By Corte H.B. No. 2690
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sales tax on coin-operated services.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 151.0045, Tax Code is amended to read as
1-5 follows:
1-6 Sec. 151.0045. Personal Services. Personal services means
1-7 clothes locker rental services as well as those personal services
1-8 listed as personal services under Group 721, Major Group 72 of the
1-9 Standard Industrial Classification Manual, 1972, and includes
1-10 massage parlors, escort services, and Turkish baths under Group 729
1-11 of said manual but does not include any other services listed under
1-12 Group 729 unless otherwise covered under this Act, prepared by the
1-13 statistical policy division of the office on management and budget,
1-14 office of the president of the United States.
1-15 SECTION 2. Section 151.323, Tax Code is amended by adding
1-16 subsection (4) to read as follows:
1-17 Sec. 151.323. Certain Telecommunications Services. There
1-18 are exempted from the taxes imposed by this chapter the receipts
1-19 from the sale, use, or other consumption in this state of:
1-20 (1) long-distance telecommunications services that are
1-21 not both originated from and billed to a telephone number or
1-22 billing or service address within Texas;
1-23 (2) access to a local exchange telephone company's
2-1 network by a regulated provider of telecommunications services; <and>
2-2 (3) broadcasts, other than cable television service,
2-3 by commercial radio or television stations licensed or regulated by
2-4 the Federal Communications Commission<.>; and
2-5 (4) telecommunications services through coin-operated
2-6 machines so long as the amount which can be charged for the service
2-7 activated by coins is limited by law or regulation and the provider
2-8 of pay telephone services is paying sales tax on the charge, or
2-9 equivalent thereof, for interconnection with the local exchange
2-10 network.
2-11 SECTION 3. Section 151.335, Tax Code is amended to read as
2-12 follows:
2-13 Sec. 151.335. Coin-Operated Services. (a) Amusement <and
2-14 personal> services provided through coin-operated machines that are
2-15 operated by the consumer are exempt from the taxes imposed by this
2-16 chapter.
2-17 (b) This section does not apply to the sale of tangible
2-18 personal property or to the purchase of an admission through the
2-19 use of a coin-operated machine.
2-20 SECTION 4. This Act takes effect on September 1, 1995.
2-21 SECTION 5. The importance of this legislation and the
2-22 crowded condition of the calendars in both houses create an
2-23 emergency and an imperative public necessity that the
2-24 constitutional rule requiring bills to be read on three several
2-25 days in each house be suspended, and this rule is hereby suspended.