Texas – Anticipated plans to modify treatment for commercial printing companies
State and Local Tax
In response to the Commercial Printer Roundtable that was held last Fall, on May 16, 2014, a Tax Policy Manager for the Texas Comptroller of Public Accounts announced plans to revise policy and amend the administrative rule governing the Texas Franchise Tax cost of goods sold (COGS) deduction as it relates to the commercial printing industry. Pursuant to the revised policy, commercial printers would be considered to own and produce goods when they print and sell tangible personal property to their customers. As a result, commercial printers may take a COGS deduction for the qualifying costs of their printing activities.