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A BILL TO BE ENTITLED
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AN ACT
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relating to a sales and use tax exemption for property used in the |
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production of motion picture, video or audio master recordings. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.3185, Tax Code, is amended by |
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amending Subsections (a) and (e) and adding Subsection (h) to read |
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as follows: |
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(a) The sale, lease, or rental or storage, use, or other |
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consumption of the following items are exempted from the taxes |
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imposed by this chapter: |
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(1) tangible personal property that will become an |
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ingredient or component part of: |
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(A) a motion picture, [or] video, or audio master |
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recording, a copy of which is sold or offered for ultimate sale, |
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licensed, distributed, broadcast, or otherwise exhibited for |
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consideration; or |
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(B) a broadcast by a producer of cable programs |
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or by a radio or television station licensed by the Federal |
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Communications Commission; |
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(2) tangible personal property that is necessary or |
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essential to and used or consumed in or during: |
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(A) the production of a motion picture, [or] |
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video, or audio master recording, a copy of which is sold or offered |
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for ultimate sale, licensed, distributed, broadcast, or otherwise |
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exhibited for consideration; or |
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(B) the production of a broadcast by or for a |
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cable program producer or by or for a radio or television station |
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licensed by the Federal Communications Commission; and |
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(3) except as provided by Subsection (c), services |
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that are necessary and essential to and used directly in a |
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production described by Subdivision (2)(A) or (B). |
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(e) The sale of a motion picture, video, or audio master |
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recording by the producer of the master is exempt from the taxes |
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imposed by this chapter. |
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(h) For purposes of this section, "master recording" means |
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the principal media on which images, sound, or a combination of |
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images and sound are first fixed, and from which copies are |
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commercially made available for sale, license, distribution, |
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broadcast, or exhibition of the master recording or copies for |
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consideration. |
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SECTION 2. The changes in law made by this Act apply to |
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master recordings sold, leased, rented, stored, used, or otherwise |
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consumed on or after the effective date of this Act. Master |
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recordings sold, leased, rented, stored, used, or otherwise |
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consumed before that date are governed by the law in effect on the |
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date of the sale, lease, rental, storage, use, or other consumption |
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and the former law is continued in effect for that purpose. |
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SECTION |
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3. This Act takes effect September 1, 2017. |