Sales tax clarification effort underway

TAB’s effort to bring parity to the taxability of digital transmission equipment is officially underway now that legislation has been filed in both chambers of the Legislature. If successful, the measure will clarify that such equipment is exempt from sales tax whether it’s purchased by a radio station or a TV station. While that was the state’s official policy for years, a 2010 administrative ruling suspended the exemption for radio stations.

Rep. Kyle Kacal, R-Bryan, authored HB 2570.  Sen. Kel Seliger, R-Amarillo, filed the Senate companion, SB 1030.

The measures must be approved by key committees and clear both chambers before consideration by Gov. Greg Abbott. TAB will alert radio stations when it’s appropriate to weigh in with their lawmakers.

Issue Overview/Talking Points

Questions?  Contact TAB’s Oscar Rodriguez or call (512) 322-9944.