Texas 2023 - 88th Regular

Texas House Bill HB4384 Latest Draft

Bill / Introduced Version Filed 03/09/2023

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                            88R13370 SRA-F
 By: Price H.B. No. 4384


 A BILL TO BE ENTITLED
 AN ACT
 relating to the computation of the cost of goods sold by television
 and radio broadcasters for purposes of the franchise tax.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 171.1012(o), Tax Code, is amended to
 read as follows:
 (o)  If a taxable entity, including a taxable entity with
 respect to which cost of goods sold is determined pursuant to
 Section 171.1014(e)(1), whose principal business activity is film
 or television production, television or radio broadcasting, or the
 distribution of tangible personal property described by Subsection
 (a)(3)(A)(ii), or any combination of these activities, elects to
 subtract cost of goods sold, the cost of goods sold for the taxable
 entity shall be the costs described in this section in relation to
 the property and include depreciation, amortization, and other
 expenses directly related to the acquisition, production, or use of
 the property, including expenses for the right to broadcast or use
 the property.
 SECTION 2.  The amendment made by this Act is a clarification
 of existing law and does not imply that existing law may be
 construed as inconsistent with the law as amended by this Act.
 SECTION 3.  This Act takes effect immediately if it receives
 a vote of two-thirds of all the members elected to each house, as
 provided by Section 39, Article III, Texas Constitution.  If this
 Act does not receive the vote necessary for immediate effect, this
 Act takes effect September 1, 2023.