1-1 By: Kamel (Senate Sponsor - Ratliff) H.B. No. 85 1-2 (In the Senate - Received from the House March 24, 1993; 1-3 March 25, 1993, read first time and referred to Committee on 1-4 Finance; May 10, 1993, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 12, Nays 0; May 10, 1993, 1-6 sent to printer.) 1-7 COMMITTEE VOTE 1-8 Yea Nay PNV Absent 1-9 Montford x 1-10 Turner x 1-11 Armbrister x 1-12 Barrientos x 1-13 Bivins x 1-14 Ellis x 1-15 Haley x 1-16 Moncrief x 1-17 Parker x 1-18 Ratliff x 1-19 Sims x 1-20 Truan x 1-21 Zaffirini x 1-22 COMMITTEE SUBSTITUTE FOR H.B. No. 85 By: Armbrister 1-23 A BILL TO BE ENTITLED 1-24 AN ACT 1-25 relating to the taxation of property used for the improvement of 1-26 realty for a county. 1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-28 SECTION 1. Section 151.311, Tax Code, is amended to read as 1-29 follows: 1-30 Sec. 151.311. PROPERTY USED FOR IMPROVEMENT OF REALTY OF A 1-31 COUNTY, MUNICIPALITY, SCHOOL DISTRICT, OR NONPROFIT HOSPITAL. 1-32 (a) Tangible personal property purchased by a contractor for use 1-33 in the performance of a contract for the improvement of realty for 1-34 a municipality, school district or nonprofit hospital is exempted 1-35 from the taxes imposed by this chapter to the extent of the value 1-36 of the tangible personal property used or consumed or both in the 1-37 performance of the contract. 1-38 (b) Tangible personal property is exempted from the taxes 1-39 imposed by this chapter if the property is: 1-40 (1) purchased by a contractor for use in the 1-41 performance of a contract for the improvement of realty for a 1-42 municipality or county; and 1-43 (2) incorporated into that improvement. 1-44 (c) In this section "nonprofit hospital" means a hospital 1-45 licensed under Chapter 241 or 577, Health and Safety Code, that is 1-46 operated as a charitable or nonprofit establishment. 1-47 SECTION 2. (a) This Act takes effect October 1, 1993, and, 1-48 except as provided by Section 3 of this Act, applies to tangible 1-49 personal property purchased on or after that date. 1-50 (b) The change in law made by this Act does not affect tax 1-51 liability accruing before the effective date of this Act. That 1-52 liability continues in effect as if this Act had not been enacted, 1-53 and the former law is continued in effect for the collection of 1-54 taxes due and for civil and criminal enforcement of the liability 1-55 for those taxes. 1-56 SECTION 3. The exemption provided by Section 151.311, Tax 1-57 Code, as amended by this Act, for a contractor who purchases 1-58 property for the improvement of realty for a municipality or county 1-59 does not apply to the purchase of tangible personal property under 1-60 a contract executed before the effective date of this Act and under 1-61 which the municipality or county is not entitled to a refund of an 1-62 amount of the contract price equal to the amount of the tax savings 1-63 that would accrue to the contractor from the exemption provided by 1-64 this Act if the exemption were effective for purchases made after 1-65 the effective date of this Act. This section does not prevent the 1-66 application of the exemption provided by Section 151.311, Tax Code, 1-67 as amended by this Act, to a contractor who refunds all or a part 1-68 of the tax savings under a contract amendment executed by the 2-1 municipality or county and the contractor after the effective date 2-2 of this Act. 2-3 SECTION 4. The importance of this legislation and the 2-4 crowded condition of the calendars in both houses create an 2-5 emergency and an imperative public necessity that the 2-6 constitutional rule requiring bills to be read on three several 2-7 days in each house be suspended, and this rule is hereby suspended. 2-8 * * * * * 2-9 Austin, 2-10 Texas 2-11 May 10, 1993 2-12 Hon. Bob Bullock 2-13 President of the Senate 2-14 Sir: 2-15 We, your Committee on Finance to which was referred H.B. No. 85, 2-16 have had the same under consideration, and I am instructed to 2-17 report it back to the Senate with the recommendation that it do not 2-18 pass, but that the Committee Substitute adopted in lieu thereof do 2-19 pass and be printed. 2-20 Montford, 2-21 Chairman 2-22 * * * * * 2-23 WITNESSES 2-24 FOR AGAINST ON 2-25 ___________________________________________________________________ 2-26 Name: Craig Pardue x 2-27 Representing: Dallas County 2-28 City: Dallas 2-29 ------------------------------------------------------------------- 2-30 Name: Donald Lee, Legislative Coordinator x 2-31 Representing: Harris Co. Commissioners Ct 2-32 City: Houston 2-33 ------------------------------------------------------------------- 2-34 Name: John Curlee, Legislative Coordinator x 2-35 Representing: Tarrant Co. Commissioners Ct 2-36 City: Ft. Worth 2-37 -------------------------------------------------------------------