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A BILL TO BE ENTITLED
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AN ACT
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relating to the sales and use tax exemption for property used in the |
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production of motion picture, video, or audio recordings and |
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broadcasts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 151.3185, Tax Code, is |
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amended to read as follows: |
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Sec. 151.3185. PROPERTY USED IN THE PRODUCTION OF MOTION |
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PICTURE, [PICTURES OR] VIDEO, OR AUDIO RECORDINGS AND BROADCASTS. |
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SECTION 2. 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 recording is exempt from the |
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taxes imposed by this chapter. |
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(h) In this section, "master recording" means the principal |
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media on which images, sound, or a combination of images and sound |
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are first fixed and from which copies are commercially made |
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available for sale, license, distribution, broadcast, or |
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exhibition for consideration. |
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SECTION 3. 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 4. 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, 2019. |
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* * * * * |