Relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax, the official text

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.

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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.

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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