The bill would amend Section 171.1012(o) of the Tax Code (franchise tax) to clarify the list of taxable entities eligible to compute cost of goods sold includes those whose principal business activity is television and radio broadcasting. Cost of goods sold under this paragraph includes 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.
The bill would define “television or radio broadcasting” as television or radio broadcasting under a television or radio broadcast license issued by the Federal Communications Commission.
The bill would codify current administrative practice and thus have no fiscal implications.
The bill would take effect immediately upon enactment, assuming it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2025.
No fiscal implication to units of local government is anticipated.