SB263 - Relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.

      S.B. No. 263         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.   For purposes of this subsection,   "television or radio broadcasting" means television or radio   broadcasting under a television or radio broadcast license issued   by the Federal Communications Commission and regulated under 47   C.F.R. Part 73 or 74.          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, 2025.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 263 passed the Senate on   March 13, 2025, by the following vote:  Yeas 30, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 263 passed the House on   May 23, 2025, by the following vote:  Yeas 132, Nays 7, one   present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor