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 administered by the comptroller; conforming the
1-3 effective dates and possible rates of certain transit and
1-4 development corporation sales taxes to other local sales taxes;
1-5 substituting references to the Comptroller for references to the
1-6 Property Tax Board in certain property tax provisions; conforming
1-7 the period for back assessment in the case of certain improper
1-8 appraisals of property to the period allowed for back assessments
1-9 for other purposes; revising the applicability of the comptroller's
1-10 administrative authority to include all taxes and functions for
1-11 which he has statutory responsibility; clarifying the definitions
1-12 of certain items taxed under the sales tax and controlled substance
1-13 tax laws; revising references in the inheritance tax statute to
1-14 federal tax code provisions concerning credits.
1-15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-16 SECTION 1. Subdivision (3), Subsection (f), Section (11),
1-17 Chapter 683, Acts of the 66th Legislature, 1979 (Article 1118y,
1-18 Vernon's Texas Civil Statutes), is amended to read as follows:
1-19 (3) If an authority created by a principal city having
1-20 a population of more than 800,000 adds territory that is a city or
1-21 town that imposes an additional sales and use tax under Chapter
1-22 321, Tax Code, the additional sales and use tax is repealed as
1-23 provided by Section 321.1025, Tax Code. The effective date for the
2-1 repeal and for the imposition of the tax authorized to be collected
2-2 under Section 16 of this Act in the added territory is the date
2-3 that, under Section <321.102(a)> 321.102(b), Tax Code, the repeal
2-4 of the additional sales and use tax is effective in the territory.
2-5 SECTION 2. Subsection (e), Section 4B, Development
2-6 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
2-7 Statutes), is amended to read as follows:
2-8 (e) If an eligible city adopts the tax, a tax is imposed on
2-9 the receipts from the sale at retail of taxable items within the
2-10 eligible city at a rate approved by the governing body of the
2-11 eligible city. The rate must be equal to one-eighth, one-fourth,
2-12 three-eighths, or one-half of one percent. There is also imposed
2-13 an excise tax on the use, storage, or other consumption within an
2-14 eligible city of tangible personal property purchased, leased, or
2-15 rented from a retailer during the period that the tax is effective
2-16 within an eligible city. The rate of the excise tax is the same as
2-17 the rate of the sales tax portion of the tax and is applied to the
2-18 sales price of the tangible personal property.
2-19 SECTION 3. Subsection (f), Section 4B, Development
2-20 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
2-21 Statutes), is amended to read as follows:
2-22 (f) Chapter 321, Tax Code, governs the imposition,
2-23 computation, administration, collection, and remittance of the tax,
2-24 expressly including its effective date. <except as inconsistent
2-25 with this section. Section 321.102(a), Tax Code, does not apply to
3-1 the tax imposed under this section. The ordinance under which the
3-2 taxes authorized by this section are levied must provide for the
3-3 effective date of the tax. That effective date must occur on the
3-4 first day of a month, which day may not be earlier than the 45th
3-5 day after the date of final action of the governing body in
3-6 adopting the ordinance or after the date of the election, whichever
3-7 is later. If the ordinance levying the tax is adopted after the
3-8 election, the presiding officer of the governing body shall, not
3-9 later than the 10th day after the date of the final action in
3-10 adopting the ordinance, send to the comptroller by certified mail a
3-11 copy of the ordinance. The tax is effective on the date specified
3-12 in the ordinance unless the comptroller, within 10 days after the
3-13 receipt of an ordinance sent under this subsection, notifies the
3-14 secretary of the municipality that more time is required, in which
3-15 case the effective date of the application of the tax is the first
3-16 day of the first calendar quarter after the expiration of the first
3-17 calendar quarter occurring after the date on which the comptroller
3-18 receives the ordinance. After the effective date of the taxes
3-19 imposed under this section, the adoption of a sales and use tax or
3-20 the attempted adoption of a sales and use tax by the eligible city
3-21 or any other taxing jurisdiction having territory in the city does
3-22 not impair the taxes imposed under this section.>
3-23 SECTION 4. Subsection (p), Section 4A, Development
3-24 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
3-25 Statutes), is amended to read as follows:
4-1 (p) A city that is authorized by this section to impose,
4-2 reduce, increase, or abolish the tax under this section may, at the
4-3 same time and on the same ballot, impose, reduce, increase, or
4-4 abolish the additional sales and use tax imposed under Section
4-5 321.101(b), Tax Code, if the city is authorized by Chapter 321, Tax
4-6 Code, to impose, reduce, increase, or abolish the additional sales
4-7 and use tax. <The combined rate of the tax under this section and
4-8 the additional sales and use tax imposed under Section 321.101(b),
4-9 Tax Code, may not exceed one-half of one percent. An election
4-10 adopting a combined rate of the tax under this section and the
4-11 additional sales and use tax that exceeds one-half of one percent
4-12 has no effect.> The city must follow, in relation to the
4-13 imposition, reduction, increase, or abolishment of the additional
4-14 sales and use tax imposed under Section 321.101(b), Tax Code, the
4-15 procedures of that chapter, except that in an election to impose,
4-16 reduce, increase, or abolish the tax under this section and the
4-17 additional sales and use tax the ballot shall be printed to provide
4-18 for voting for or against the proposition: "The adoption of a
4-19 sales and use tax within the city for the promotion and development
4-20 of new and expanded business enterprises at the rate of ________ of
4-21 one percent (one-eighth, one-fourth, three-eighths, or one-half to
4-22 be inserted as appropriate) and the adoption of an additional sales
4-23 and use tax within the city at the rate of ________ of one percent
4-24 to be used to reduce the property tax rate" (one-eighth,
4-25 one-fourth, three-eighths, or one-half to be inserted as
5-1 appropriate).
5-2 SECTION 5. Section 21.22(b) and (c), Tax Code, are amended
5-3 to read as follows:
5-4 (b) The comptroller <board>, in prescribing the contents of
5-5 the form, shall ensure that the form requires the person to furnish
5-6 the information necessary to identify the mobile home and determine
5-7 its ownership, to name the person for whom the mobile home was
5-8 moved, and to state the address of the place from which and the
5-9 place to which the mobile home was moved.
5-10 (c) A person required to make a record of the movement of a
5-11 mobile home shall keep the record for the period of time prescribed
5-12 by the comptroller <board>. He shall keep the record at his
5-13 principal place of business if he has one, and if he does not have
5-14 one, he shall keep the record at his principal residence.
5-15 SECTION 6. Section 22.27(b), Tax Code, is amended to read as
5-16 follows:
5-17 (b) Information made confidential by this section may be
5-18 disclosed:
5-19 (1) in a judicial or administrative proceeding
5-20 pursuant to a lawful subpoena;
5-21 (2) to the person who filed the statement or report or
5-22 the owner of property subject to the statement, report, or
5-23 information or to a representative of either authorized in writing
5-24 to receive the information;
5-25 (3) to <the director of> the comptroller and his
6-1 employees authorized by him in writing to receive the information
6-2 or to an assessor or a chief appraiser if requested in writing;
6-3 (4) in a judicial or administrative proceeding
6-4 relating to property taxation to which the person who filed the
6-5 statement or report or the owner of the property that is a subject
6-6 of the statement, report, or information is a party;
6-7 (5) for statistical purposes if in a form that does
6-8 not identify specific property or a specific property owner; or
6-9 (6) if and to the extent the information is required
6-10 to be included in a public document or record that the appraisal
6-11 office is required to prepare or maintain.
6-12 SECTION 7. Section 23.54, Tax Code, is amended to read as
6-13 follows:
6-14 Sec. 23.54. Application. (j) If the chief appraiser
6-15 discovers that appraisal under this subchapter has been erroneously
6-16 allowed in any one of the five <10> preceding years because of
6-17 failure of the person whose land was allowed appraisal under this
6-18 subchapter to give notice that his eligibility has ended, he shall
6-19 add the difference between the appraised value of the land under
6-20 this subchapter and the market value of the land to the appraisal
6-21 roll as provided by Section 25.21 of this code for other property
6-22 that escapes taxation.
6-23 SECTION 8. Section 24.02(d), Tax Code, is amended to read as
6-24 follows:
6-25 (d) Reports must be filed before March 1. For good cause
7-1 shown the comptroller <board> may extend the filing deadline <by
7-2 written order> for a single period not to exceed 60 days.
7-3 SECTION 9. Section 41.461(a), Tax Code, is amended to read
7-4 as follows:
7-5 Sec. 41.461. Notice of Certain Matters Before Hearing.
7-6 (a) At least 14 days before a hearing on a protest, the chief
7-7 appraiser shall:
7-8 (1) deliver a copy of the pamphlet prepared by the
7-9 comptroller <State Property Tax Board> under Section 5.06(a) to the
7-10 property owner initiating the protest if the owner is representing
7-11 himself, or to an agent representing the owner if requested by the
7-12 agent;
7-13 (2) inform the property owner that the owner or the
7-14 agent of the owner may inspect and may obtain a copy of the data,
7-15 schedules, formulas, and all other information the chief appraiser
7-16 plans to introduce at the hearing to establish any matter at issue;
7-17 and
7-18 (3) deliver a copy of the hearing procedures
7-19 established by the appraisal review board under Section 41.66 to
7-20 the property owner.
7-21 SECTION 10. Section 101.007, Tax Code is amended to read as
7-22 follows:
7-23 Sec. 101.007 REFERENCES TO STATE OFFICERS. A reference in
7-24 this code <title> to the comptroller, the treasurer, or another
7-25 officer includes authorized representatives and employees of the
8-1 officer unless the provision indicates that only the officer is
8-2 intended in the reference.
8-3 SECTION 11. Subchapter A, Chapter 111, Tax Code, is amended
8-4 by adding Section 111.0022 to read as follows:
8-5 Sec. 111.0022. APPLICATION TO OTHER LAWS ADMINISTERED BY
8-6 COMPTROLLER. This subtitle and Subtitle A of this title apply to
8-7 the administration, collection, and enforcement of other taxes,
8-8 fees, and charges, including penalties, or other financial
8-9 transactions, that the comptroller is required or authorized to
8-10 collect or administer, or other statutory functions the comptroller
8-11 is required or authorized to perform under other law, to the extent
8-12 that the other law does not conflict with this subtitle or Subtitle
8-13 A of this title.
8-14 SECTION 12. Section 151.0048, Tax Code, is amended to read
8-15 as follows:
8-16 Sec. 151.0048. "Real Property Service." "Real property
8-17 service" means:
8-18 (1) landscaping;
8-19 (2) the care and maintenance of lawns, yards, or
8-20 ornamental trees or other plants;
8-21 (3) the removal or collection of garbage, rubbish, or
8-22 other solid waste other than:
8-23 (A) hazardous waste;
8-24 (B) industrial solid waste;
8-25 (C) waste material that results from an activity
9-1 associated with the exploration, development, or production of oil,
9-2 gas, geothermal resources, or any other substance or material
9-3 regulated by the Railroad Commission of Texas under Section 91.101,
9-4 Natural Resources Code; <and>
9-5 (D) domestic sewage or an irrigation return
9-6 flow, to the extent the sewage or return flow does not constitute
9-7 garbage or rubbish; and
9-8 (E) industrial discharges subject to regulation
9-9 by permit issued pursuant to Chapter 26, Texas Water Code;
9-10 (4) building or grounds cleaning, janitorial, or
9-11 custodial services;
9-12 (5) a structural pest control service covered by
9-13 Section 2, Texas Structural Pest Control Act (Article 135b-6,
9-14 Vernon's Texas Civil Statutes); or
9-15 (6) the surveying of real property.
9-16 SECTION 13. Section 151.058, Tax Code, is amended to read as
9-17 follows:
9-18 Sec. 151.058. <REPAIR> PROPERTY USED TO PROVIDE TAXABLE
9-19 SERVICES AND SALES PRICE OF TAXABLE SERVICES.
9-20 (a) A person performing <repair> services taxable under this
9-21 chapter is the consumer of machinery and equipment used in
9-22 performing the services <this service>.
9-23 (b) The total amount charged for a <repair> service taxable
9-24 under this chapter is subject to tax, including charges for labor,
9-25 materials, overhead, and profit, regardless of whether such charges
10-1 are separately identified to the purchaser of the service.
10-2 SECTION 14. Section 151.104(a), Tax Code, is amended to read
10-3 as follows:
10-4 (a) A sale of a taxable item <tangible personal property> by
10-5 a person for delivery in this state is presumed to be a sale for
10-6 storage, use, or consumption in this state unless a resale or
10-7 exemption certificate is accepted by the seller.
10-8 SECTION 15. Section 151.320(b), Tax Code, is amended to read
10-9 as follows:
10-10 (b) "Magazine" means a publication that is usually
10-11 paperbacked and sometimes illustrated, that appears at a regular
10-12 interval, and that contains stories, articles, and essays by
10-13 various writers and advertisements. "Magazine" does not mean the
10-14 publication of current information which is taxable pursuant to
10-15 Section 151.0038 of this Code as an "Information Service".
10-16 SECTION 16. Section 159.001 of the Tax Code is amended to
10-17 read as follows:
10-18 Sec. 159.001. Definitions.
10-19 In this chapter:
10-20 (1) "Controlled substance" has the meaning assigned by
10-21 Section 481.002, Health and Safety Code.
10-22 (2) "Counterfeit substance" has the meaning assigned
10-23 by Section 481.002, Health and Safety Code.
10-24 (3) "Dealer" means a person who in violation of the
10-25 law of this state imports into this state or manufactures,
11-1 produces, acquires, or possesses in this state:
11-2 (A) seven grams or more of a taxable substance
11-3 consisting of a controlled substance, counterfeit substance, or
11-4 simulated controlled substance; <or>
11-5 (B) fifty dosage units or more of a taxable
11-6 substance not commonly sold by weight, consisting of or containing
11-7 a controlled substance, counterfeit substance, or simulated
11-8 controlled substance; or
11-9 (C) more than four ounces of a taxable substance
11-10 consisting of or containing marihuana.
11-11 (4) "Marihuana" has the meaning assigned by Section
11-12 481.002, Health and Safety Code.
11-13 (5) "Simulated controlled substance" has the meaning
11-14 assigned by Section 482.001, Health and Safety Code.
11-15 (6) "Tax payment certificate" means a stamp or other
11-16 device provided by the comptroller under Section 159.003 of this
11-17 code for use under this chapter.
11-18 (7) "Taxable substance" means a controlled substance,
11-19 a counterfeit substance, a simulated controlled substance, or
11-20 marihuana, or a mixture of any materials that contains a controlled
11-21 substance, counterfeit substance, simulated controlled substance,
11-22 or marihuana.
11-23 (8) "Dosage unit" means a tablet, pill, capsule, vial,
11-24 ampule, or other identifiable or separated unit designed or
11-25 packaged to be used, taken, or ingested at one time.
12-1 SECTION 17. Section 211.001(8) and Section 211.001(9), Tax
12-2 Code, are amended to read as follows:
12-3 (8) "Generation-skipping transfer" means a transfer
12-4 for which a credit for state taxes is allowable under Section
12-5 <2602(c)(5)(C)> 2604, Internal Revenue Code.
12-6 (9) "Generation-skipping transfer tax credit" means
12-7 the maximum amount of the credit for state death taxes allowable
12-8 under Section <2602(c)(5)(C)> 2604, Internal Revenue Code.
12-9 SECTION 18. This act takes effect September 1, 1993.
12-10 SECTION 19. The importance of this legislation and the
12-11 crowded condition of the calendars in both houses create an
12-12 emergency and an imperative public necessity that the
12-13 constitutional rule requiring bills to be read on three several
12-14 days in each house be suspended, and this rule is hereby suspended.