Monitoring the Session

SB 263

Perry Bill Extends A TV Franchise Tax Break To Radio

Became law

Verdict: No flags

No flagsInitial review
Sen. Charles PerryRSenate 28

Initial review · graded Oct 22, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.

Caption from analyzed text · version F.

Summary

Broadcast rights and depreciation count as cost of goods sold. Radio may pay less franchise tax.

The bill rewrites a franchise tax rule so that radio broadcasters, not just film and TV producers and TV broadcasters, can count broadcast rights, depreciation and related costs as cost of goods sold. It touches companies whose main business is TV or radio broadcasting under a federal broadcast license. Those companies can subtract more from their taxable margin and may pay less franchise tax, starting right away or September 1, 2025.

Labels

Labels: INSTANT LAW. Took effect immediately, on Jun 20, 2025. 833 of the 1,185 graded 89R laws took effect Sep 1, 2025 (derived from the bill histories, snapshot Oct 19, 2026).DO-OVER. Reworked text of a bill filed before that died: 88R SB 1614 (Vetoed). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.

Receipt

The receipt

89R-SB263 · 2024-11-12

SOLD BY

Sen. Charles PerryRSenate 28

ITEM

relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.

WHAT IT DOES

Broadcast rights and depreciation count as cost of goods sold. Radio may pay less franchise tax.

The bill rewrites a franchise tax rule so that radio broadcasters, not just film and TV producers and TV broadcasters, can count broadcast rights, depreciation and related costs as cost of goods sold. It touches companies whose main business is TV or radio broadcasting under a federal broadcast license. Those companies can subtract more from their taxable margin and may pay less franchise tax, starting right away or September 1, 2025.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · March 4, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Finance
  5. Scheduled for public hearing on . . .
  6. Considered in public hearing
  7. Vote taken in committee
  8. Reported favorably w/o amendments
  9. Recommended for local & uncontested calendar
  10. Committee report printed and distributed
  11. Placed on intent calendar
  12. Rules suspended-Constitutional 60-Day
  13. Rules suspended-Regular order of business
  14. Read 2nd time & passed to engrossment
  15. Vote recorded in Journal
  16. Three day rule suspended
  17. Record vote
  18. Read 3rd time
  19. Passed
  20. Record vote
  21. Reported engrossed
  22. Received from the Senate
  23. Read first time
  24. Referred to Ways & Means
  25. Scheduled for public hearing on . . .
  26. Considered in public hearing
  27. Testimony taken/registration(s) recorded in committee
  28. Left pending in committee
  29. Considered in formal meeting
  30. Reported favorably w/o amendment(s)
  31. Comte report filed with Committee Coordinator
  32. Committee report distributed
  33. Committee report sent to Calendars
  34. Considered in Calendars
  35. Placed on General State Calendar
  36. Read 2nd time
  37. Passed to 3rd reading
  38. Record vote RV#3282
  39. Statement(s) of vote recorded in Journal
  40. Read 3rd time
  41. Passed
  42. Record vote RV#3357
  43. House passage reported
  44. Reported enrolled
  45. Signed in the Senate
  46. Signed in the House
  47. Sent to the Governor
  48. Signed by the Governor
  49. Effective immediately
FILED UNDER

CORPORATE WELFARE

THE TEXT

…“or use of the property, including expenses for the right to”…

Bill text, enrolled version (F)

The bill lets licensed TV and radio broadcasters count broadcast-rights and related costs as cost of goods sold, which lowers franchise tax for that one industry.

SIGNED FOR BY

House · 132 yea · 7 nay

Senate · 30 yea · 0 nay

Sources

House: Final passage · May 23, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · Mar 13, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Charles Perry

Donors

Texans for Lawsuit Reform PAC$60KRyan Texas PAC$35KFort Stockton Holdings LP$25K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 1, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$60,000.00

Texans for Lawsuit Reform PAC

$60,000.00

Cash
$60,000.00
Paid by others
$0.00
Total
$60,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Nov 13, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100983698, 101007598, 101030579, 101072377.

Ryan Texas PAC$35,000.00

Ryan Texas PAC

$35,000.00

Cash
$35,000.00
Paid by others
$0.00
Total
$35,000.00

Also funds 25 other sitting lawmakers.

Derived recipient stock · Sep 23, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 13, 2024 to Mar 12, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100983698, 101057700.

Fort Stockton Holdings LP$25,000.00

Fort Stockton Holdings LP

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Nov 23, 2024. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Nov 23, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100983698.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$60,000.00

Cash
$60,000.00
Paid by others
$0.00
Total
$60,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Nov 13, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100983698, 101007598, 101030579, 101072377.

×

Ryan Texas PAC

$35,000.00

Cash
$35,000.00
Paid by others
$0.00
Total
$35,000.00

Also funds 25 other sitting lawmakers.

Derived recipient stock · Sep 23, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 13, 2024 to Mar 12, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100983698, 101057700.

×

Fort Stockton Holdings LP

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Nov 23, 2024. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Nov 23, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100983698.

Votes5

House May 23, 2025

Yea
132
Nay
7
Present, not voting
1
Absent
4
Excused
6
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3357

SB 263 was passed by (Record 3357): 132 Yeas, 7 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 132 (published)
  • Nay: 7 (published)
  • Present, not voting: 1 (published)
  • Absent: 4 (derived from named list)
  • Excused: 6 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 22, 2025

Yea
130
Nay
12
Present, not voting
2
Absent
2
Excused
4
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3282

SB 263 was passed to third reading by (Record 3282): 130 Yeas, 12 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 130 (published)
  • Nay: 12 (published)
  • Present, not voting: 2 (published)
  • Absent: 2 (derived from named list)
  • Excused: 4 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate Mar 13, 2025

Yea
30
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

The bill was read third time and was passed by the following vote: Yeas 30, Nays 0. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

  • Yea: 30 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Mar 13, 2025

Yea
30
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

Senator Perry moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that SB 263 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 30, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 30 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Mar 13, 2025

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

The bill was read second time and was passed to engrossment by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

  • Yea: Not printed
  • Nay: Not printed
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Witnesses3
For
2
Against
0
On
1
Names

For

  • Texas Association of Broadcasters1 registration
  • Texas Taxpayers and Research Association - (TTARA)1 registration

On

  • Comptroller of Public Accounts1 registration
Sources

3 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · March 4, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version F by claude-opus-5-5, Oct 22, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R SB 1614

by Sen. Perry, same lead author · Vetoed · reworked

Introduced text

Last action, Jun 18, 2023: Vetoed by the Governor

Relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.

Caption, 88R bill history

Sources

Texas Senate · Filed Nov 12, 2024

06/20/2025 E Effective immediately

Texas Legislature Online · Introduced · Senate Committee Report · Engrossed · House Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

Sponsors
Angie Chen ButtonRHouse 112

House committee · Ways & Means · Committee vote 11 aye, 0 nay, 2 absent · Out of committee

Senate committee · Finance · Committee vote 15 aye, 0 nay · Out of committee

Subjects

Taxation--Franchise

RADIO

TELEVISION

Text

The text as introduced · 293 words

89R869 SRA-F

By: Perry
S.B. No. 263

A BILL TO BE ENTITLED

AN ACT

relating to the computation of the cost of goods sold by television

and radio broadcasters for purposes of the franchise tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 171.1012(o), Tax Code, is amended to

read as follows:

(o) If a taxable entity, including a taxable entity with

respect to which cost of goods sold is determined pursuant to

Section 171.1014(e)(1), whose principal business activity is film

or television production , television or radio broadcasting , [ or ]

the distribution of tangible personal property described by

Subsection (a)(3)(A)(ii), or any combination of these activities,

elects to subtract cost of goods sold, the cost of goods sold for

the taxable entity shall be the costs described in this section in

relation to the property and include depreciation, amortization,

and other expenses directly related to the acquisition, production,

or use of the property, including expenses for the right to

broadcast or use the property. For purposes of this subsection,

"television or radio broadcasting" means television or radio

broadcasting under a television or radio broadcast license issued

by the Federal Communications Commission and regulated under 47

C.F.R. Part 73 or 74.

SECTION 2. 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 3. 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, 2025.