Bill Text: TX HB3086 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to the sales and use tax exemption for property used in the production of motion picture, video, or audio recordings and broadcasts.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2019-05-31 - Effective immediately [HB3086 Detail]

Download: Texas-2019-HB3086-Enrolled.html

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H.B. No. 3086

AN ACT
relating to the sales and use tax exemption for property used in the
production of motion picture, video, or audio recordings and
broadcasts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 151.3185, Tax Code, is
amended to read as follows:
Sec. 151.3185. PROPERTY USED IN THE PRODUCTION OF MOTION
PICTURE, [PICTURES OR] VIDEO, OR AUDIO RECORDINGS AND BROADCASTS.
SECTION 2. Section 151.3185, Tax Code, is amended by
amending Subsections (a) and (e) and adding Subsection (h) to read
as follows:
(a) The sale, lease, or rental or storage, use, or other
consumption of the following items are exempted from the taxes
imposed by this chapter:
(1) tangible personal property that will become an
ingredient or component part of:
(A) a motion picture, [or] video, or audio master
recording, a copy of which is sold or offered for ultimate sale,
licensed, distributed, broadcast, or otherwise exhibited for
consideration; or
(B) a broadcast by a producer of cable programs
or by a radio or television station licensed by the Federal
Communications Commission;
(2) tangible personal property that is necessary or
essential to and used or consumed in or during:
(A) the production of a motion picture, [or]
video, or audio master recording, a copy of which is sold or offered
for ultimate sale, licensed, distributed, broadcast, or otherwise
exhibited for consideration; or
(B) the production of a broadcast by or for a
cable program producer or by or for a radio or television station
licensed by the Federal Communications Commission; and
(3) except as provided by Subsection (c), services
that are necessary and essential to and used directly in a
production described by Subdivision (2)(A) or (B).
(e) The sale of a motion picture, video, or audio master
recording by the producer of the master recording is exempt from the
taxes imposed by this chapter.
(h) In this section, "master recording" means the principal
media on which images, sound, or a combination of images and sound
are first fixed and from which copies are commercially made
available for sale, license, distribution, broadcast, or
exhibition for consideration.
SECTION 3. 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 4. 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, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3086 was passed by the House on April
10, 2019, by the following vote: Yeas 142, Nays 4, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3086 was passed by the Senate on May
15, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor