LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 4, 2023 TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1614 by Perry (relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.), Committee Report 1st House, Substituted No fiscal implication to the State is anticipated. The bill would amend Section 171.1012(o) of the Tax Code (franchise tax) to clarify the list of taxable entities eligible to compute cost of goods sold includes those whose principal business activity is television and radio broadcasting. Cost of goods sold under this paragraph includes 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. The bill would state that for the purpose of this subsection, television or radio broadcasting means television or radio broadcasting under a television or radio broadcast license issued by the Federal Communication Commission and regulated under 47 C.F.R. Part 73 or 74.According to the Comptroller, the bill would codify current administrative practice and thus have no fiscal implications.The bill would take effect immediately upon enactment, assuming it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2023. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 4, 2023
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1614 by Perry (relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.), Committee Report 1st House, Substituted
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1614 by Perry (relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.), Committee Report 1st House, Substituted
Honorable Joan Huffman, Chair, Senate Committee on Finance
Honorable Joan Huffman, Chair, Senate Committee on Finance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1614 by Perry (relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.), Committee Report 1st House, Substituted
SB1614 by Perry (relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.), Committee Report 1st House, Substituted
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Section 171.1012(o) of the Tax Code (franchise tax) to clarify the list of taxable entities eligible to compute cost of goods sold includes those whose principal business activity is television and radio broadcasting. Cost of goods sold under this paragraph includes 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. The bill would state that for the purpose of this subsection, television or radio broadcasting means television or radio broadcasting under a television or radio broadcast license issued by the Federal Communication Commission and regulated under 47 C.F.R. Part 73 or 74.According to the Comptroller, the bill would codify current administrative practice and thus have no fiscal implications.The bill would take effect immediately upon enactment, assuming it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2023.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD