TITLE: Relating to the definition of production used in determining the cost of goods sold for franchise tax purposes.

SUMMARY: Relating to the definition of production used in determining the cost of goods sold for franchise tax purposes.

FULL TEXT:
AN ACT relating to the definition of production used in determining the cost of goods sold for franchise tax purposes. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 171.1012(a)(2), Tax Code, is amended to read as follows: (2) "Production" means [includes] construction, [installation] manufacture, development, mining, extraction, improvement, creation, raising, or growth. SECTION 2. The amendment made by this Act to Section 171.1012, Tax Code, is a clarification of existing law and does not imply that Section 171.1012, Tax Code, before the amendment made by this Act may be construed as inconsistent with Section 171.1012, Tax Code, as amended by this Act. SECTION 3. This Act takes effect September 1, 2017.