TITLE: Relating to the exclusion of certain transportation services costs in determining total revenue for purposes of the franchise tax.

SUMMARY: Relating to the exclusion of certain transportation services costs in determining total revenue for purposes of the franchise tax.

FULL TEXT:
AN ACT relating to the exclusion of certain transportation services costs in determining total revenue for purposes of the franchise tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 171.1011, Tax Code, is amended by adding Subsection (v) to read as follows: (v) A taxable entity primarily engaged in the business of transporting commodities by waterways that does not subtract cost of goods sold in computing its taxable margin shall exclude from its total revenue direct costs of providing inbound and outbound transportation services by intrastate or interstate waterways to the same extent that a taxable entity that sells in the ordinary course of business real or tangible personal property would be authorized by Section 171.1012 to subtract those costs as costs of goods sold in computing its taxable margin. 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, 2014.