| 1 | 1 | | 83R25423 E |
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| 2 | 2 | | By: Hilderbran H.B. No. 2145 |
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| 3 | 3 | | Substitute the following for H.B. No. 2145: |
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| 4 | 4 | | By: Hilderbran C.S.H.B. No. 2145 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to apportionment of certain receipts of a broadcaster |
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| 10 | 10 | | under the franchise tax. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 171.106, Tax Code, is amended by adding |
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| 13 | 13 | | Subsection (g) to read as follows: |
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| 14 | 14 | | (g) A taxable entity that is a broadcaster shall include in |
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| 15 | 15 | | the numerator of the broadcaster's apportionment factor receipts |
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| 16 | 16 | | arising from a broadcast or other distribution of film programming |
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| 17 | 17 | | by any means only if the legal domicile of the broadcaster's |
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| 18 | 18 | | customer is in this state. This subsection applies only to receipts |
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| 19 | 19 | | that are licensing income from distributing film programming. In |
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| 20 | 20 | | this subsection: |
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| 21 | 21 | | (1) "Broadcaster" means a taxable entity, not |
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| 22 | 22 | | including a cable service provider or a direct broadcast satellite |
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| 23 | 23 | | service, that is a: |
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| 24 | 24 | | (A) television station licensed by the Federal |
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| 25 | 25 | | Communications Commission; |
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| 26 | 26 | | (B) television broadcast network; |
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| 27 | 27 | | (C) cable television network; or |
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| 28 | 28 | | (D) television distribution company. |
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| 29 | 29 | | (2) "Customer" means a person, including a licensee, |
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| 30 | 30 | | that has a direct connection or contractual relationship with a |
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| 31 | 31 | | broadcaster under which the broadcaster derives revenue. |
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| 32 | 32 | | (3) "Film programming" means all or part of a live or |
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| 33 | 33 | | recorded performance, event, or production intended to be |
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| 34 | 34 | | distributed for visual and auditory perception by an audience. |
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| 35 | 35 | | (4) "Programming" includes news, entertainment, |
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| 36 | 36 | | sporting events, plays, stories, or other literary, commercial, |
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| 37 | 37 | | educational, or artistic works. |
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| 38 | 38 | | SECTION 2. This Act applies only to a report originally due |
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| 39 | 39 | | on or after the effective date of this Act. |
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| 40 | 40 | | SECTION 3. This Act takes effect January 1, 2015. |
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