By: Perry S.B. No. 263
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. For purposes of this subsection,
"television or radio broadcasting" means television or radio
broadcasting under a television or radio broadcast license issued
by the Federal Communications Commission and regulated under 47
C.F.R. Part 73 or 74.
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, 2025.