of whether
  the taxable entity owns the ready-mixed concrete.
         SECTION 2.  This Act applies only to a report originally due
  on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2020.