Texas Senate Bill SB1783

Texas 2015 - 84th Regular

Caption

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

Impact

This bill is poised to impact the way broadcasters report their income for tax purposes, potentially leading to changes in revenue allocation among state entities. By refining the definition of 'receipts' to include only those linked to Texas customers, it simplifies the apportionment process. The measure is likely to streamline compliance for broadcasters, reducing the ambiguity that can arise from multi-state operations where income originates from a broader customer base.

Summary

SB1783 introduces amendments to the Texas Tax Code regarding the apportionment of receipts for broadcasters under the franchise tax. Specifically, it requires broadcasters to include only receipts generated from customers whose legal domicile is in Texas when calculating their apportionment factor. This aims to clarify tax obligations for broadcasters operating within the state and ensure that tax revenues are accurately accounted for in relation to the state's tax base.

Contention

While SB1783 is primarily aimed at clarifying tax responsibilities, it could be met with varying perspectives. For proponents, the bill offers a logical approach to apportionment that aligns revenue generation with state tax laws. However, opponents may argue that such amendments could unintentionally disadvantage broadcasters with larger out-of-state audiences, potentially affecting their overall revenue and operational capacity. The balance between fair taxation and fostering a supportive environment for broadcasters remains a pivotal consideration as the bill progresses.