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A BILL TO BE ENTITLED
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AN ACT
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relating to the computation of costs of goods sold for purposes of |
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the franchise tax by certain taxable entities engaged in film or |
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television exhibition. |
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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, exhibition, or 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, |
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exhibition, or use of the property, including expenses for the |
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right to broadcast, exhibit, or use the property. |
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SECTION 2. This Act is a clarification of existing law and |
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does not imply that existing law may be construed as inconsistent |
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with the law as amended by this Act. |
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SECTION 3. This Act takes effect September 1, 2013. |