HB 2145

83(R) - 2013

Vote Recommendation

  • Neutral
  • Positive
  • Neutral
  • Positive
  • Neutral


Harvey Hilderbran

Bill Caption

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

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB2145, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2015. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($2,879,000) for the 2014-15 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.

Bill Analysis

Summary:  HB 2145 would change how broadcasters apportion their franchise tax rate to include receipts for broadcasting services to customers that are legally domiciled in Texas in its apportionment calculation. HB 2145 is in response to a recent Texas Supreme Court dealing with the definition of “license,”  and the change in apportionment made for broadcasters would cost the state approximately $12 million over 2018, according the Legislative Budget Board.

Analysis:  HB 2145 updates law to comply with a Texas Supreme Court ruling, and it establishes a way of apportionment that will decrease the amount of revenue Texas can take from broadcasters, making the franchise tax’s burden marginally lighter for this industry. We support HB 2145.