By:  Montford                                          S.B. No. 892
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to simplifying the application, calculation,
    1-2  administration and reporting of, and the calculation of interest
    1-3  on, certain taxes.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 79, Public Utility Regulatory Act
    1-6  (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
    1-7  as follows:
    1-8        Sec. 79.  PAYMENT DATES; DELINQUENCY.  All assessments shall
    1-9  be due on August 15 of each year.  Any public utility may instead
   1-10  make quarterly payments due on August 15, November 15, February 15,
   1-11  and May 15, of each year.  There shall be assessed as a penalty an
   1-12  additional fee of 10 percent of the amount due for any late
   1-13  payment.  Fees delinquent for more than 30 days shall draw interest
   1-14  at the rate of 12 percent per annum<, compounded monthly,> on the
   1-15  assessment and penalty due.
   1-16        SECTION 2.  Section 4(b), Article 6060, Revised Statutes, is
   1-17  amended to read as follows:
   1-18        Sec. 4(b).  PENALTIES AND INTEREST.  A tax imposed by this
   1-19  article that becomes delinquent draws interest at the rate of 12
   1-20  percent a year<, compounded monthly,> beginning on the 60th day
   1-21  after the date the tax becomes delinquent until the date the tax is
   1-22  paid.
   1-23        SECTION 3.  Section 101.007, Tax Code is amended to read as
    2-1  follows:
    2-2        Sec. 101.007.  REFERENCES TO STATE OFFICERS.  A reference in
    2-3  this code <title> to the comptroller, the treasurer, or another
    2-4  officer includes authorized representatives and employees of the
    2-5  officer unless the provision indicates that only the officer is
    2-6  intended in the reference.
    2-7        SECTION 4.  Subchapter A, Chapter 111, Tax Code, is amended
    2-8  by adding Section 111.0022 to read as follows:
    2-9        Sec. 111.0022.  APPLICATION TO OTHER LAWS ADMINISTERED BY
   2-10  COMPTROLLER.  This subtitle and Subtitle A of this title apply to
   2-11  the administration, collection, and enforcement of other taxes,
   2-12  fees, and charges, including penalties, or other financial
   2-13  transactions, that the comptroller is required or authorized to
   2-14  collect or administer, or other statutory functions the comptroller
   2-15  is required or authorized to perform under other law, to the extent
   2-16  that the other law does not conflict with this subtitle or Subtitle
   2-17  A of this title.
   2-18        SECTION 5.  Subsection (a), Section 111.060, Tax Code, is
   2-19  amended to read as follows:
   2-20        Sec. 111.060.  (a)  The yearly rate on all delinquent taxes
   2-21  imposed by this title is 12 percent<, compounded monthly>.
   2-22        SECTION 6.  Section 151.103, Tax Code, is amended to read as
   2-23  follows:
   2-24        Sec. 151.103.  COLLECTION BY RETAILER; PURCHASER'S RECEIPT.
   2-25  (a)  A retailer engaged in business in this state who makes a sale
    3-1  of a taxable item for storage, use, or consumption in this state
    3-2  shall collect the use tax that is due from the purchaser and give
    3-3  the purchaser a receipt for the tax payment.  When the amount of
    3-4  use tax is added:
    3-5              (1)  it becomes a part of the sales price;
    3-6              (2)  it is a debt of the purchaser to the seller until
    3-7  paid; and
    3-8              (3)  if unpaid, it is recoverable at law in the same
    3-9  manner as the original sales price.
   3-10        (b)  The purchaser's receipt must be issued in the form and
   3-11  manner prescribed by the comptroller.
   3-12        (c)  When several taxable items are sold together and at the
   3-13  same time, the use tax is determined on the sum of the sales prices
   3-14  of the items sold exclusive of any item the sale of which is
   3-15  exempted by this chapter.
   3-16        SECTION 7.  Section 151.308(a), Tax Code, is amended to read
   3-17  as follows:
   3-18        (a)  The following are exempted from the taxes imposed by
   3-19  this chapter:
   3-20              (1)  oil as taxed by Chapter 202;
   3-21              (2)  sulphur as taxed by Chapter 203;
   3-22              (3)  motor fuels and special fuels as defined, taxed,
   3-23  or exempted by Chapter 153;
   3-24              (4)  cement as taxed by Chapter 181;
   3-25              (5)  motor vehicles, trailers, except mobile offices,
    4-1  and semitrailers as defined, taxed or exempted by Chapter 152 or
    4-2  157;
    4-3              (6)  mixed beverages, ice, or nonalcoholic beverages
    4-4  and the preparation or service of these items if the receipts are
    4-5  taxable by Chapter 202, Alcoholic Beverage Code;
    4-6              (7)  alcoholic beverages when sold to the holder of a
    4-7  private club registration permit or to the agent or employee of the
    4-8  holder of a private club registration permit if the holder or agent
    4-9  or employee is acting as the agent of the members of the club and
   4-10  if the beverages are to be served on the premises of the club;
   4-11              (8)  oil well service as taxed by Subchapter E, Chapter
   4-12  191; and
   4-13              (9)  insurance premiums subject to gross premiums
   4-14  taxes.
   4-15        SECTION 8.  Section 151.330, Tax Code, is amended by adding
   4-16  Subsections (h) and (i), to read as follows:
   4-17        (h)  The sale of tangible personal property to a common
   4-18  carrier is exempted from the sales tax imposed by Subchapter C of
   4-19  this chapter if the tangible personal property:
   4-20              (1)  is shipped to a point outside this state using the
   4-21  purchasing carrier's facilities under a bill of lading; and
   4-22              (2)  is actually transported to the out-of-state
   4-23  destination for use by the carrier in the conduct of its business
   4-24  as a common carrier outside this state.
   4-25        (i)  The storage or use of tangible personal property
    5-1  acquired outside this state for use as a repair or replacement part
    5-2  for and actually affixed in this state to a self-propelled vehicle
    5-3  that is used as a licensed and certificated common carrier of
    5-4  persons or property is exempted from the use tax imposed by
    5-5  Subchapter D of this chapter.
    5-6        SECTION 9.  Chapter 151, Tax Code, is amended by adding
    5-7  Section 151.350 to read as follows:
    5-8        Sec. 151.350.  LABOR TO REPAIR CERTAIN PROPERTY.
    5-9  (a)  Separately stated charges for labor to repair real or tangible
   5-10  personal property damaged within a disaster area by the condition
   5-11  that causes the area to be declared a disaster area are exempt from
   5-12  the taxes imposed by this Chapter.
   5-13        (b)  This exemption does not apply to tangible personal
   5-14  property transferred as part of the repair.
   5-15        (c)  In this section, the term "disaster area" means:
   5-16              (1)  an area so declared by the Governor under the
   5-17  provisions of Chapter 418 of the Government Code, or
   5-18              (2)  an area so declared by the President under the
   5-19  provisions of 42 U.S.C. Sec. 5141.
   5-20        SECTION 10.  Section 152.001, Tax Code, is amended by adding
   5-21  Subdivision (16) to read as follows:
   5-22              (16)  "Mobile office" means a trailer designed to be
   5-23  used as an office, sales outlet, or other work place.
   5-24        SECTION 11.  Section 152.089, Tax Code, is amended to read as
   5-25  follows:
    6-1        Sec. 152.089.  VEHICLES TAXED BY OTHER LAW.  The taxes
    6-2  imposed by this chapter do not apply to motor vehicles, trailers,
    6-3  and semitrailers on which tax is imposed by <taxed under> Chapter
    6-4  157 of this code, and the taxes imposed by Chapter 157 of this code
    6-5  do not apply to motor vehicles on which tax is imposed by <taxed
    6-6  under> this chapter, provided that if a motor vehicle, trailer, or
    6-7  semitrailer on which tax is imposed by <taxed under> Chapter 157 of
    6-8  this code ceases to be used as an interstate motor vehicle,
    6-9  trailer, or semitrailer within one year of either the date the
   6-10  vehicle was purchased in Texas or the date the vehicle was first
   6-11  brought into Texas, the taxes imposed by this chapter will apply at
   6-12  that time.
   6-13        SECTION 12.  Section 157.001(9), Tax Code, is amended to read
   6-14  as follows:
   6-15              (9)  "Purchase" means a lease of or a transfer of title
   6-16  to a motor vehicle, trailer, or semitrailer for consideration
   6-17  <includes a lease for a time period exceeding 180 days except the
   6-18  lease of a motor vehicle with a driver>.
   6-19        SECTION 13.  Section 157.001(10), Tax Code, is amended to
   6-20  read as follows:
   6-21              (10)  "Preceding year" means the period of 12
   6-22  consecutive calendar months immediately prior to January 1
   6-23  <September 1> or any other day which the comptroller may designate.
   6-24        SECTION 14.  Section 157.001, Tax Code, is amended by adding
   6-25  Subsection (11), to read as follows:
    7-1              (11)  "Lease" means an agreement by an owner of a motor
    7-2  vehicle, trailer, or semitrailer to give to another for longer than
    7-3  180 days under a single agreement exclusive use of the vehicle
    7-4  without a driver for consideration.
    7-5        SECTION 15.  Section 157.101, Tax Code, is amended to read as
    7-6  follows:
    7-7        Sec. 157.101.  Taxes <Tax> Imposed.  <There is levied a motor
    7-8  vehicle sales> Sales and use taxes are imposed <tax> on interstate
    7-9  motor vehicles, trailers, and semitrailers; <operated by motor
   7-10  carriers which are residents of this state or are domiciled or
   7-11  doing business in this state.>
   7-12        (a)  purchased in this state or purchased outside this state
   7-13  and brought into this state by a motor carrier that is a resident
   7-14  of this state or is domiciled or doing business in this state;
   7-15        (b)  hired with a driver by a motor carrier that is a
   7-16  resident of this state or is domiciled or doing business in this
   7-17  state to transport persons or property over the carrier's routes
   7-18  and under the authority of the carrier's permits; or
   7-19        (c)  contracted by a motor carrier that is a resident of this
   7-20  state or is domiciled or doing business in this state for use as
   7-21  trip-leased equipment.
   7-22        SECTION 16.  Section 202.201, Tax Code, is amended to read as
   7-23  follows:
   7-24        Sec. 202.201.  PRODUCER'S REPORT.  (a)  Except as otherwise
   7-25  provided in this subsection, each producer must obtain a taxpayer
    8-1  identification number from the comptroller.  Producers whose only
    8-2  ownership interest in the oil is a royalty interest must obtain a
    8-3  tax identification number from the comptroller only if they have
    8-4  elected to take their share of production in kind or if the
    8-5  comptroller determines that the producer's activity or interest is
    8-6  such that a number must be assigned and reports filed in order to
    8-7  protect the state's interest in the tax attributable to the
    8-8  producer.
    8-9        <(a)> (b)  <On or before the 25th day of each calendar month,
   8-10  each producer or his authorized agent shall file a report with the
   8-11  comptroller.>  Producers authorized by the comptroller to remit the
   8-12  tax due must file a report with the comptroller on or before the
   8-13  25th day of each month.  The report must contain the following
   8-14  information concerning total oil produced, used, lost, stolen or
   8-15  otherwise unaccounted for, during the preceding month:
   8-16              (1)  the number of barrels of oil produced;
   8-17              (2)  the counties in which oil was produced;
   8-18              (3)  the <names of the leases from which the oil was
   8-19  produced> name, address and comptroller assigned taxpayer
   8-20  identification number of each first purchaser of oil;
   8-21              (4)  the <name and address of each first purchaser of
   8-22  the oil> price received for the oil from each first purchaser;
   8-23              (5)  the <price received for the oil from each first
   8-24  purchaser> names of the leases from which the oil was produced; and
   8-25              (6)  other information the comptroller may reasonably
    9-1  require.
    9-2        <(b)> (c)  If the report the producer is required to file
    9-3  shows additional tax due, the producer must pay the additional tax
    9-4  when it files the report.  Notwithstanding any other provision in
    9-5  this code, if the producer fails to remit a reasonable estimate of
    9-6  the tax due in accordance with Section 202.1515 of this chapter, a
    9-7  penalty of 10 percent of the delinquent required reasonable
    9-8  estimate will be forfeited and due along with any additional tax
    9-9  due with the report specified in this section.
   9-10        (d)  Producers whose only sales are to purchasers who remit
   9-11  the tax due in accordance with Section 202.153 of this chapter are
   9-12  not required to file a report on the oil sold.
   9-13        (e)  A producer must file a Crude Oil Special Tax Report with
   9-14  the comptroller and pay the applicable tax imposed under this
   9-15  chapter if any oil has been used, lost, stolen or otherwise
   9-16  unaccounted for after it has been produced and measured.
   9-17        (f)  This report must be filed by the 25th day of the month
   9-18  following the month in which the oil is used, lost, stolen, or
   9-19  otherwise unaccounted for.  The report must contain the information
   9-20  required in Subsection (b) of this section.
   9-21        (g)  Producers that are no longer in business must notify the
   9-22  comptroller of this fact by the 25th day of the month following
   9-23  their last day of business.
   9-24        SECTION 17.  This Act applies to taxes due on or after the
   9-25  effective date of this Act.  Taxes due before the effective date of
   10-1  this Act are governed by the law in effect when the taxes become
   10-2  due, and that law is continued in effect for the collection of
   10-3  taxes due and for civil and criminal enforcement of the liability
   10-4  for those taxes.
   10-5        SECTION 18.  This Act takes effect January 1, 1994.
   10-6        SECTION 19.  The importance of this legislation and the
   10-7  crowded condition of the calendars in both houses create an
   10-8  emergency and an imperative public necessity that the
   10-9  constitutional rule requiring bills to be read on three several
  10-10  days in each house be suspended, and this rule is hereby suspended.