By Montford S.B. No. 893
Substitute the following for S.B. No. 893:
By Craddick C.S.S.B. No. 893
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to technical changes to statutes involving certain tax
1-3 provisions administered by the comptroller; conforming the
1-4 effective dates and possible rates of certain transit and
1-5 development corporation sales taxes to other local sales taxes;
1-6 substituting references to the Comptroller for references to the
1-7 Property Tax Board in certain property tax provisions; conforming
1-8 the period for back assessment in the case of certain improper
1-9 appraisals of property to the period allowed for back assessments
1-10 for other purposes; clarifying the definitions of certain items
1-11 taxed under the sales tax and controlled substance tax laws;
1-12 revising references in the inheritance tax statute to federal tax
1-13 code provisions concerning credits.
1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15 SECTION 1. Subdivision (3), Subsection (f), Section (11),
1-16 Chapter 683, Acts of the 66th Legislature, 1979 (Article 1118y,
1-17 Vernon's Texas Civil Statutes), is amended to read as follows:
1-18 (3) If an authority created by a principal city having a
1-19 population of more than 800,000 adds territory that is a city or
1-20 town that imposes an additional sales and use tax under Chapter
1-21 321, Tax Code, the additional sales and use tax is repealed as
1-22 provided by Section 321.1025, Tax Code. The effective date for the
1-23 repeal and for the imposition of the tax authorized to be collected
1-24 under Section 16 of this Act in the added territory is the date
2-1 that, under Section 321.102(b) <321.102(a)>, Tax Code, the repeal
2-2 of the additional sales and use tax is effective in the territory.
2-3 SECTION 2. Subsection (p), Section 4A, Development
2-4 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
2-5 Statutes), is amended to read as follows:
2-6 (p) A city that is authorized by this section to impose,
2-7 reduce, increase, or abolish the tax under this section may, at the
2-8 same time and on the same ballot, impose, reduce, increase, or
2-9 abolish the additional sales and use tax imposed under Section
2-10 321.101(b), Tax Code, if the city is authorized by Chapter 321, Tax
2-11 Code, to impose, reduce, increase, or abolish the additional sales
2-12 and use tax. <The combined rate of the tax under this section and
2-13 the additional sales and use tax imposed under Section 321.101(b),
2-14 Tax Code, may not exceed one-half of one percent. An election
2-15 adopting a combined rate of the tax under this section and the
2-16 additional sales and use tax that exceeds one-half of one percent
2-17 has no effect.> The city must follow, in relation to the
2-18 imposition, reduction, increase, or abolishment of the additional
2-19 sales and use tax imposed under Section 321.101(b), Tax Code, the
2-20 procedures of that chapter, except that in an election to impose,
2-21 reduce, increase, or abolish the tax under this section and the
2-22 additional sales and use tax the ballot shall be printed to provide
2-23 for voting for or against the proposition: "The adoption of a
2-24 sales and use tax within the city for the promotion and development
2-25 of new and expanded business enterprises at the rate of ________ of
2-26 one percent (one-eighth, one-fourth, three-eighths, or one-half to
2-27 be inserted as appropriate) and the adoption of an additional sales
3-1 and use tax within the city at the rate of ________ of one percent
3-2 to be used to reduce the property tax rate" (one-eighth,
3-3 one-fourth, three-eighths, or one-half to be inserted as
3-4 appropriate).
3-5 SECTION 3. Subsection (e), Section 4B, Development
3-6 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
3-7 Statutes), is amended to read as follows:
3-8 (e) If an eligible city adopts the tax, a tax is imposed on
3-9 the receipts from the sale at retail of taxable items within the
3-10 eligible city at a rate approved by the governing body of the
3-11 eligible city. The rate must be equal to one-eighth, one-fourth,
3-12 three-eighths, or one-half of one percent. There is also imposed
3-13 an excise tax on the use, storage, or other consumption within the
3-14 eligible city of tangible personal property purchased, leased, or
3-15 rented from a retailer during the period that the tax is effective
3-16 within the eligible city. The rate of the excise tax is the same
3-17 as the rate of the sales tax portion of the tax and is applied to
3-18 the sale price of the tangible personal property.
3-19 SECTION 4. Sections 21.22(b) and (c), Tax Code, are amended
3-20 to read as follows:
3-21 (b) The comptroller <board>, in prescribing the contents of
3-22 the form, shall ensure that the form requires the person to furnish
3-23 the information necessary to identify the mobile home and determine
3-24 its ownership, to name the person for whom the mobile home was
3-25 moved, and to state the address of the place from which and the
3-26 place to which the mobile home was moved.
3-27 (c) A person required to make a record of the movement of a
4-1 mobile home shall keep the record for the period of time prescribed
4-2 by the comptroller <board>. He shall keep the record at his
4-3 principal place of business if he has one, and if he does not have
4-4 one, he shall keep the record at his principal residence.
4-5 SECTION 5. Section 23.54(j), Tax Code, is amended to read as
4-6 follows:
4-7 (j) If the chief appraiser discovers that appraisal under
4-8 this subchapter has been erroneously allowed in any one of the five
4-9 <10> preceding years because of failure of the person whose land
4-10 was allowed appraisal under this subchapter to give notice that his
4-11 eligibility has ended, he shall add the difference between the
4-12 appraised value of the land under this subchapter and the market
4-13 value of the land to the appraisal roll as provided by Section
4-14 25.21 of this code for other property that escapes taxation.
4-15 SECTION 6. Section 24.02(d), Tax Code, is amended to read as
4-16 follows:
4-17 (d) Reports must be filed before March 1. For good cause
4-18 shown the comptroller <board> may extend the filing deadline <by
4-19 written order> for a single period not to exceed 60 days.
4-20 SECTION 7. Section 41.461(a), Tax Code, is amended to read
4-21 as follows:
4-22 (a) At least 14 days before a hearing on a protest, the
4-23 chief appraiser shall:
4-24 (1) deliver a copy of the pamphlet prepared by the
4-25 comptroller <State Property Tax Board> under Section 5.06(a) to the
4-26 property owner initiating the protest if the owner is representing
4-27 himself, or to an agent representing the owner if requested by the
5-1 agent;
5-2 (2) inform the property owner that the owner or the
5-3 agent of the owner may inspect and may obtain a copy of the data,
5-4 schedules, formulas, and all other information the chief appraiser
5-5 plans to introduce at the hearing to establish any matter at issue;
5-6 and
5-7 (3) deliver a copy of the hearing procedures
5-8 established by the appraisal review board under Section 41.66 to
5-9 the property owner.
5-10 SECTION 8. Section 101.007, Tax Code is amended to read as
5-11 follows:
5-12 Sec. 101.007. References to State Officers. A reference in
5-13 this code <title> to the comptroller, the treasurer, or another
5-14 officer includes authorized representatives and employees of the
5-15 officer unless the provision indicates that only the officer is
5-16 intended in the reference.
5-17 SECTION 9. Section 151.0048, Tax Code, is amended to read as
5-18 follows:
5-19 Sec. 151.0048. Real Property Service. "Real property
5-20 service" means:
5-21 (1) landscaping;
5-22 (2) the care and maintenance of lawns, yards, or
5-23 ornamental trees or other plants;
5-24 (3) the removal or collection of garbage, rubbish, or
5-25 other solid waste other than:
5-26 (A) hazardous waste;
5-27 (B) industrial solid waste;
6-1 (C) waste material that results from an activity
6-2 associated with the exploration, development, or production of oil,
6-3 gas, geothermal resources, or any other substance or material
6-4 regulated by the Railroad Commission of Texas under Section 91.101,
6-5 Natural Resources Code; <and>
6-6 (D) domestic sewage or an irrigation return
6-7 flow, to the extent the sewage or return flow does not constitute
6-8 garbage or rubbish; and
6-9 (E) industrial discharges subject to regulation
6-10 by permit issued pursuant to Chapter 26, Water Code;
6-11 (4) building or grounds cleaning, janitorial, or
6-12 custodial services;
6-13 (5) a structural pest control service covered by
6-14 Section 2, Texas Structural Pest Control Act (Article 135b-6,
6-15 Vernon's Texas Civil Statutes); or
6-16 (6) the surveying of real property.
6-17 SECTION 10. Section 151.058, Tax Code, is amended to read as
6-18 follows:
6-19 Sec. 151.058. PROPERTY USED TO PROVIDE TAXABLE SERVICES AND
6-20 SALES PRICE OF TAXABLE <REPAIR> SERVICES.
6-21 (a) A person performing <repair> services taxable under this
6-22 chapter is the consumer of machinery and equipment used in
6-23 performing the services <service>.
6-24 (b) The total amount charged for a <repair> service taxable
6-25 under this chapter is subject to tax, including charges for labor,
6-26 materials, overhead, and profit, regardless of whether such charges
6-27 are separately identified to the purchaser of the service.
7-1 SECTION 11. Section 151.104(a), Tax Code, is amended to read
7-2 as follows:
7-3 (a) A sale of a taxable item <tangible personal property> by
7-4 a person for delivery in this state is presumed to be a sale for
7-5 storage, use, or consumption in this state unless a resale or
7-6 exemption certificate is accepted by the seller.
7-7 SECTION 12. Section 151.320(b), Tax Code, is amended to read
7-8 as follows:
7-9 (b) "Magazine" means a publication that is usually
7-10 paperbacked and sometimes illustrated, that appears at a regular
7-11 interval, and that contains stories, articles, and essays by
7-12 various writers and advertisements. "Magazine" does not mean the
7-13 publication of current information which is taxable pursuant to
7-14 Section 151.0038 of this Code as an "Information Service".
7-15 SECTION 13. Section 159.001 of the Tax Code is amended to
7-16 read as follows:
7-17 Sec. 159.001. Definitions.
7-18 In this chapter:
7-19 (1) "Controlled substance" has the meaning assigned by
7-20 Section 481.002, Health and Safety Code.
7-21 (2) "Counterfeit substance" has the meaning assigned
7-22 by Section 481.002, Health and Safety Code.
7-23 (3) "Dealer" means a person who in violation of the
7-24 law of this state imports into this state or manufactures,
7-25 produces, acquires, or possesses in this state:
7-26 (A) seven grams or more of a taxable substance
7-27 consisting of or containing a controlled substance, counterfeit
8-1 substance, or simulated controlled substance; <or>
8-2 (B) fifty dosage units or more of a taxable
8-3 substance not commonly sold by weight, consisting of or containing
8-4 a controlled substance, counterfeit substance, or simulated
8-5 controlled substance; or
8-6 (C) more than four ounces of a taxable substance
8-7 consisting of or containing marihuana.
8-8 (4) "Marihuana" has the meaning assigned by Section
8-9 481.002, Health and Safety Code.
8-10 (5) "Simulated controlled substance" has the meaning
8-11 assigned by Section 482.001, Health and Safety Code.
8-12 (6) "Tax payment certificate" means a stamp or other
8-13 device provided by the comptroller under Section 159.003 of this
8-14 code for use under this chapter.
8-15 (7) "Taxable substance" means a controlled substance,
8-16 a counterfeit substance, a simulated controlled substance, or
8-17 marihuana, or a mixture of any materials that contains a controlled
8-18 substance, counterfeit substance, simulated controlled substance,
8-19 or marihuana.
8-20 (8) "Dosage unit" means a tablet, pill, capsule, vial,
8-21 ampule, or other identifiable or separated unit designed or
8-22 packaged to be used, taken, or ingested at one time.
8-23 SECTION 14. Sections 211.001(8) and (9), Tax Code, are
8-24 amended to read as follows:
8-25 (8) "Generation-skipping transfer" means a transfer
8-26 for which a credit for state taxes is allowable under Section 2604
8-27 <2602(c)(5)(C)>, Internal Revenue Code.
9-1 (9) "Generation-skipping transfer tax credit" means
9-2 the maximum amount of the credit for state death taxes allowable
9-3 under Section 2604 <2602(c)(5)(C)>, Internal Revenue Code.
9-4 SECTION 15. This act takes effect September 1, 1993.
9-5 SECTION 16. The importance of this legislation and the
9-6 crowded condition of the calendars in both houses create an
9-7 emergency and an imperative public necessity that the
9-8 constitutional rule requiring bills to be read on three several
9-9 days in each house be suspended, and this rule is hereby suspended.