| 2 | | - | |
|---|
| 3 | | - | |
|---|
| 2 | + | (In the Senate - Filed November 12, 2024; |
|---|
| 3 | + | February 3, 2025, read first time and referred to Committee on |
|---|
| 4 | + | Finance; March 5, 2025, reported favorably by the following vote: |
|---|
| 5 | + | Yeas 15, Nays 0; March 5, 2025, sent to printer.) |
|---|
| 6 | + | Click here to see the committee vote |
|---|
| 4 | 7 | | |
|---|
| 5 | 8 | | |
|---|
| 6 | 9 | | A BILL TO BE ENTITLED |
|---|
| 7 | 10 | | AN ACT |
|---|
| 8 | 11 | | relating to the computation of the cost of goods sold by television |
|---|
| 9 | 12 | | and radio broadcasters for purposes of the franchise tax. |
|---|
| 10 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 11 | 14 | | SECTION 1. Section 171.1012(o), Tax Code, is amended to |
|---|
| 12 | 15 | | read as follows: |
|---|
| 13 | 16 | | (o) If a taxable entity, including a taxable entity with |
|---|
| 14 | 17 | | respect to which cost of goods sold is determined pursuant to |
|---|
| 15 | 18 | | Section 171.1014(e)(1), whose principal business activity is film |
|---|
| 16 | 19 | | or television production, television or radio broadcasting, [or] |
|---|
| 17 | 20 | | the distribution of tangible personal property described by |
|---|
| 18 | 21 | | Subsection (a)(3)(A)(ii), or any combination of these activities, |
|---|
| 19 | 22 | | elects to subtract cost of goods sold, the cost of goods sold for |
|---|
| 20 | 23 | | the taxable entity shall be the costs described in this section in |
|---|
| 21 | 24 | | relation to the property and include depreciation, amortization, |
|---|
| 22 | 25 | | and other expenses directly related to the acquisition, production, |
|---|
| 23 | 26 | | or use of the property, including expenses for the right to |
|---|
| 24 | 27 | | broadcast or use the property. For purposes of this subsection, |
|---|
| 25 | 28 | | "television or radio broadcasting" means television or radio |
|---|
| 26 | 29 | | broadcasting under a television or radio broadcast license issued |
|---|
| 27 | 30 | | by the Federal Communications Commission and regulated under 47 |
|---|
| 28 | 31 | | C.F.R. Part 73 or 74. |
|---|
| 29 | 32 | | SECTION 2. The amendment made by this Act is a clarification |
|---|
| 30 | 33 | | of existing law and does not imply that existing law may be |
|---|
| 31 | 34 | | construed as inconsistent with the law as amended by this Act. |
|---|
| 32 | 35 | | SECTION 3. This Act takes effect immediately if it receives |
|---|
| 33 | 36 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 34 | 37 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 35 | 38 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 36 | 39 | | Act takes effect September 1, 2025. |
|---|