By: Montford S.B. No. 893
A BILL TO BE ENTITLED
AN ACT
1-1 relating to technical changes to statutes involving certain tax
1-2 provisions, including those administered by the comptroller;
1-3 clarifying the definitions of certain items taxed under the sales
1-4 tax and controlled substance tax laws; and revising references in
1-5 the inheritance tax statute to federal tax code provisions
1-6 concerning credits.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Subdivision (3), Subsection (f), Section 11,
1-9 Chapter 683, Acts of the 66th Legislature, 1979 (Article 1118y,
1-10 Vernon's Texas Civil Statutes), is amended to read as follows:
1-11 (3) If an authority created by a principal city having
1-12 a population of more than 800,000 adds territory that is a city or
1-13 town that imposes an additional sales and use tax under Chapter
1-14 321, Tax Code, the additional sales and use tax is repealed as
1-15 provided by Section 321.1025, Tax Code. The effective date for the
1-16 repeal and for the imposition of the tax authorized to be collected
1-17 under Section 16 of this Act in the added territory is the date
1-18 that, under Section 321.102(b) <321.102(a)>, Tax Code, the repeal
1-19 of the additional sales and use tax is effective in the territory.
1-20 SECTION 2. Subsection (e), Section 4B, Development
1-21 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
1-22 Statutes), is amended to read as follows:
1-23 (e) If an eligible city adopts the tax, a tax is imposed on
2-1 the receipts from the sale at retail of taxable items within the
2-2 eligible city at a rate approved by the governing body of the
2-3 eligible city. The rate must be equal to one-eighth, one-fourth,
2-4 three-eighths, or one-half of one percent. There is also imposed
2-5 an excise tax on the use, storage, or other consumption within the
2-6 eligible city of tangible personal property purchased, leased, or
2-7 rented from a retailer during the period that the tax is effective
2-8 within the eligible city. The rate of the excise tax is the same
2-9 as the rate of the sales tax portion of the tax and is applied to
2-10 the sale price of the tangible personal property.
2-11 SECTION 3. Subsection (f), Section 4B, Development
2-12 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
2-13 Statutes), is amended to read as follows:
2-14 (f) Chapter 321, Tax Code, governs the imposition,
2-15 computation, administration, collection, and remittance of the tax,
2-16 expressly including its effective date <except as inconsistent with
2-17 this section. Section 321.102(a), Tax Code, does not apply to the
2-18 tax imposed under this section. The ordinance under which the
2-19 taxes authorized by this section are levied must provide for the
2-20 effective date of the tax. That effective date must occur on the
2-21 first day of a month, which day may not be earlier than the 45th
2-22 day after the date of final action of the governing body in
2-23 adopting the ordinance or after the date of the election, whichever
2-24 is later. If the ordinance levying the tax is adopted after the
2-25 election, the presiding officer of the governing body shall, not
3-1 later than the 10th day after the date of the final action in
3-2 adopting the ordinance, send to the comptroller by certified mail a
3-3 copy of the ordinance. The tax is effective on the date specified
3-4 in the ordinance unless the comptroller, within 10 days after the
3-5 receipt of an ordinance sent under this subsection, notifies the
3-6 secretary of the municipality that more time is required, in which
3-7 case the effective date of the application of the tax is the first
3-8 day of the first calendar quarter after the expiration of the first
3-9 complete calendar quarter occurring after the date on which the
3-10 comptroller receives the ordinance. After the effective date of
3-11 the taxes imposed under this section, the adoption of a sales and
3-12 use tax or the attempted adoption of a sales and use tax by the
3-13 eligible city or any other taxing jurisdiction having territory in
3-14 the city does not impair the taxes imposed under this section>.
3-15 SECTION 4. Subsection (p), Section 4A, Development
3-16 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
3-17 Statutes), is amended to read as follows:
3-18 (p) A city that is authorized by this section to impose,
3-19 reduce, increase, or abolish the tax under this section may, at the
3-20 same time and on the same ballot, impose, reduce, increase, or
3-21 abolish the additional sales and use tax imposed under Section
3-22 321.101(b), Tax Code, if the city is authorized by Chapter 321, Tax
3-23 Code, to impose, reduce, increase, or abolish the additional sales
3-24 and use tax. <The combined rate of the tax under this section and
3-25 the additional sales and use tax imposed under Section 321.101(b),
4-1 Tax Code, may not exceed one-half of one percent. An election
4-2 adopting a combined rate of the tax under this section and the
4-3 additional sales and use tax that exceeds one-half of one percent
4-4 has no effect.> The city must follow, in relation to the
4-5 imposition, reduction, increase, or abolishment of the additional
4-6 sales and use tax imposed under Section 321.101(b), Tax Code, the
4-7 procedures of that chapter, except that in an election to impose,
4-8 reduce, increase, or abolish the tax under this section and the
4-9 additional sales and use tax the ballot shall be printed to provide
4-10 for voting for or against the proposition: "The adoption of a
4-11 sales and use tax within the city for the promotion and development
4-12 of new and expanded business enterprises at the rate of ________ of
4-13 one percent (one-eighth, one-fourth, three-eighths, or one-half to
4-14 be inserted as appropriate) and the adoption of an additional sales
4-15 and use tax within the city at the rate of ________ of one percent
4-16 to be used to reduce the property tax rate" (one-eighth,
4-17 one-fourth, three-eighths, or one-half to be inserted as
4-18 appropriate).
4-19 SECTION 5. Subsections (b) and (c), Section 21.22, Tax Code,
4-20 are amended to read as follows:
4-21 (b) The comptroller <board>, in prescribing the contents of
4-22 the form, shall ensure that the form requires the person to furnish
4-23 the information necessary to identify the mobile home and determine
4-24 its ownership, to name the person for whom the mobile home was
4-25 moved, and to state the address of the place from which and the
5-1 place to which the mobile home was moved.
5-2 (c) A person required to make a record of the movement of a
5-3 mobile home shall keep the record for the period of time prescribed
5-4 by the comptroller <board>. He shall keep the record at his
5-5 principal place of business if he has one, and if he does not have
5-6 one, he shall keep the record at his principal residence.
5-7 SECTION 6. Subsection (j), Section 23.54, Tax Code, is
5-8 amended to read as follows:
5-9 (j) If the chief appraiser discovers that appraisal under
5-10 this subchapter has been erroneously allowed in any one of the five
5-11 <10> preceding years because of failure of the person whose land
5-12 was allowed appraisal under this subchapter to give notice that its
5-13 eligibility has ended, he shall add the difference between the
5-14 appraised value of the land under this subchapter and the market
5-15 value of the land to the appraisal roll as provided by Section
5-16 25.21 of this code for other property that escapes taxation.
5-17 SECTION 7. Subsection (d), Section 24.02, Tax Code, is
5-18 amended to read as follows:
5-19 (d) Reports must be filed before March 1. For good cause
5-20 shown the comptroller <board> may extend the filing deadline <by
5-21 written order> for a single period not to exceed 60 days.
5-22 SECTION 8. Subsection (a), Section 41.461, Tax Code, is
5-23 amended to read as follows:
5-24 (a) At least 14 days before a hearing on a protest, the
5-25 chief appraiser shall:
6-1 (1) deliver a copy of the pamphlet prepared by the
6-2 comptroller <State Property Tax Board> under Section 5.06(a) to the
6-3 property owner initiating the protest if the owner is representing
6-4 himself, or to an agent representing the owner if requested by the
6-5 agent;
6-6 (2) inform the property owner that the owner or the
6-7 agent of the owner may inspect and may obtain a copy of the data,
6-8 schedules, formulas, and all other information the chief appraiser
6-9 plans to introduce at the hearing to establish any matter at issue;
6-10 and
6-11 (3) deliver a copy of the hearing procedures
6-12 established by the appraisal review board under Section 41.66 to
6-13 the property owner.
6-14 SECTION 9. Section 101.007, Tax Code, is amended to read as
6-15 follows:
6-16 Sec. 101.007. References to State Officers. A reference in
6-17 this code <title> to the comptroller, the treasurer, or another
6-18 officer includes authorized representatives and employees of the
6-19 officer unless the provision indicates that only the officer is
6-20 intended in the reference.
6-21 SECTION 10. Section 151.0048, Tax Code, is amended to read
6-22 as follows:
6-23 Sec. 151.0048. <">REAL PROPERTY SERVICE.<"> "Real property
6-24 service" means:
6-25 (1) landscaping;
7-1 (2) the care and maintenance of lawns, yards, or
7-2 ornamental trees or other plants;
7-3 (3) the removal or collection of garbage, rubbish, or
7-4 other solid waste other than:
7-5 (A) hazardous waste;
7-6 (B) industrial solid waste;
7-7 (C) waste material that results from an activity
7-8 associated with the exploration, development, or production of oil,
7-9 gas, geothermal resources, or any other substance or material
7-10 regulated by the Railroad Commission of Texas under Section 91.101,
7-11 Natural Resources Code; <and>
7-12 (D) domestic sewage or an irrigation return
7-13 flow, to the extent the sewage or return flow does not constitute
7-14 garbage or rubbish; and
7-15 (E) industrial discharges subject to regulation
7-16 by permit issued pursuant to Chapter 26, Water Code;
7-17 (4) building or grounds cleaning, janitorial, or
7-18 custodial services;
7-19 (5) a structural pest control service covered by
7-20 Section 2, Texas Structural Pest Control Act (Article 135b-6,
7-21 Vernon's Texas Civil Statutes); or
7-22 (6) the surveying of real property.
7-23 SECTION 11. Section 151.058, Tax Code, is amended to read as
7-24 follows:
7-25 Sec. 151.058. PROPERTY USED TO PROVIDE TAXABLE SERVICES AND
8-1 SALE PRICE OF TAXABLE <REPAIR> SERVICES. (a) A person performing
8-2 <repair> services taxable under this chapter is the consumer of
8-3 machinery and equipment used in performing the services <service>.
8-4 (b) The total amount charged for a <repair> service taxable
8-5 under this chapter is subject to tax, including charges for labor,
8-6 materials, overhead, and profit, regardless of whether such charges
8-7 are separately identified to the purchaser of the service.
8-8 SECTION 12. Subsection (a), Section 151.104, Tax Code, is
8-9 amended to read as follows:
8-10 (a) A sale of a taxable item <tangible personal property> by
8-11 a person for delivery in this state is presumed to be a sale for
8-12 storage, use, or consumption in this state unless a resale or
8-13 exemption certificate is accepted by the seller.
8-14 SECTION 13. Subsection (b), Section 151.320, Tax Code, is
8-15 amended to read as follows:
8-16 (b) "Magazine" means a publication that is usually
8-17 paperbacked and sometimes illustrated, that appears at a regular
8-18 interval, and that contains stories, articles, and essays by
8-19 various writers and advertisements. "Magazine" does not mean the
8-20 publication of current information which is taxable pursuant to
8-21 Section 151.0038 of this code as an "information service."
8-22 SECTION 14. Section 159.001, Tax Code, is amended to read as
8-23 follows:
8-24 Sec. 159.001. Definitions. In this chapter:
8-25 (1) "Controlled substance" has the meaning assigned by
9-1 Section 481.002, Health and Safety Code.
9-2 (2) "Counterfeit substance" has the meaning assigned
9-3 by Section 481.002, Health and Safety Code.
9-4 (3) "Dealer" means a person who in violation of the
9-5 law of this state imports into this state or manufactures,
9-6 produces, acquires, or possesses in this state:
9-7 (A) seven grams or more of a taxable substance
9-8 consisting of or containing a controlled substance, counterfeit
9-9 substance, or simulated controlled substance; <or>
9-10 (B) fifty dosage units or more of a taxable
9-11 substance not commonly sold by weight, consisting of or containing
9-12 a controlled substance, counterfeit substance, or simulated
9-13 controlled substance; or
9-14 (C) more than four ounces of a taxable substance
9-15 consisting of or containing marihuana.
9-16 (4) "Marihuana" has the meaning assigned by Section
9-17 481.002, Health and Safety Code.
9-18 (5) "Simulated controlled substance" has the meaning
9-19 assigned by Section 482.001, Health and Safety Code.
9-20 (6) "Tax payment certificate" means a stamp or other
9-21 device provided by the comptroller under Section 159.003 of this
9-22 code for use under this chapter.
9-23 (7) "Taxable substance" means a controlled substance,
9-24 a counterfeit substance, a simulated controlled substance, or
9-25 marihuana, or a mixture of any materials that contains a controlled
10-1 substance, counterfeit substance, simulated controlled substance,
10-2 or marihuana.
10-3 (8) "Dosage unit" means a tablet, pill, capsule, vial,
10-4 ampule, or other identifiable or separated unit designed or
10-5 packaged to be used, taken, or ingested at one time.
10-6 SECTION 15. Subdivisions (8) and (9), Section 211.001, Tax
10-7 Code, are amended to read as follows:
10-8 (8) "Generation-skipping transfer" means a transfer
10-9 for which a credit for state taxes is allowable under Section 2604
10-10 <2602(c)(5)(C)>, Internal Revenue Code.
10-11 (9) "Generation-skipping transfer tax credit" means
10-12 the maximum amount of the credit for state death taxes allowable
10-13 under Section 2604 <2602(c)(5)(C)>, Internal Revenue Code.
10-14 SECTION 16. This Act takes effect September 1, 1993.
10-15 SECTION 17. The importance of this legislation and the
10-16 crowded condition of the calendars in both houses create an
10-17 emergency and an imperative public necessity that the
10-18 constitutional rule requiring bills to be read on three several
10-19 days in each house be suspended, and this rule is hereby suspended.