Texas House Bill HB2145

Texas 2013 - 83rd Regular

Caption

Relating to apportionment of certain receipts of a broadcaster under the franchise tax.

Impact

The implementation of HB 2145 is expected to affect how taxable entities classified as broadcasters handle their receipts for taxation purposes. By limiting the inclusion of licensing income to that sourced from Texas customers, the bill could create a more straightforward method for calculating tax liabilities. This change may also help to minimize disputes regarding taxable income from out-of-state sources, thereby simplifying compliance for local broadcasters.

Summary

House Bill 2145 focuses on the apportionment of certain receipts from broadcasters under the Texas franchise tax system. The bill introduces an amendment to the Tax Code that specifies how broadcasters calculate their apportionment factor based on their licensing income from film programming. The change stipulates that such receipts should only be included in the apportionment numerator if the broadcaster's customer has a legal domicile in Texas. This aims to ensure that Texas-based broadcasters are accurately taxed based on their revenues generated from activities within the state.

Contention

Although the primary intent of the bill appears to be clarifying the tax obligations for broadcasters, it may also give rise to discussions about fairness in taxation, especially concerning out-of-state corporations. Stakeholders in the broadcasting industry may have differing views on how this could impact competition and the overall financial landscape for media companies operating in Texas. Additionally, implications for state revenue generation could be a point of contention as the bill modifies how income is reported.