BILL ANALYSIS |
C.S.H.B. 2896 |
By: Parker |
Ways & Means |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties observe that current law governing the franchise tax does not adequately specify how to properly characterize fees paid by cable system operators to motion picture and television producers for video content provided by such producers. C.S.H.B. 2896 seeks to clarify the law relating to the franchise tax.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 2896 amends the Tax Code to require a taxable entity that is a broadcaster to include in the numerator of the broadcaster's apportionment factor, for purposes of determining the entity's taxable margin under the franchise tax, receipts arising from licensing income from broadcasting or otherwise distributing film programming by any means only if the legal domicile of the broadcaster's customer is in Texas. The bill defines "broadcaster" as a taxable entity, excluding a cable service provider or a direct broadcast satellite service, that is a television station licensed by the Federal Communications Commission, television broadcast network, cable television network, or television distribution company and defines "customer" as a person, including a licensee, that has a direct connection or contractual relationship with a broadcaster under which the broadcaster derives revenue.
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EFFECTIVE DATE
January 1, 2016.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 2896 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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