Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB4002 by Bonnen, Dennis (Relating to the definition of "production" in the cost of goods sold deduction for the franchise tax.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend Chapter 171 of the Tax Code, regarding the franchise tax, by clarifying the definition of "production" for determining the cost of goods sold deduction in calculating margin. The bill would substitute "means" for "includes" and strike the word "installation" from the definition of production.
The proposed clarification would not impact the calculation of the franchise tax and therefore would have no revenue implications.
The bill would take effect September 1, 2017.
Local Government Impact
No fiscal implication to units of local government is anticipated.