2025 · Regular session · Senate bill
SB263
SB263 expressly includes qualifying television and radio broadcasters in a franchise-tax rule for deducting the cost of goods sold.
Official caption: Relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.
Official report lists Senate author(s): Perry. This does not identify sponsors or amendment drafters.
Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.
Bill highlights
Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.
- SB263 expressly includes qualifying television and radio broadcasters in a franchise-tax rule for deducting the cost of goods sold.
- The rule applies when a taxable entity with the specified principal business activity elects to subtract cost of goods sold.
- The law expressly calls this a clarification of existing law and says the prior law should not be construed inconsistently with it.
What does it do?
SB263 expressly includes qualifying television and radio broadcasters in a franchise-tax rule for deducting the cost of goods sold. It was signed and took effect June 20, 2025. It defines the covered broadcasting as activity under an FCC television or radio broadcast license regulated by 47 C.F.R. Part 73 or 74—not every business that distributes online audio or video. Final law; Official history.
The rule applies when a taxable entity with the specified principal business activity elects to subtract cost of goods sold. Covered costs include depreciation, amortization and other expenses directly tied to acquiring, producing or using the relevant property, including broadcast/use rights. The provision also covers the member-level calculation for an entity in a combined tax-reporting group. It does not make every operating expense deductible.
The law expressly calls this a clarification of existing law and says the prior law should not be construed inconsistently with it. It does not set a new tax rate, create a blanket tax exemption or promise a refund. The fiscal note says it codifies existing administrative practice. Sections 1–2.
What changed along the way?
All five posted versions have the same operative provisions. The official index lists no amendments, and both committees reported the bill without amendments; no rejected or changed floor proposal is being presented as law. The certified chamber votes met the two-thirds requirement for immediate effect, rather than the fallback September 1 date. Text versions; Amendment index; Certified votes and effective-date clause.
For the full amendment record, open the official amendment index.
Official bill versions
Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.
Who could benefit—and who could bear the costs?
The sole posted fiscal note, dated March 4, 2025, anticipates no state or local fiscal impact because the bill codifies current administrative practice. This is a forecast based on that premise, not evidence of a new tax cut or quantified revenue loss. Fiscal note.
Qualifying broadcasters and their tax preparers gain clearer statutory language for the existing deduction. Any individual taxpayer’s result still depends on eligibility, its chosen margin calculation and qualifying costs. The records do not quantify compliance savings or establish an entitlement to a particular refund. Enacted eligibility and cost rule.
Official sources
- Bill history and latest recorded action
- Bill versions, analyses and fiscal notes
- Action history and votes
- Amendment index
Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.
