According to the Legislative Budget Board (LBB) Fiscal Note, SB 263 is not expected to have any fiscal impact on the state budget or local government revenues. The bill clarifies the computation of the cost of goods sold (COGS) for television and radio broadcasters under the franchise tax, ensuring that eligible entities can deduct depreciation, amortization, and expenses related to the acquisition, production, and use of broadcast property, including the cost of broadcast rights.

The Comptroller of Public Accounts has indicated that this bill effectively codifies current administrative practice. Since the tax treatment of these expenses is already in place, the bill does not introduce new tax deductions or exemptions that would reduce state revenue. Therefore, the bill does not alter the amount of franchise tax revenue collected by the state.

Additionally, no fiscal impact on local governments is anticipated. Because the franchise tax is a state-level tax, its clarification does not affect local tax revenues or require changes to local government budgets.

SB 263 seeks to clarify existing law regarding the computation of the cost of goods sold (COGS) for franchise tax purposes for both television and radio broadcasters. The bill ensures that FCC-licensed, free, over-the-air radio broadcasters are explicitly included under provisions that already apply to television broadcasters. This adjustment promotes consistency and fairness in tax treatment across the broadcasting industry, reinforcing Texas's commitment to a stable and predictable tax environment.

From a liberty-focused policy perspective, SB 263 aligns with key principles of free enterprise and limited government. By confirming the applicability of existing tax provisions, the bill avoids unnecessary regulatory uncertainty and reduces the potential for inconsistent tax treatment of broadcasters.

The bill does not expand government power, impose new regulatory burdens, or alter tax rates. Instead, it reinforces tax law clarity for businesses operating in Texas. As such, Texas Policy Research recommends a YES vote for state lawmakers on SB 263.