HB 1289

83(R) - 2013

Vote Recommendation

  • Neutral
  • Positive
  • Neutral
  • Positive
  • Neutral


Harvey Hilderbran

Bill Caption

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

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB1289, As Introduced: an impact of $0 through the biennium ending August 31, 2015. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($4,688,000) for the 2014-15 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.

Bill Analysis

Summary: Marine transportation operators that deliver goods are unable to deduct the cost of transporting those goods from their taxable margin to reduce their franchise tax liability. Other entities that transport their own commodities rather than contract with transportation operators, however, may deduct these transportation expenses. As a result, marine operators can’t make deductions similar companies can. HB 1289 would allow marine transportation operators to deduct these costs for purposes of the franchise tax.

Analysis: HB 1289 reduces the tax liabilities of marine transportation operators under the franchise tax. This promotes their property rights by allowing these operators to keep more resources, and it limits the amount government can take from these entities through the franchise tax. This also makes marine transportation operators subject to the same tax burdens as other types of transportation operators. Support HB 1289.