| 1 | 1 | | 88R13370 SRA-F |
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| 2 | 2 | | By: Price H.B. No. 4384 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the computation of the cost of goods sold by television |
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| 8 | 8 | | and radio broadcasters for purposes of the franchise tax. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 171.1012(o), Tax Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (o) If a taxable entity, including a taxable entity with |
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| 13 | 13 | | respect to which cost of goods sold is determined pursuant to |
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| 14 | 14 | | Section 171.1014(e)(1), whose principal business activity is film |
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| 15 | 15 | | or television production, television or radio broadcasting, or the |
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| 16 | 16 | | distribution of tangible personal property described by Subsection |
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| 17 | 17 | | (a)(3)(A)(ii), or any combination of these activities, elects to |
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| 18 | 18 | | subtract cost of goods sold, the cost of goods sold for the taxable |
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| 19 | 19 | | entity shall be the costs described in this section in relation to |
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| 20 | 20 | | the property and include depreciation, amortization, and other |
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| 21 | 21 | | expenses directly related to the acquisition, production, or use of |
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| 22 | 22 | | the property, including expenses for the right to broadcast or use |
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| 23 | 23 | | the property. |
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| 24 | 24 | | SECTION 2. The amendment made by this Act is a clarification |
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| 25 | 25 | | of existing law and does not imply that existing law may be |
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| 26 | 26 | | construed as inconsistent with the law as amended by this Act. |
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| 27 | 27 | | SECTION 3. This Act takes effect immediately if it receives |
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| 28 | 28 | | a vote of two-thirds of all the members elected to each house, as |
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| 29 | 29 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 30 | 30 | | Act does not receive the vote necessary for immediate effect, this |
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| 31 | 31 | | Act takes effect September 1, 2023. |
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