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Relating to the sales and use tax exemption for property used in the
production of motion picture, video, or audio recordings and
No fiscal implication to the State is anticipated.
HB 3086 would close a loophole in the sales tax exemption for property used in the production of films, video, audio recordings and broadcasts. Some companies currently make use of the tax exemption even for films or audio recordings that are only used internally. This bill would add the language "exhibited for consideration" to the bill in order to require the film or audio to be shown to the public in order to qualify for the exemption.
Texas Action supports HB 3086 for promoting the principles of limited government and free markets. While we oppose this tax exemption and would like to see it repealed as a whole due to its undue influences in the free market, this bill at least fixes a major loophole with the exemption. The Legislature should pursue repealing the exemption as a whole in order to greater promote free market competition in the state.