Texas Tax Code
§ 171.1012 — DETERMINATION OF COST OF GOODS SOLD
TX § 171.1012Title 2. STATE TAXATION · Part F. FRANCHISE TAX; CREDITS · Ch. 171. FRANCHISE TAX · Art. C. DETERMINATION OF TAXABLE MARGIN; ALLOCATION AND APPORTIONMENT
Statute text
View on source(a)In this section:
(1)"Goods" means real or tangible personal property sold in the ordinary course of business of a taxable entity.
(2)"Production" means construction, manufacture, development, mining, extraction, improvement, creation, raising, or growth. (3)(A) "Tangible personal property" means:
(i)personal property that can be seen, weighed, measured, felt, or touched or that is perceptible to the senses in any other manner;
(ii)films, sound recordings, videotapes, live and prerecorded television and radio programs, books, and other similar property embodying words, ideas, concepts, images, or sound, without regard to the means or methods of distribution or the medium in which the property is embodied, for which, as costs are incurred in producing the property, it is intended or is reasonably likely that any medium in which the property is embodied will be mass-distributed by the creator or any one or more third parties in a form that is not substantially altered; and
(iii)a computer program, as defined by Section 151.0031.
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Legislative history
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 5, eff. January 1, 2008. Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 14, eff. January 1, 2008. Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 15, eff. January 1, 2008. Acts 2013, 83rd Leg., R.S., Ch. 1232 (H.B. 500), Sec. 9, eff. January 1, 2014. Acts 2013, 83rd Leg., R.S., Ch. 1232 (H.B. 500), Sec. 10(a), eff. September 1, 2013. Acts 2017, 85th Leg., R.S., Ch. 377 (H.B. 4002), Sec. 1, eff. September 1, 2017. Acts 2025, 89th Leg., R.S., Ch. 765 (S.B. 263), Sec. 1, eff. June 20, 2025.