1-1 By: Montford S.B. No. 893
1-2 (In the Senate - Filed March 11, 1993; March 15, 1993, read
1-3 first time and referred to Committee on Finance; April 22, 1993,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 13, Nays 0; April 22, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 COMMITTEE SUBSTITUTE FOR S.B. No. 893 By: Montford
1-22 A BILL TO BE ENTITLED
1-23 AN ACT
1-24 relating to technical changes to statutes involving certain tax
1-25 provisions, including those administered by the comptroller;
1-26 clarifying the definitions of certain items taxed under the sales
1-27 tax and controlled substance tax laws; and revising references in
1-28 the inheritance tax statute to federal tax code provisions
1-29 concerning credits.
1-30 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-31 SECTION 1. Subdivision (3), Subsection (f), Section 11,
1-32 Chapter 683, Acts of the 66th Legislature, 1979 (Article 1118y,
1-33 Vernon's Texas Civil Statutes), is amended to read as follows:
1-34 (3) If an authority created by a principal city having
1-35 a population of more than 800,000 adds territory that is a city or
1-36 town that imposes an additional sales and use tax under Chapter
1-37 321, Tax Code, the additional sales and use tax is repealed as
1-38 provided by Section 321.1025, Tax Code. The effective date for the
1-39 repeal and for the imposition of the tax authorized to be collected
1-40 under Section 16 of this Act in the added territory is the date
1-41 that, under Section 321.102(b) <321.102(a)>, Tax Code, the repeal
1-42 of the additional sales and use tax is effective in the territory.
1-43 SECTION 2. Subsection (e), Section 4B, Development
1-44 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
1-45 Statutes), is amended to read as follows:
1-46 (e) If an eligible city adopts the tax, a tax is imposed on
1-47 the receipts from the sale at retail of taxable items within the
1-48 eligible city at a rate approved by the governing body of the
1-49 eligible city. The rate must be equal to one-eighth, one-fourth,
1-50 three-eighths, or one-half of one percent. There is also imposed
1-51 an excise tax on the use, storage, or other consumption within the
1-52 eligible city of tangible personal property purchased, leased, or
1-53 rented from a retailer during the period that the tax is effective
1-54 within the eligible city. The rate of the excise tax is the same
1-55 as the rate of the sales tax portion of the tax and is applied to
1-56 the sale price of the tangible personal property.
1-57 SECTION 3. Subsection (f), Section 4B, Development
1-58 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
1-59 Statutes), is amended to read as follows:
1-60 (f) Chapter 321, Tax Code, governs the imposition,
1-61 computation, administration, collection, and remittance of the tax,
1-62 expressly including its effective date <except as inconsistent with
1-63 this section. Section 321.102(a), Tax Code, does not apply to the
1-64 tax imposed under this section. The ordinance under which the
1-65 taxes authorized by this section are levied must provide for the
1-66 effective date of the tax. That effective date must occur on the
1-67 first day of a month, which day may not be earlier than the 45th
1-68 day after the date of final action of the governing body in
2-1 adopting the ordinance or after the date of the election, whichever
2-2 is later. If the ordinance levying the tax is adopted after the
2-3 election, the presiding officer of the governing body shall, not
2-4 later than the 10th day after the date of the final action in
2-5 adopting the ordinance, send to the comptroller by certified mail a
2-6 copy of the ordinance. The tax is effective on the date specified
2-7 in the ordinance unless the comptroller, within 10 days after the
2-8 receipt of an ordinance sent under this subsection, notifies the
2-9 secretary of the municipality that more time is required, in which
2-10 case the effective date of the application of the tax is the first
2-11 day of the first calendar quarter after the expiration of the first
2-12 complete calendar quarter occurring after the date on which the
2-13 comptroller receives the ordinance. After the effective date of
2-14 the taxes imposed under this section, the adoption of a sales and
2-15 use tax or the attempted adoption of a sales and use tax by the
2-16 eligible city or any other taxing jurisdiction having territory in
2-17 the city does not impair the taxes imposed under this section>.
2-18 SECTION 4. Subsection (p), Section 4A, Development
2-19 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
2-20 Statutes), is amended to read as follows:
2-21 (p) A city that is authorized by this section to impose,
2-22 reduce, increase, or abolish the tax under this section may, at the
2-23 same time and on the same ballot, impose, reduce, increase, or
2-24 abolish the additional sales and use tax imposed under Section
2-25 321.101(b), Tax Code, if the city is authorized by Chapter 321, Tax
2-26 Code, to impose, reduce, increase, or abolish the additional sales
2-27 and use tax. <The combined rate of the tax under this section and
2-28 the additional sales and use tax imposed under Section 321.101(b),
2-29 Tax Code, may not exceed one-half of one percent. An election
2-30 adopting a combined rate of the tax under this section and the
2-31 additional sales and use tax that exceeds one-half of one percent
2-32 has no effect.> The city must follow, in relation to the
2-33 imposition, reduction, increase, or abolishment of the additional
2-34 sales and use tax imposed under Section 321.101(b), Tax Code, the
2-35 procedures of that chapter, except that in an election to impose,
2-36 reduce, increase, or abolish the tax under this section and the
2-37 additional sales and use tax the ballot shall be printed to provide
2-38 for voting for or against the proposition: "The adoption of a
2-39 sales and use tax within the city for the promotion and development
2-40 of new and expanded business enterprises at the rate of ________ of
2-41 one percent (one-eighth, one-fourth, three-eighths, or one-half to
2-42 be inserted as appropriate) and the adoption of an additional sales
2-43 and use tax within the city at the rate of ________ of one percent
2-44 to be used to reduce the property tax rate" (one-eighth,
2-45 one-fourth, three-eighths, or one-half to be inserted as
2-46 appropriate).
2-47 SECTION 5. Subsections (b) and (c), Section 21.22, Tax Code,
2-48 are amended to read as follows:
2-49 (b) The comptroller <board>, in prescribing the contents of
2-50 the form, shall ensure that the form requires the person to furnish
2-51 the information necessary to identify the mobile home and determine
2-52 its ownership, to name the person for whom the mobile home was
2-53 moved, and to state the address of the place from which and the
2-54 place to which the mobile home was moved.
2-55 (c) A person required to make a record of the movement of a
2-56 mobile home shall keep the record for the period of time prescribed
2-57 by the comptroller <board>. He shall keep the record at his
2-58 principal place of business if he has one, and if he does not have
2-59 one, he shall keep the record at his principal residence.
2-60 SECTION 6. Subsection (j), Section 23.54, Tax Code, is
2-61 amended to read as follows:
2-62 (j) If the chief appraiser discovers that appraisal under
2-63 this subchapter has been erroneously allowed in any one of the five
2-64 <10> preceding years because of failure of the person whose land
2-65 was allowed appraisal under this subchapter to give notice that its
2-66 eligibility has ended, he shall add the difference between the
2-67 appraised value of the land under this subchapter and the market
2-68 value of the land to the appraisal roll as provided by Section
2-69 25.21 of this code for other property that escapes taxation.
2-70 SECTION 7. Subsection (d), Section 24.02, Tax Code, is
3-1 amended to read as follows:
3-2 (d) Reports must be filed before March 1. For good cause
3-3 shown the comptroller <board> may extend the filing deadline <by
3-4 written order> for a single period not to exceed 60 days.
3-5 SECTION 8. Subsection (a), Section 41.461, Tax Code, is
3-6 amended to read as follows: (a) At least 14 days before a hearing
3-7 on a protest, the chief appraiser shall:
3-8 (1) deliver a copy of the pamphlet prepared by the
3-9 comptroller <State Property Tax Board> under Section 5.06(a) to the
3-10 property owner initiating the protest if the owner is representing
3-11 himself, or to an agent representing the owner if requested by the
3-12 agent;
3-13 (2) inform the property owner that the owner or the
3-14 agent of the owner may inspect and may obtain a copy of the data,
3-15 schedules, formulas, and all other information the chief appraiser
3-16 plans to introduce at the hearing to establish any matter at issue;
3-17 and
3-18 (3) deliver a copy of the hearing procedures
3-19 established by the appraisal review board under Section 41.66 to
3-20 the property owner.
3-21 SECTION 9. Section 101.007, Tax Code, is amended to read as
3-22 follows:
3-23 Sec. 101.007. References to State Officers. A reference in
3-24 this code <title> to the comptroller, the treasurer, or another
3-25 officer includes authorized representatives and employees of the
3-26 officer unless the provision indicates that only the officer is
3-27 intended in the reference.
3-28 SECTION 10. Section 151.0048, Tax Code, is amended to read
3-29 as follows:
3-30 Sec. 151.0048. <">REAL PROPERTY SERVICE.<"> "Real property
3-31 service" means:
3-32 (1) landscaping;
3-33 (2) the care and maintenance of lawns, yards, or
3-34 ornamental trees or other plants;
3-35 (3) the removal or collection of garbage, rubbish, or
3-36 other solid waste other than:
3-37 (A) hazardous waste;
3-38 (B) industrial solid waste;
3-39 (C) waste material that results from an activity
3-40 associated with the exploration, development, or production of oil,
3-41 gas, geothermal resources, or any other substance or material
3-42 regulated by the Railroad Commission of Texas under Section 91.101,
3-43 Natural Resources Code; <and>
3-44 (D) domestic sewage or an irrigation return
3-45 flow, to the extent the sewage or return flow does not constitute
3-46 garbage or rubbish; and
3-47 (E) industrial discharges subject to regulation
3-48 by permit issued pursuant to Chapter 26, Water Code;
3-49 (4) building or grounds cleaning, janitorial, or
3-50 custodial services;
3-51 (5) a structural pest control service covered by
3-52 Section 2, Texas Structural Pest Control Act (Article 135b-6,
3-53 Vernon's Texas Civil Statutes); or
3-54 (6) the surveying of real property.
3-55 SECTION 11. Section 151.058, Tax Code, is amended to read as
3-56 follows:
3-57 Sec. 151.058. PROPERTY USED TO PROVIDE TAXABLE SERVICES AND
3-58 SALES PRICE OF TAXABLE <REPAIR> SERVICES. (a) A person performing
3-59 <repair> services taxable under this chapter is the consumer of
3-60 machinery and equipment used in performing the services <service>.
3-61 (b) The total amount charged for a <repair> service taxable
3-62 under this chapter is subject to tax, including charges for labor,
3-63 materials, overhead, and profit, regardless of whether such charges
3-64 are separately identified to the purchaser of the service.
3-65 SECTION 12. Subsection (a), Section 151.104, Tax Code, is
3-66 amended to read as follows:
3-67 (a) A sale of a taxable item <tangible personal property> by
3-68 a person for delivery in this state is presumed to be a sale for
3-69 storage, use, or consumption in this state unless a resale or
3-70 exemption certificate is accepted by the seller.
4-1 SECTION 13. Subsection (b), Section 151.320, Tax Code, is
4-2 amended to read as follows:
4-3 (b) "Magazine" means a publication that is usually
4-4 paperbacked and sometimes illustrated, that appears at a regular
4-5 interval, and that contains stories, articles, and essays by
4-6 various writers and advertisements. "Magazine" does not mean the
4-7 publication of current information which is taxable pursuant to
4-8 Section 151.0038 of this code as an "Information Service".
4-9 SECTION 14. Section 159.001, Tax Code, is amended to read as
4-10 follows:
4-11 Sec. 159.001. Definitions. In this chapter:
4-12 (1) "Controlled substance" has the meaning assigned by
4-13 Section 481.002, Health and Safety Code.
4-14 (2) "Counterfeit substance" has the meaning assigned
4-15 by Section 481.002, Health and Safety Code.
4-16 (3) "Dealer" means a person who in violation of the
4-17 law of this state imports into this state or manufactures,
4-18 produces, acquires, or possesses in this state:
4-19 (A) seven grams or more of a taxable substance
4-20 consisting of or containing a controlled substance, counterfeit
4-21 substance, or simulated controlled substance; <or>
4-22 (B) fifty dosage units or more of a taxable
4-23 substance not commonly sold by weight, consisting of or containing
4-24 a controlled substance, counterfeit substance, or simulated
4-25 controlled substance; or
4-26 (C) more than four ounces of a taxable substance
4-27 consisting of or containing marihuana.
4-28 (4) "Marihuana" has the meaning assigned by Section
4-29 481.002, Health and Safety Code.
4-30 (5) "Simulated controlled substance" has the meaning
4-31 assigned by Section 482.001, Health and Safety Code.
4-32 (6) "Tax payment certificate" means a stamp or other
4-33 device provided by the comptroller under Section 159.003 of this
4-34 code for use under this chapter.
4-35 (7) "Taxable substance" means a controlled substance,
4-36 a counterfeit substance, a simulated controlled substance, or
4-37 marihuana, or a mixture of any materials that contains a controlled
4-38 substance, counterfeit substance, simulated controlled substance,
4-39 or marihuana.
4-40 (8) "Dosage unit" means a tablet, pill, capsule, vial,
4-41 ampule, or other identifiable or separated unit designed or
4-42 packaged to be used, taken, or ingested at one time.
4-43 SECTION 15. Subdivisions (8) and (9), Section 211.001, Tax
4-44 Code, are amended to read as follows:
4-45 (8) "Generation-skipping transfer" means a transfer
4-46 for which a credit for state taxes is allowable under Section 2604
4-47 <2602(c)(5)(C)>, Internal Revenue Code.
4-48 (9) "Generation-skipping transfer tax credit" means
4-49 the maximum amount of the credit for state death taxes allowable
4-50 under Section 2604 <2602(c)(5)(C)>, Internal Revenue Code.
4-51 SECTION 16. This Act takes effect September 1, 1993.
4-52 SECTION 17. The importance of this legislation and the
4-53 crowded condition of the calendars in both houses create an
4-54 emergency and an imperative public necessity that the
4-55 constitutional rule requiring bills to be read on three several
4-56 days in each house be suspended, and this rule is hereby suspended.
4-57 * * * * *
4-58 Austin,
4-59 Texas
4-60 April 22, 1993
4-61 Hon. Bob Bullock
4-62 President of the Senate
4-63 Sir:
4-64 We, your Committee on Finance to which was referred S.B. No. 893,
4-65 have had the same under consideration, and I am instructed to
4-66 report it back to the Senate with the recommendation that it do not
4-67 pass, but that the Committee Substitute adopted in lieu thereof do
4-68 pass and be printed.
4-69 Montford,
4-70 Chairman
5-1 * * * * *
5-2 WITNESSES
5-3 FOR AGAINST ON
5-4 ___________________________________________________________________
5-5 Name: Wade Anderson x
5-6 Representing: State Comptroller
5-7 City: Austin
5-8 -------------------------------------------------------------------
5-9 Name: John Christian x
5-10 Representing: State Comptroller
5-11 City: Austin
5-12 -------------------------------------------------------------------