By Holzheauser                                        H.B. No. 2194
       74R3663 DAK-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the relationship of governmental entities outside this
    1-3  state, particularly the United Mexican States, to state tax
    1-4  provisions.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 151.006, Tax Code, is amended to read as
    1-7  follows:
    1-8        Sec. 151.006.  "Sale for Resale".  "Sale for resale" means a
    1-9  sale of:
   1-10              (1)  tangible personal property or a taxable service to
   1-11  a purchaser who acquires the property or service for the purpose of
   1-12  reselling it in the United States of America or a possession or
   1-13  territory of the United States of America or in the United Mexican
   1-14  States in the normal course of business in the form or condition in
   1-15  which it is acquired or as an attachment to or integral part of
   1-16  other tangible personal property or taxable service;
   1-17              (2)  tangible personal property to a purchaser for the
   1-18  sole purpose of the purchaser's leasing or renting it in the United
   1-19  States of America or a possession or territory of the United States
   1-20  of America or in the United Mexican States to another person, but
   1-21  not if incidental to the leasing or renting of real estate;
   1-22              (3)  tangible personal property to a purchaser who
   1-23  acquires the property for the purpose of transferring it in the
   1-24  United States of America or a possession or territory of the United
    2-1  States of America or in the United Mexican States as an integral
    2-2  part of a taxable service; or
    2-3              (4)  a taxable service performed on tangible personal
    2-4  property that is held for sale by the purchaser of the taxable
    2-5  service.
    2-6        SECTION 2.  Section 151.152, Tax Code, is amended by adding
    2-7  Subsection (c) to read as follows:
    2-8        (c)  A resale certificate from a person engaged in business
    2-9  in the United Mexican States reselling the taxable item in the
   2-10  United Mexican States, in addition to the information required in
   2-11  Subsection (b), must state:
   2-12              (1)  the purchaser's United Mexican States federal
   2-13  identification number; and
   2-14              (2)  any other information required by the comptroller.
   2-15        SECTION 3.  Section 151.027(c), Tax Code, is amended to read
   2-16  as follows:
   2-17        (c)  This section does not prohibit:
   2-18              (1)  the examination of information, if authorized by
   2-19  the comptroller, by another state officer or law enforcement
   2-20  officer, by a tax official of another state, by a tax official of
   2-21  the United Mexican States, or by an official of the United States
   2-22  if a reciprocal agreement exists;
   2-23              (2)  the delivery to a taxpayer, or a taxpayer's
   2-24  authorized representative, of a copy of a report or other paper
   2-25  filed by the taxpayer under this chapter;
   2-26              (3)  the publication of statistics classified to
   2-27  prevent the identification of a particular report or items in a
    3-1  particular report;
    3-2              (4)  the use of records, reports, or information
    3-3  secured, derived, or obtained by the attorney general or the
    3-4  comptroller in an action under this chapter against the same
    3-5  taxpayer who furnished the information; or
    3-6              (5)  the delivery to a successor, receiver, executor,
    3-7  administrator, assignee, or guarantor of a taxpayer of information
    3-8  about items included in the measure and amounts of any unpaid tax
    3-9  or amounts of tax, penalties, and interest required to be
   3-10  collected.
   3-11        SECTION 4.  Section 111.006, Tax Code, is amended by amending
   3-12  Subsection (a) and adding Subsection (d) to read as follows:
   3-13        (a)  Except as provided by Subsection (d), the <The>
   3-14  following matter is confidential and may not be used publicly,
   3-15  opened to public inspection, or disclosed except as permitted under
   3-16  Subsection (b) of this section:
   3-17              (1)  a federal tax return or federal tax return
   3-18  information required to have been submitted to the comptroller with
   3-19  a state tax return or report; and
   3-20              (2)  all information secured, derived, or obtained by
   3-21  the comptroller or the attorney general during the course of an
   3-22  examination of the taxpayer's books, records, papers, officers, or
   3-23  employees, including an examination of the business affairs,
   3-24  operations, source of income, profits, losses, or expenditures of
   3-25  the taxpayer.
   3-26        (d)  Information made confidential in this title may be
   3-27  examined by a state officer other than the comptroller, a law
    4-1  enforcement officer of this state, a tax official of another state,
    4-2  a tax official of the United Mexican States, an official of the
    4-3  United States, or an authorized representative of any of these
    4-4  officers or officials, if:
    4-5              (1)  the comptroller authorizes the examination; and
    4-6              (2)  for an official or officer of another state, the
    4-7  United States, or the United Mexican States, a reciprocal agreement
    4-8  exists allowing the comptroller to examine tax information under
    4-9  the control of the officer or official in a manner substantially
   4-10  equivalent to the officer's or official's access to information
   4-11  under this subsection.
   4-12        SECTION 5.  This Act takes effect September 1, 1995.
   4-13        SECTION 6.  The importance of this legislation and the
   4-14  crowded condition of the calendars in both houses create an
   4-15  emergency and an imperative public necessity that the
   4-16  constitutional rule requiring bills to be read on three several
   4-17  days in each house be suspended, and this rule is hereby suspended.