Texas - Guidance provided regarding COGS changes

August 2013

Overview

On July 16, 2013, the Comptroller's Office published an internal memorandum provided by the Tax Policy Division to the Audit Division to provide guidance regarding the state’s recent revisions to its cost of goods sold (COGS) regulations.  The memo explains the COGS treatment of indirect labor, service costs, property taxes, and certain benefit expenses. Taxpayers, especially those that have been audited, should review which of these costs were included in their COGS calculation to identify potential refunds and/or exposure items.

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Peter Michalowski
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