| 1 | 1 | | S.B. No. 1614 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the computation of the cost of goods sold by television |
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| 6 | 6 | | and radio broadcasters for purposes of the franchise tax. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 171.1012(o), Tax Code, is amended to |
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| 9 | 9 | | read as follows: |
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| 10 | 10 | | (o) If a taxable entity, including a taxable entity with |
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| 11 | 11 | | respect to which cost of goods sold is determined pursuant to |
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| 12 | 12 | | Section 171.1014(e)(1), whose principal business activity is film |
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| 13 | 13 | | or television production, television or radio broadcasting, [or] |
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| 14 | 14 | | the distribution of tangible personal property described by |
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| 15 | 15 | | Subsection (a)(3)(A)(ii), or any combination of these activities, |
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| 16 | 16 | | elects to subtract cost of goods sold, the cost of goods sold for |
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| 17 | 17 | | the taxable entity shall be the costs described in this section in |
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| 18 | 18 | | relation to the property and include depreciation, amortization, |
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| 19 | 19 | | and other expenses directly related to the acquisition, production, |
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| 20 | 20 | | or use of the property, including expenses for the right to |
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| 21 | 21 | | broadcast or use the property. For purposes of this subsection, |
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| 22 | 22 | | "television or radio broadcasting" means television or radio |
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| 23 | 23 | | broadcasting under a television or radio broadcast license issued |
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| 24 | 24 | | by the Federal Communications Commission and regulated under 47 |
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| 25 | 25 | | C.F.R. Part 73 or 74. |
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| 26 | 26 | | SECTION 2. The amendment made by this Act is a clarification |
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| 27 | 27 | | of existing law and does not imply that existing law may be |
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| 28 | 28 | | construed as inconsistent with the law as amended by this Act. |
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| 29 | 29 | | SECTION 3. This Act takes effect immediately if it receives |
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| 30 | 30 | | a vote of two-thirds of all the members elected to each house, as |
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| 31 | 31 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 32 | 32 | | Act does not receive the vote necessary for immediate effect, this |
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| 33 | 33 | | Act takes effect September 1, 2023. |
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| 34 | 34 | | ______________________________ ______________________________ |
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| 35 | 35 | | President of the Senate Speaker of the House |
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| 36 | 36 | | I hereby certify that S.B. No. 1614 passed the Senate on |
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| 37 | 37 | | April 12, 2023, by the following vote: Yeas 31, Nays 0. |
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| 38 | 38 | | ______________________________ |
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| 39 | 39 | | Secretary of the Senate |
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| 40 | 40 | | I hereby certify that S.B. No. 1614 passed the House on |
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| 41 | 41 | | May 19, 2023, by the following vote: Yeas 131, Nays 12, two |
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| 42 | 42 | | present not voting. |
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| 43 | 43 | | ______________________________ |
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| 44 | 44 | | Chief Clerk of the House |
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| 45 | 45 | | Approved: |
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| 46 | 46 | | ______________________________ |
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| 47 | 47 | | Date |
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| 48 | 48 | | ______________________________ |
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| 49 | 49 | | Governor |
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