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House Bill 1133 |
House Author: Otto et al. |
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Effective: 9-1-13 |
Senate Sponsor: Estes |
House Bill 1133 amends the Tax Code to entitle a provider of cable television, Internet access, or telecommunications services to a refund of the state sales and use tax imposed on the sale, lease, or rental or storage, use, or other consumption of tangible personal property if the property is sold, leased, or rented to or stored, used, or consumed by the provider, or a subsidiary of the provider, and the property is directly used or consumed by the provider or subsidiary in or during the distribution of cable television service, the provision of Internet access service, or the transmission, conveyance, routing, or reception of telecommunications services. The bill makes property directly used or consumed in or during the provision, creation, or production of a data processing service or information service ineligible for a refund.
House Bill 1133 sets the amount of the refund for a calendar year either at the amount of the tax paid by the provider or subsidiary during the calendar year on property eligible for a refund, if the total amount of tax paid by all providers and subsidiaries that are eligible for a refund is not more than $50 million for the calendar year, or at a prorated share of $50 million, if the total amount of tax paid by all eligible providers and subsidiaries is more than $50 million for the calendar year. The bill expands the definition of "qualified property" for purposes of the limitation on the appraised value of such property for school district maintenance and operations property tax purposes under the Texas Economic Development Act to include tangible property for which the sales and use tax refund set out by the bill is not claimed.