By: Shine H.B. No. 2562
A BILL TO BE ENTITLED
AN ACT
relating to a sales and use tax exemption for property used in
master recordings and admissions to certain amusement services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.3101, Tax Code, is amended by adding
subsection (d) to read as follows:
(d) An admission to the championship game of the National
Football League is exempted from the taxes imposed by this chapter.
SECTION 2. Section 151.3185, Tax Code, is amended by
amending Subsections (a) and (e) and adding Subsection (h) to read
as follows:
(a) The sale, lease, or rental or storage, use, or other
consumption of the following items are exempted from the taxes
imposed by this chapter:
(1) tangible personal property that will become an
ingredient or component part of:
(A) a motion picture, [or] video, or audio master
recording, a copy of which is sold or offered for ultimate sale,
licensed, distributed, broadcast, or otherwise exhibited for
consideration
; or
(B) a broadcast by a producer of cable programs
or by a radio or television station licensed by the Federal
Communications Commission;
(2) tangible personal property that is necessary or
essential to and used or consumed in or during:
(A) the production of a motion picture, [or]
video, or audio master recording, a copy of which is sold or offered
for ultimate sale, licensed, distributed, broadcast, or otherwise
exhibited for consideration; or
(B) the production of a broadcast by or for a
cable program producer or by or for a radio or television station
licensed by the Federal Communications Commission; and
(3) except as provided by Subsection (c), services
that are necessary and essential to and used directly in a
production described by Subdivision (2)(A) or (B).
(e) The sale of a motion picture, video, or audio master
recording by the producer of the master is exempt from the taxes
imposed by this chapter.
(h) For purposes of this section, "master recording" means
the principal media on which images, sound, or a combination of
images and sound are first fixed, and from which copies are
commercially made available for sale, license, distribution,
broadcast, or exhibition of the master recording or copies for
consideration.
SECTION 3. The changes in law made by this Act apply to
master recordings sold, leased, rented, stored, used, or otherwise
consumed on or after the effective date of this Act. Master
recordings sold, leased, rented, stored, used, or otherwise
consumed before that date are governed by the law in effect on the
date of the sale, lease, rental, storage, use, or other consumption
and the former law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2017.