By Cuellar of Webb H.B. No. 181
74R705 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to tangible personal property exported outside of the
1-3 United States and the persons who may provide documentation to
1-4 prove the tax exemption for the property; providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 151.157, Tax Code, is amended by amending
1-7 Subsections (b) and (h) and adding Subsections (i) and (j) to read
1-8 as follows:
1-9 (b) The comptroller may issue a license to a customs broker
1-10 for the purpose described by Subsection (a) for each place of
1-11 business of the broker if the broker:
1-12 (1) applies to the comptroller for the license;
1-13 (2) pays the fee set by the comptroller;
1-14 (3) posts the bond or security in the amount required
1-15 by Subsection (d); <and>
1-16 (4) submits the lessor's written authorization for the
1-17 broker to conduct the business on the premises if the broker leases
1-18 the premises in which the business is located;
1-19 (5) states in the application that the comptroller has
1-20 not issued a license to the broker for that place of business; and
1-21 (6) complies with any rules of the comptroller to
1-22 administer this section and to prevent the evasion of the tax under
1-23 this chapter and local sales and use taxes.
1-24 (h) A customs broker shall charge at least $5 for export
2-1 documentation issued by the broker for the purpose of showing the
2-2 exemption of tangible personal property under Section
2-3 151.307(b)(2).
2-4 (i) A customs broker may not issue export documentation for
2-5 the purpose of showing the exemption of tangible personal property
2-6 under Section 151.307(b)(2) if the documentation covers property:
2-7 (1) exported on different dates; or
2-8 (2) belonging to more than one foreign purchaser.
2-9 (j) In this section:
2-10 (1) "Customs broker" means a person licensed by the
2-11 United States Customs Service to act as a customs house broker.
2-12 (2) "Authorized employee" means an employee of a
2-13 customs broker:
2-14 (A) who is authorized by the broker to perform
2-15 customs transactions on behalf of the broker;
2-16 (B) who is compensated by the broker with a
2-17 regular salary or wages;
2-18 (C) who is under the direct control and
2-19 supervision of the broker; and
2-20 (D) from whose salary or wages the broker is
2-21 required to and actually does deduct and withhold a tax under
2-22 federal law.
2-23 SECTION 2. Section 151.158, Tax Code, is amended to read as
2-24 follows:
2-25 Sec. 151.158. DEVICE FOR IMPRESSING EXPORT STAMPS OR SEALS.
2-26 (a) The comptroller shall have <printed or> manufactured devices
2-27 to impress a stamp or a seal on export documentation. The
3-1 comptroller shall determine <stamps in> the design, size, and
3-2 quantity of the devices <the comptroller determines is> necessary
3-3 for the purpose of this section.
3-4 (b) <The comptroller may designate the method of
3-5 identification for the stamps.>
3-6 <(c) The comptroller shall require that the stamps be
3-7 manufactured so that a stamp may be easily and securely attached to
3-8 export documentation.>
3-9 <(d)> The comptroller shall change the design of the device
3-10 <stamps at least once each calendar quarter, or more frequently> if
3-11 the comptroller determines it is necessary for the enforcement of
3-12 this section and the comptroller's rules.
3-13 (c) <(e)> The comptroller may provide the device <stamps>
3-14 only to a customs broker licensed under Section 151.157.
3-15 (d) <(f)> A device <stamp> is invalid if transferred to a
3-16 person other than the customs broker to whom the comptroller issued
3-17 the device <stamp>, to an authorized employee of that customs
3-18 broker, or to an authorized independent contractor.
3-19 (e) <(g)> The comptroller shall charge an amount for the
3-20 device that the comptroller determines reasonably reflects the <not
3-21 to exceed five cents for each stamp. The comptroller shall use the
3-22 money from the sale of the stamps only for> costs related to
3-23 producing the device <stamps>, including costs of materials, labor,
3-24 and overhead.
3-25 <(h) The comptroller may require stamps to be purchased in
3-26 minimum quantities if the comptroller considers it necessary for
3-27 the efficient administration of this section.>
4-1 SECTION 3. Sections 151.307(b) and (c), Tax Code, are
4-2 amended to read as follows:
4-3 (b) When an exemption is claimed because tangible personal
4-4 property is exported beyond the territorial limits of the United
4-5 States, proof of export may be shown only by:
4-6 (1) a bill of lading issued by a licensed and
4-7 certificated carrier of persons or property showing the seller as
4-8 consignor, the buyer as consignee, and a delivery point outside the
4-9 territorial limits of the United States;
4-10 (2) documentation:
4-11 (A) provided by a United States Customs Broker
4-12 licensed by the comptroller under Section 151.157;
4-13 (B) certifying that delivery was made to a point
4-14 outside the territorial limits of the United States; and
4-15 (C) impressed by a stamp or seal <to which a
4-16 stamp issued under Section 151.158 is affixed> in the manner
4-17 required by <that section or> Section 151.157 or 151.158;
4-18 (3) import documents from the country of destination
4-19 showing that the property was imported into a country other than
4-20 the United States;
4-21 (4) an original airway, ocean, or railroad bill of
4-22 lading and a forwarder's receipt if an air, ocean, or rail freight
4-23 forwarder takes possession of the property; or
4-24 (5) any other manner provided by the comptroller for
4-25 an enterprise authorized to make tax-free purchases under Section
4-26 151.156.
4-27 (c) Documentation, including the stamp or seal impressed on
5-1 <affixed to> the documentation, that is provided by a customs
5-2 broker licensed by the comptroller under Section 151.157 is
5-3 presumed valid in the absence of clear and convincing evidence that
5-4 the tangible personal property covered by the documentation was not
5-5 exported outside the territorial limits of the United States.
5-6 SECTION 4. Section 151.712(b), Tax Code, is amended to read
5-7 as follows:
5-8 (b) A person who provides proof of documentation that
5-9 tangible personal property has been exported outside of the United
5-10 States or a person who may benefit from the provision of the proof
5-11 of documentation, including a customs broker, authorized employee,
5-12 authorized independent contractor, seller of the property or agent
5-13 or employee of the seller, or a consumer of the property or agent
5-14 or employee of the consumer, may not sell or buy the proof of
5-15 documentation, including a device to impress a stamp or seal on
5-16 <stamps required for> the documentation. This subsection does not
5-17 apply to a customs broker who accepts a fee for providing
5-18 documentation under Section 151.307(b).
5-19 SECTION 5. Section 151.713, Tax Code, is amended by amending
5-20 Subsections (b) and (h) and adding Subsection (i) to read as
5-21 follows:
5-22 (b) Except as provided by Subsection (h), after <After>
5-23 notice as provided by this section, a person who violates this
5-24 section is subject to a monetary penalty that may not exceed:
5-25 (1) $500 for the first violation;
5-26 (2) $1,000 for the second violation; and
5-27 (3) $3,000 for each subsequent violation.
6-1 (h) After notice as provided by Subsection (d) and after
6-2 following the procedures provided by Subsection (e), the
6-3 comptroller may allow a person who violates this section for the
6-4 first time to take a class in lieu of paying a monetary penalty.
6-5 The comptroller shall by rule establish criteria for the class that
6-6 will help ensure that a person taking the class avoids further
6-7 violations of this section.
6-8 (i) In this section, "customs broker" and "authorized
6-9 employee" have the meanings assigned by Section 151.157.
6-10 SECTION 6. (a) This Act takes effect September 1, 1995.
6-11 (b) Sections 1-3 of this Act apply only to an exemption to
6-12 the tax imposed under Chapter 151, Tax Code, claimed on or after
6-13 that date.
6-14 (c) Sections 4 and 5 of this Act apply only to conduct that
6-15 occurs on or after the effective date of this Act. Conduct occurs
6-16 on or after the effective date of this Act if every element of the
6-17 conduct occurs on or after that date. Conduct that occurs before
6-18 the effective date of this Act is governed by the law in effect at
6-19 the time the conduct occurred, and that law is continued in effect
6-20 for that purpose.
6-21 SECTION 7. The importance of this legislation and the
6-22 crowded condition of the calendars in both houses create an
6-23 emergency and an imperative public necessity that the
6-24 constitutional rule requiring bills to be read on three several
6-25 days in each house be suspended, and this rule is hereby suspended.