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