TITLE: Relating to apportionment of certain receipts of a broadcaster under the franchise tax.

SUMMARY: Relating to apportionment of certain receipts of a broadcaster under the franchise tax.

FULL TEXT:
AN ACT relating to apportionment of certain receipts of a broadcaster under the franchise tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 171.106, Tax Code, is amended by adding Subsection (h) to read as follows: (h) A taxable entity that is a broadcaster shall include in the numerator of the broadcaster's apportionment factor receipts arising from licensing income from broadcasting or otherwise distributing film programming by any means only if the legal domicile of the broadcaster's customer is in this state. In this subsection: (1) "Broadcaster" means a taxable entity, not including a cable service provider or a direct broadcast satellite service, that is a: (A) television station licensed by the Federal Communications Commission; (B) television broadcast network; (C) cable television network; or (D) television distribution company. (2) "Customer" means a person, including a licensee, that has a direct connection or contractual relationship with a broadcaster under which the broadcaster derives revenue. (3) "Film programming" means all or part of a live or recorded performance, event, or production intended to be distributed for visual and auditory perception by an audience. (4) "Programming" includes news, entertainment, sporting events, plays, stories, or other literary, commercial, educational, or artistic works. SECTION 2. This Act applies only to a report originally due on or after the effective date of this Act. SECTION 3. This Act takes effect January 1, 2018.