Cost of Goods Sold / Franchise Tax - UPDATE

In case you haven’t heard, AGC secured a final victory in June 2013 on the Texas Franchise Tax – this victory saved you lots of money!
 
The taxes you would've paid without this victory were huge – your annual franchise tax would have been 2 ½ to 3 times higher than what you’ve calculated AND the tax increase would've applied retroactively to all previously-paid franchise taxes starting with the 2008 tax year.
 
AGC initiated and led a coalition of five construction-industry groups to work on this issue, which took three years to successfully resolve. AGC was the first to identify the problem in how the Comptroller’s auditors were handling the “cost of goods sold” deduction.  This battle had its ups and downs, but finally a new administrative rule on the “cost of goods sold” was adopted by Comptroller Susan Combs in early June.
 
Please take a few minutes to review the information on this important victory. The Comptroller’s auditors will re-commence their audits shortly.  We are also providing a guide to help you prepare for a franchise tax audit if you are notified that your company will be audited.
 
Your AGC membership matters – your AGC chapter and the AGC Texas Building Branch are here to protect the interests of commercial builders in Texas.

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