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
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2-30 Name: Donald Lee, Legislative Coordinator x
2-31 Representing: Harris Co. Commissioners Ct
2-32 City: Houston
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2-34 Name: John Curlee, Legislative Coordinator x
2-35 Representing: Tarrant Co. Commissioners Ct
2-36 City: Ft. Worth
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