88R13370 SRA-F
 
  By: Perry S.B. No. 1614
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the computation of the cost of goods sold by television
  and radio broadcasters for purposes of the franchise tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 171.1012(o), Tax Code, is amended to
  read as follows:
         (o)  If a taxable entity, including a taxable entity with
  respect to which cost of goods sold is determined pursuant to
  Section 171.1014(e)(1), whose principal business activity is film
  or television production, television or radio broadcasting, or the
  distribution of tangible personal property described by Subsection
  (a)(3)(A)(ii), or any combination of these activities, elects to
  subtract cost of goods sold, the cost of goods sold for the taxable
  entity shall be the costs described in this section in relation to
  the property and include depreciation, amortization, and other
  expenses directly related to the acquisition, production, or use of
  the property, including expenses for the right to broadcast or use
  the property.
         SECTION 2.  The amendment made by this Act is a clarification
  of existing law and does not imply that existing law may be
  construed as inconsistent with the law as amended by this Act.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.