S.B. No. 640
AN ACT
1-1 relating to the imposition, collection, and enforcement of taxes;
1-2 providing penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (c), Section 111.010, Tax Code, is
1-5 amended to read as follows:
1-6 (c) Venue for and jurisdiction of a suit arising under this
1-7 section is exclusively conferred upon the district courts of Travis
1-8 County.
1-9 SECTION 2. Subsection (c), Section 111.060, Tax Code, is
1-10 amended to read as follows:
1-11 (c) Subsection (b) of this section does not apply to the
1-12 taxes imposed by Chapters 152 and 211 of this code or under an
1-13 agreement made under Section 153.017 of this code.
1-14 SECTION 3. Section 111.101, Tax Code, is amended to read as
1-15 follows:
1-16 Sec. 111.101. Settlement Before Redetermination.
1-17 <(a)> After the comptroller examines a taxpayer's records and
1-18 before a petition for redetermination of the tax is filed, the
1-19 comptroller may settle a claim for a tax, penalty, or interest
1-20 imposed by this title if the cost of collection of the amount due
1-21 would exceed the amount of tax due and if the amount due is not
1-22 more than $300.
1-23 <(b) A settlement under this section is not effective unless
1-24 it is approved by the assistant comptroller for legal services.>
2-1 SECTION 4. Section 111.201, Tax Code, is amended to read as
2-2 follows:
2-3 Sec. 111.201. ASSESSMENT <AND REFUND> LIMITATION. <(a)> No
2-4 tax imposed by this title may be assessed after four years from the
2-5 date that the tax becomes due and payable.
2-6 <(b) No refund of any tax imposed by this title may be made
2-7 by the comptroller after four years after the date that the tax was
2-8 paid, except on tolling of the statute of limitations for refunds
2-9 as provided in this title.>
2-10 SECTION 5. Section 151.0036, Tax Code, is amended by adding
2-11 Subsection (c) to read as follows:
2-12 (c) "Debt collection service" includes the service performed
2-13 for which a fee is collected under Chapter 617, Acts of the 68th
2-14 Legislature, Regular Session, 1983 (Article 9022, Vernon's Texas
2-15 Civil Statutes). The person collecting the check shall add the
2-16 amount of the tax to the fee in accordance with Section 151.052 and
2-17 shall collect the fee from the drawer or endorser of the check.
2-18 SECTION 6. Section 151.0038, Tax Code, is amended to read as
2-19 follows:
2-20 Sec. 151.0038. "INFORMATION SERVICE". (a) "Information
2-21 service" means:
2-22 (1) furnishing general or specialized news or other
2-23 current information, including financial information, unless
2-24 furnished to:
2-25 (A) a newspaper or to a radio or television
2-26 station licensed by the Federal Communications Commission; or
2-27 (B) a member of a homeowners association of a
3-1 residential subdivision or condominium development, and is
3-2 furnished by the association or on behalf of the association; or
3-3 (2) electronic data retrieval or research.
3-4 (b) In this section, "newspaper" has the meaning assigned by
3-5 Section 151.319(f).
3-6 SECTION 7. Sections 151.0047 and 151.0048, Tax Code, are
3-7 amended to read as follows:
3-8 Sec. 151.0047. "REAL PROPERTY REPAIR AND REMODELING".
3-9 (a) "Real property repair and remodeling" means the repair,
3-10 restoration, remodeling, or modification of an improvement to real
3-11 property other than:
3-12 (1) a structure or separate part of a structure used
3-13 as a residence; <or>
3-14 (2) an improvement immediately adjacent to a structure
3-15 described by Subdivision (1) of this section and used in the
3-16 residential occupancy of the structure or separate part of the
3-17 structure by the person using the structure or part as a residence;
3-18 or
3-19 (3) an improvement to a manufacturing or processing
3-20 production unit in a petrochemical refinery or chemical plant that
3-21 provides increased capacity in the production unit.
3-22 (b) In this section:
3-23 (1) "Increased capacity" means the capability to
3-24 produce:
3-25 (A) additional products or services as measured
3-26 by units per hour or units per year; or
3-27 (B) a new product or service.
4-1 (2) "Production unit" means a group of manufacturing
4-2 and processing machines and ancillary equipment that together are
4-3 necessary to create or produce a physical or chemical change
4-4 beginning with the first processing of the raw material and ending
4-5 with the finished product.
4-6 Sec. 151.0048. Real Property Service. (a) Except as
4-7 provided by Subsection (b), "real <"Real> property service" means:
4-8 (1) landscaping;
4-9 (2) the care and maintenance of lawns, yards, or
4-10 ornamental trees or other plants;
4-11 (3) the removal or collection of garbage, rubbish, or
4-12 other solid waste other than:
4-13 (A) hazardous waste;
4-14 (B) industrial solid waste;
4-15 (C) waste material that results from an activity
4-16 associated with the exploration, development, or production of oil,
4-17 gas, geothermal resources, or any other substance or material
4-18 regulated by the Railroad Commission of Texas under Section 91.101,
4-19 Natural Resources Code;
4-20 (D) domestic sewage or an irrigation return
4-21 flow, to the extent the sewage or return flow does not constitute
4-22 garbage or rubbish; and
4-23 (E) industrial discharges subject to regulation
4-24 by permit issued pursuant to Chapter 26, Water Code;
4-25 (4) building or grounds cleaning, janitorial, or
4-26 custodial services;
4-27 (5) a structural pest control service covered by
5-1 Section 2, Texas Structural Pest Control Act (Article 135b-6,
5-2 Vernon's Texas Civil Statutes); or
5-3 (6) the surveying of real property.
5-4 (b) "Real property service" does not include a service
5-5 listed under Subsection (a) if the service is purchased by a
5-6 contractor as part of the improvement of real property with a new
5-7 structure to be used as a residence or other improvement
5-8 immediately adjacent to the new structure and used in the
5-9 residential occupancy of the structure.
5-10 (c) In this section, "contractor" means a person who makes
5-11 an improvement on real estate and who, as a necessary or incidental
5-12 part of the service, incorporates tangible personal property into
5-13 the property improved.
5-14 SECTION 8. Section 151.154, Tax Code, is amended to read as
5-15 follows:
5-16 Sec. 151.154. Resale Certificate: Liability of Purchaser.
5-17 (a) If a purchaser who gives a resale certificate makes any use of
5-18 the taxable item <tangible personal property> other than retention,
5-19 demonstration, or display while holding it for sale, lease, or
5-20 rental in the regular course of business or for transfer as an
5-21 integral part of a taxable service in the regular course of
5-22 business, the purchaser shall be liable for payment of the sales
5-23 tax on the <fair market rental> value of the taxable item for any
5-24 period during which the taxable item <tangible personal property>
5-25 is used other than for retention, demonstration, or display.
5-26 (b) The value of an item of tangible personal property is
5-27 the <The> fair market rental value of the tangible personal
6-1 property, which is the amount that a purchaser would pay on the
6-2 open market to rent or lease the tangible personal property for his
6-3 use. The value of a taxable service is the fair market value of
6-4 the taxable service, which is the amount that a purchaser would pay
6-5 on the open market to obtain the service for the use of the
6-6 purchaser.
6-7 (c) If an <the> item of tangible personal property has no
6-8 fair market rental value or if a taxable service has no fair market
6-9 value, the original purchase price shall be the measure of the tax.
6-10 (d) At any time, the person making the divergent use may
6-11 cease paying tax on the fair market rental value or fair market
6-12 value and may pay sales tax on the original purchase price without
6-13 credit for taxes previously paid <on the fair market rental value>.
6-14 (e) <(b)> A purchaser of a taxable item <tangible personal
6-15 property> who gives a resale certificate is not liable for the tax
6-16 imposed by this chapter if he donates the item <property> to an
6-17 organization exempted under Section 151.309 or 151.310(a)(1) or (2)
6-18 of this code; except that any use by the purchaser of the taxable
6-19 item <property> other than retention, demonstration, or display
6-20 shall be subject to taxes imposed by <Subsection (a) of> this
6-21 section.
6-22 SECTION 9. Section 151.155, Tax Code, is amended to read as
6-23 follows:
6-24 Sec. 151.155. Exemption Certificate. (a) If a purchaser
6-25 certifies in writing to a seller that a taxable item sold, leased,
6-26 or rented to the purchaser will be used in a manner or for a
6-27 purpose that qualifies the sale of the item for an exemption from
7-1 the taxes imposed by this chapter, and if the purchaser then uses
7-2 the item in some other manner or for some other purpose, the
7-3 purchaser is liable for the payment of the sales tax on the <fair
7-4 market rental> value of the taxable item for any period during
7-5 which the item is used in the divergent manner or for the divergent
7-6 purpose.
7-7 (b) The value of an item of tangible personal property is
7-8 the fair market rental value of tangible personal property, which
7-9 is the amount that a purchaser would pay on the open market to rent
7-10 or lease the property for his use. The value of a taxable service
7-11 is the fair market value of the taxable service, which is the
7-12 amount that a purchaser would pay on the open market to obtain the
7-13 service for the use of the purchaser.
7-14 (c) If an <the> item of tangible personal property has no
7-15 fair market rental value or if a taxable service has no fair market
7-16 value, the original purchase price shall be the measure of tax.
7-17 (d) At any time, the person making the divergent use may
7-18 cease paying tax on the fair market rental value or fair market
7-19 value and may pay sales tax on the original purchase price without
7-20 credit for taxes previously paid <on the fair market rental value>.
7-21 (e) <(b)> A purchaser of a taxable item <tangible personal
7-22 property> who gives an exemption certificate is not liable for the
7-23 tax imposed by this chapter if he donates the taxable item
7-24 <property> to an organization exempted under Section 151.309 or
7-25 151.310(a)(1) or (2) of this code; except that any use by the
7-26 purchaser of the taxable item <property> other than retention,
7-27 demonstration, or display shall be subject to taxes imposed by
8-1 <Subsection (a) of> this section.
8-2 SECTION 10. Subsection (f), Section 151.157, Tax Code, is
8-3 amended to read as follows:
8-4 (f) The comptroller may suspend or revoke a license issued
8-5 under this section for good cause. The comptroller may determine
8-6 the length of suspension or revocation necessary for the
8-7 enforcement of this chapter and the comptroller's rules. A
8-8 proceeding to suspend or revoke a license under this subsection is
8-9 a contested case under Chapter 2001, Government Code <the
8-10 Administrative Procedure and Texas Register Act (Article 6252-13a,
8-11 Vernon's Texas Civil Statutes)>. Judicial review is by trial de
8-12 novo. The district courts of Travis County have exclusive original
8-13 jurisdiction of a suit under this section.
8-14 SECTION 11. Subsection (b), Section 151.3111, Tax Code, is
8-15 amended to read as follows:
8-16 (b) Subsection (a) of this section does not apply to the
8-17 performance of a service on:
8-18 (1) tangible personal property that would be exempted
8-19 solely because of the exempt status of the seller of the property;
8-20 (2) tangible personal property that is exempted solely
8-21 because of the application of Section 151.303, 151.304, or 151.306
8-22 of this code;
8-23 (3) motor vehicles, trailers, or semitrailers as
8-24 defined, taxed, or exempted by Chapter 152 of this code; <or>
8-25 (4) a taxable boat or motor as defined by Section
8-26 160.001; or
8-27 (5) machinery and equipment with a purchase price
9-1 greater than $50,000 used exclusively in a commercial timber
9-2 operation as described by Section 151.3161(a).
9-3 SECTION 12. Subsection (a), Section 151.313, Tax Code, is
9-4 amended to read as follows:
9-5 (a) The following items are exempted from the taxes imposed
9-6 by this chapter:
9-7 (1) a drug or medicine, other than insulin, if
9-8 prescribed or dispensed for a human or animal by a licensed
9-9 practitioner of the healing arts;
9-10 (2) insulin;
9-11 (3) a hypodermic syringe or needle;
9-12 (4) a brace; hearing aid or audio loop; orthopedic,
9-13 dental, or prosthetic device; ileostomy, colostomy, or ileal
9-14 bladder appliance; or supplies or replacement parts for the listed
9-15 items;
9-16 (5) a therapeutic appliance, device, and any related
9-17 supplies specifically designed for those products, if dispensed or
9-18 prescribed by a licensed practitioner of the healing arts, when
9-19 those items are purchased and used by an individual for whom the
9-20 items listed in this subdivision were dispensed or prescribed;
9-21 (6) corrective lens and necessary and related
9-22 supplies, if dispensed or prescribed by an ophthalmologist or
9-23 optometrist;
9-24 (7) specialized printing or signalling equipment used
9-25 by the deaf for the purpose of enabling the deaf to communicate
9-26 through the use of an ordinary telephone and all materials, paper,
9-27 and printing ribbons used in that equipment;
10-1 (8) a braille wristwatch, braille writer, braille
10-2 paper and braille electronic equipment that connects to computer
10-3 equipment, and the necessary adaptive devices and adaptive computer
10-4 software; <and>
10-5 (9) each of the following items if purchased for use
10-6 by the blind to enable them to function more independently: a
10-7 slate and stylus, print enlarger, light probe, magnifier, white
10-8 cane, talking clock, large print terminal, talking terminal, or
10-9 harness for guide dog; and
10-10 (10) hospital beds.
10-11 SECTION 13. Subsection (e), Section 151.314, Tax Code, is
10-12 amended to read as follows:
10-13 (e) Food products, candy, carbonated beverages, and diluted
10-14 juices are exempted from the taxes imposed by this chapter if sold
10-15 at an exempt sale qualifying under this subsection or if stored or
10-16 used by the purchaser of the item at the exempt sale. A sale is
10-17 exempted under this subsection if:
10-18 (1) the sale is made by a person under 19 <18> years
10-19 old who is a member of a nonprofit organization devoted to the
10-20 exclusive purpose of education or religious or physical training or
10-21 by a group associated with a public or private elementary or
10-22 secondary school;
10-23 (2) the sale is made as a part of a fund-raising drive
10-24 sponsored by the organization or group; and
10-25 (3) all net proceeds from the sale go to the
10-26 organization or group for its exclusive use.
10-27 SECTION 14. Section 151.316, Tax Code, is amended by
11-1 amending Subsection (a) and by adding Subsections (c) and (d) to
11-2 read as follows:
11-3 (a) The following items are exempted from the taxes imposed
11-4 by this chapter:
11-5 (1) horses, mules, and work animals;
11-6 (2) animal life the products of which ordinarily
11-7 constitute food for human consumption;
11-8 (3) feed for farm and ranch animals;
11-9 (4) feed for animals that are held for sale in the
11-10 regular course of business;
11-11 (5) seeds and annual plants the products of which:
11-12 (A) ordinarily constitute food for human
11-13 consumption;
11-14 (B) are to be sold in the regular course of
11-15 business; or
11-16 (C) are used to produce feed for animals
11-17 exempted by this section;
11-18 (6) fertilizers, fungicides, insecticides, herbicides,
11-19 defoliants, and desiccants exclusively used or employed on a farm
11-20 or ranch in the production of:
11-21 (A) food for human consumption;
11-22 (B) feed for animal life; or
11-23 (C) other agricultural products to be sold in
11-24 the regular course of business;
11-25 (7) machinery and equipment exclusively used or
11-26 employed on a farm or ranch in the building or maintaining of roads
11-27 or water facilities or in the production of:
12-1 (A) food for human consumption;
12-2 (B) grass;
12-3 (C) feed for animal life; or
12-4 (D) other agricultural products to be sold in
12-5 the regular course of business;
12-6 (8) machinery and equipment exclusively used in, and
12-7 pollution control equipment required as a result of, the
12-8 processing, packing, or marketing of agricultural products by an
12-9 <the> original producer at a location operated by the original
12-10 producer <exclusively> for processing, packing, or marketing the
12-11 producer's own products if:
12-12 (A) 50 percent or more of the products
12-13 processed, packed, or marketed at or from the location are produced
12-14 by the original producer and not purchased or acquired from others;
12-15 and
12-16 (B) the producer does not process, pack, or
12-17 market for consideration any agricultural products that belong to
12-18 other persons in an amount greater than five percent of the total
12-19 agricultural products processed, packed, or marketed by the
12-20 producer; and
12-21 (9) ice exclusively used by commercial fishing boats
12-22 in the storing of aquatic species including but not limited to
12-23 shrimp, other crustaceans, finfish, mollusks, and other similar
12-24 creatures.
12-25 (c) In this section:
12-26 (1) "Farm or ranch" includes one or more tracts of
12-27 land used, in whole or in part, in the production of crops,
13-1 livestock, or other agricultural products held for sale in the
13-2 regular course of business. The term includes feedlots, dairy
13-3 farms, poultry farms, commercial orchards, commercial nurseries,
13-4 and similar commercial agricultural operations. The term does not
13-5 include a home garden or a timber operation.
13-6 (2) "Original producer" means a person who:
13-7 (A) brings an agricultural product into being
13-8 and is the owner of the agricultural product from the time it is
13-9 brought into being until it is processed, packed, or marketed; or
13-10 (B) is the grower of an agricultural product,
13-11 exercises predominant operational control over the raising of the
13-12 agricultural product, and bears a risk of loss of investment in the
13-13 agricultural product.
13-14 (d) Two or more corporations that operate agricultural
13-15 activities on the same tract or adjacent tracts of land and that
13-16 are entirely owned by an individual or a combination of the
13-17 individual, the individual's spouse, and the individual's children
13-18 may qualify as an original producer for the purposes of Subsection
13-19 (a)(8).
13-20 SECTION 15. Subchapter H, Chapter 151, Tax Code, is amended
13-21 by adding Section 151.3161 to read as follows:
13-22 Sec. 151.3161. TIMBER OPERATIONS. (a) The first $50,000 of
13-23 the purchase price of each unit of machinery or equipment used
13-24 exclusively in a commercial timber operation to prepare the site,
13-25 plant, cultivate, or harvest timber in the regular course of
13-26 business is exempted from the taxes imposed by this chapter.
13-27 (b) Subsection (a) does not apply to the purchase of
14-1 machinery or equipment through a rental or lease agreement with a
14-2 term of less than 12 months.
14-3 (c) In this section, "machinery or equipment" means only
14-4 complete systems or units that operate or perform a particular
14-5 function independently of other units or components. The term does
14-6 not include:
14-7 (1) repair or replacement parts, modules, accessories,
14-8 or components; or
14-9 (2) handheld manual or power tools, including chain
14-10 saws and axes.
14-11 SECTION 16. Subsection (c), Section 151.317, Tax Code, is
14-12 amended to read as follows:
14-13 (c) In this section:
14-14 (1) "Residential use" means use:
14-15 (A) in a family dwelling or in a multifamily
14-16 apartment or housing complex or building or in a part of a building
14-17 occupied as a home or residence when the use is by the owner of the
14-18 dwelling, apartment, complex, or building or part of the building
14-19 occupied; or
14-20 (B) in a dwelling, apartment, house, or building
14-21 or part of a building occupied as a home or residence when the use
14-22 is by a tenant who occupies the dwelling, apartment, house, or
14-23 building or part of a building under a contract for an express
14-24 initial term for longer than 29 consecutive days.
14-25 (2) "Commercial use" means use by a person engaged in
14-26 selling, warehousing, or distributing a commodity or a professional
14-27 or personal service, but does not include:
15-1 (A) use by a person engaged in:
15-2 (i) processing tangible personal property
15-3 for sale as tangible personal property, other than preparation or
15-4 storage of food for immediate consumption;
15-5 (ii) exploring for, <or> producing, or
15-6 <and> transporting, a material extracted from the earth;
15-7 (iii) agriculture, including dairy or
15-8 poultry operations and pumping for farm or ranch irrigation; <or>
15-9 (iv) electrical processes such as
15-10 electroplating, electrolysis, and cathodic protection; or
15-11 (v) the off-wing processing, overhaul, or
15-12 repair of a jet turbine engine or its parts for a certificated or
15-13 licensed carrier of persons or property; or
15-14 (B) a direct or indirect use, consumption, or
15-15 loss of electricity by an electric utility engaged in the purchase
15-16 of electricity for resale.
15-17 SECTION 17. Section 151.318, Tax Code, is amended by
15-18 amending Subsections (b), (e), (m), and (n) and by adding
15-19 Subsection (q) to read as follows:
15-20 (b) The exemption includes:
15-21 (1) chemicals, catalysts, and other materials that are
15-22 used during a manufacturing, processing, or fabrication operation
15-23 to produce or induce a chemical or physical change, to remove
15-24 impurities, or to make the product more marketable; and
15-25 (2) semiconductor fabrication cleanrooms and
15-26 equipment.
15-27 (e) This section does not apply to any taxable item rented
16-1 or leased for less than one year to a person engaged in
16-2 manufacturing.
16-3 (m) The refund of a portion of the taxes imposed by this
16-4 chapter provided by Subsection (h)(1) and Subsection (n) for
16-5 property purchased during 1990 or 1991 and the reduction in the
16-6 amount of the tax imposed by this chapter provided by Subsections
16-7 (h)(2), (3), <and> (4), and (5) and Subsection (n) for property
16-8 purchased during 1992, 1993, or 1994 do not affect the application
16-9 of <a> sales and use taxes <tax> imposed on the property by a
16-10 political subdivision of this state under Chapter 321, 322, or 323,
16-11 or under any other law.
16-12 (n) A person engaged in overhauling, retrofitting, or
16-13 repairing jet turbine aircraft engines and their component parts is
16-14 entitled to a refund or a reduction in the amount of tax imposed by
16-15 this chapter for the purchase of machinery, equipment, <or>
16-16 replacement parts or accessories with a useful life in excess of
16-17 six months, or supplies, including aluminum oxide, nitric acid, and
16-18 sodium cyanide, used in electrochemical plating or a similar
16-19 process that are used or consumed in the overhauling, retrofitting,
16-20 or repairing. The amount of the refund or reduced amount of tax
16-21 due is the same as provided by Subsection (h) for property covered
16-22 by Subsection (g).
16-23 (q) For purposes of Subsection (b), "semiconductor
16-24 fabrication cleanrooms and equipment" means all tangible personal
16-25 property, without regard to whether the property is affixed to or
16-26 incorporated into realty, used in connection with the
16-27 manufacturing, processing, or fabrication in a cleanroom
17-1 environment of a semiconductor product, without regard to whether
17-2 the property is actually contained in the cleanroom environment.
17-3 The term includes integrated systems, fixtures, and piping, all
17-4 property necessary or adapted to reduce contamination or to control
17-5 airflow, temperature, humidity, chemical purity, or other
17-6 environmental conditions or manufacturing tolerances, and
17-7 production equipment and machinery. The term does not include the
17-8 building or a permanent, nonremovable component of the building,
17-9 that houses the cleanroom environment. The term includes moveable
17-10 cleanroom partitions and cleanroom lighting. "Semiconductor
17-11 fabrication cleanrooms and equipment" are not "intraplant
17-12 transportation equipment" or "used incidentally in a manufacturing,
17-13 processing, or fabrication operation" as those terms are used in
17-14 Subsection (c)(2).
17-15 SECTION 18. Subsection (e), Section 151.319, Tax Code, is
17-16 amended to read as follows:
17-17 (e) The following items are not exempted by Subsection (d)
17-18 of this section:
17-19 (1) machinery or equipment or their accessories or
17-20 replacement parts having a useful life when new in excess of six
17-21 months;
17-22 (2) intraplant transportation equipment, maintenance
17-23 or janitorial supplies or equipment, or other machinery, equipment,
17-24 materials, or supplies that are used incidentally to printing or
17-25 processing;
17-26 (3) hand tools; or
17-27 (4) office equipment or supplies; equipment or
18-1 supplies used in sales, distribution, or transportation activities,
18-2 or in gathering information; or other tangible personal property
18-3 used by a newspaper printer in an activity other than the actual
18-4 printing and processing operation<; or>
18-5 <(5) internal or external wrapping, packing, and
18-6 packaging supplies, as defined by Section 151.302(d), purchased for
18-7 a person's own use, stored for use, or used in wrapping, packing,
18-8 or packaging tangible personal property>.
18-9 SECTION 19. Section 151.342, Tax Code, is amended to read as
18-10 follows:
18-11 Sec. 151.342. AGRIBUSINESS ITEMS. (a) There are exempted
18-12 from the tax imposed by this chapter bins used exclusively as
18-13 containers in transporting fruit or vegetables from the field or
18-14 place of harvest to a location where the items are processed,
18-15 packaged, or marketed.
18-16 (b) There are exempted from the tax imposed by this chapter
18-17 poultry cages used exclusively as containers in transporting
18-18 poultry from a poultry farm to a location where the poultry is
18-19 processed, packaged, or marketed.
18-20 SECTION 20. Section 151.350, Tax Code, is amended to read as
18-21 follows:
18-22 Sec. 151.350. LABOR TO RESTORE <REPAIR> CERTAIN PROPERTY.
18-23 (a) Labor to restore <repair> real or tangible personal property
18-24 is exempted from the taxes imposed by this chapter if:
18-25 (1) the amount of the charge for labor is separately
18-26 itemized; and
18-27 (2) the restoration is performed on <repair is to>
19-1 property damaged within a disaster area by the condition that
19-2 caused the area to be declared a disaster area.
19-3 (b) The exemption under this section does not apply to
19-4 tangible personal property transferred by the service provider to
19-5 the purchaser as part of the service <repair>.
19-6 (c) In this section, "disaster area" means:
19-7 (1) an area declared a disaster area by the governor
19-8 under Chapter 418, Government Code; or
19-9 (2) an area declared a disaster area by the president
19-10 of the United States under 42 U.S.C. Section 5141.
19-11 (d) In this section, "restore" means:
19-12 (1) launder or clean, to the extent the service is a
19-13 personal service as defined in Section 151.0045; and
19-14 (2) repair, restore, or remodel, to the extent the
19-15 service is:
19-16 (A) a real property repair or remodeling service
19-17 as defined in Section 151.0047; or
19-18 (B) defined as a taxable service in Section
19-19 151.0101(5).
19-20 SECTION 21. Section 151.509, Tax Code, is amended to read as
19-21 follows:
19-22 Sec. 151.509. Petition for Redetermination. <(b)> A person
19-23 petitioning for a redetermination of a determination made under
19-24 Section 111.022 <151.506 of this code> must file, before the
19-25 determination becomes final, security as the comptroller requires
19-26 to ensure compliance with this chapter. The security may be sold
19-27 by the comptroller in the manner provided by Subchapter A, Chapter
20-1 111 <Section 151.611 of this code>.
20-2 SECTION 22. Subsection (g), Section 151.712, Tax Code, is
20-3 amended to read as follows:
20-4 (g) A proceeding to impose a civil penalty or suspend or
20-5 revoke a license because of a violation of this section is a
20-6 contested case under Chapter 2001, Government Code <the
20-7 Administrative Procedure and Texas Register Act (Article 6252-13a,
20-8 Vernon's Texas Civil Statutes)>. Judicial review is by trial de
20-9 novo. The district courts of Travis County have exclusive original
20-10 jurisdiction of a suit under this section.
20-11 SECTION 23. Subsections (b) and (d), Section 153.002, Tax
20-12 Code, are amended to read as follows:
20-13 (b) A lessor who is engaged regularly in the business of
20-14 leasing for compensation motor vehicles and equipment he owns to
20-15 carriers or other lessees for interstate operation may be deemed to
20-16 be the user or interstate trucker when he supplies or pays for the
20-17 motor fuel consumed in those vehicles, and the lessor may be issued
20-18 a permit as an interstate trucker when an application has <and bond
20-19 have> been properly filed with and approved by the comptroller.
20-20 (d) A lessor described in Subsection (b) of this section may
20-21 <must> file with his application for an interstate trucker permit
20-22 one copy of the form-lease or service contract he enters into with
20-23 the various lessees of his motor vehicles. When the interstate
20-24 trucker permit has been secured, the lessor may <shall> make and
20-25 assign to each motor vehicle he leases for interstate operation a
20-26 photocopy of the permit to be carried in the cab compartment of the
20-27 motor vehicle. The photocopy of the permit must have typed or
21-1 printed on the back the unit or motor number of the motor vehicle
21-2 to which it is assigned and the name of the lessee. The lessor is
21-3 responsible for the proper use of the photocopy of the permit
21-4 issued and for its return to him with the motor vehicle to which it
21-5 is assigned.
21-6 SECTION 24. Section 153.017, Tax Code, is amended by
21-7 amending Subsections (b) and (f) and by adding Subsections (g) and
21-8 (h) to read as follows:
21-9 (b) An agreement may provide for:
21-10 (1) determining the base state for motor fuel users;
21-11 (2) <,> user records requirements;
21-12 (3) <,> audit procedures;
21-13 (4) <,> exchange of information;
21-14 (5) <,> persons eligible for tax licensing;
21-15 (6) licensing and license revocation procedures,
21-16 permits, penalties, and fees;
21-17 (7) <,> defining qualified motor vehicles;
21-18 (8) <,> determining <if> bonding procedures, types,
21-19 and amounts;
21-20 (9) <is required,> specifying reporting requirements
21-21 and periods;
21-22 (10) defining refund procedures and limitations,
21-23 including the payment of interest;
21-24 (11) <, including> defining uniform penalties, fees,
21-25 <penalty> and interest rates;
21-26 (12) <for late reporting,> determining methods for
21-27 collecting and forwarding of motor fuel taxes, <and> penalties, and
22-1 interest due to another jurisdiction;
22-2 (13) the temporary remittal of funds equal to the
22-3 amount of the taxes, penalties, and interest due to another
22-4 jurisdiction but not otherwise collected, subject to appropriation
22-5 of funds for that purpose; and
22-6 (14) <, and> other provisions to facilitate the
22-7 administration of the agreement.
22-8 (f) An agreement entered into under this section prevails
22-9 over an inconsistent rule of the comptroller. Except as otherwise
22-10 provided by this section, a <A> statute of this state prevails over
22-11 an inconsistent provision of an agreement entered into under this
22-12 section.
22-13 (g) The comptroller may segregate in a separate fund or
22-14 account the amount of motor fuel taxes estimated to be due to other
22-15 jurisdictions or otherwise subject to refund during the fiscal
22-16 year, penalties and interest on those taxes due other
22-17 jurisdictions, licensing fees, and other costs collected under the
22-18 agreement. On a determination of an amount held that is due to be
22-19 remitted to another jurisdiction, the comptroller may issue a
22-20 warrant or make an electronic transfer of the amount as necessary
22-21 to carry out the purposes of the agreement. An auditing cost,
22-22 membership fee, and other cost associated with the agreement may be
22-23 paid from interest earned on funds segregated under this
22-24 subsection. Any interest earnings in excess of the costs
22-25 associated with the agreement shall be credited to general revenue.
22-26 (h) The legislature finds that it is in the public interest
22-27 to enter into motor fuel tax agreements with other jurisdictions
23-1 that may provide for the temporary remittal of amounts due other
23-2 jurisdictions that exceed the amounts collected. The comptroller
23-3 shall ensure that reasonable measures are developed to recover
23-4 motor fuel taxes and other amounts due this state during each
23-5 biennium.
23-6 SECTION 25. Subsection (e), Section 153.116, Tax Code, is
23-7 amended to read as follows:
23-8 (e) In lieu of filing a surety bond, an applicant for a
23-9 permit may substitute the following security:
23-10 (1) cash in the form of U.S. currency in an amount
23-11 equal to the required bond to be deposited in the suspense account
23-12 of the state treasury;
23-13 (2) an assignment to the comptroller of a certificate
23-14 of deposit in any bank or savings and loan association in Texas
23-15 that is a member of the FDIC <or the FSLIC> in an amount at least
23-16 equal to the bond amount required; or
23-17 (3) an irrevocable letter of credit to the comptroller
23-18 from any bank or savings and loan association in Texas that is a
23-19 member of the FDIC <or FSLIC> in an amount of credit at least equal
23-20 to the bond amount required.
23-21 SECTION 26. Section 153.205, Tax Code, is amended by adding
23-22 Subsection (i) to read as follows:
23-23 (i) A permitted supplier may not make a tax-free sale to a
23-24 purchaser using a signed statement:
23-25 (1) for the sale of more than 3,000 gallons of diesel
23-26 fuel in a single transaction; or
23-27 (2) in a calendar month in which the supplier has
24-1 previously sold more than 10,000 gallons of diesel fuel to the
24-2 purchaser.
24-3 SECTION 27. Section 153.205, Tax Code, is amended by adding
24-4 Subsection (j) to read as follows:
24-5 (j)(1) A sale of diesel fuel may be made without collecting
24-6 tax to a purchaser who operates one or more motor vehicles on the
24-7 public highway and who furnishes to a permitted supplier a signed
24-8 statement only as provided in this subsection.
24-9 (2) The statement must stipulate that all the diesel
24-10 fuel will be consumed by the purchaser for purposes other than
24-11 operating a motor vehicle on the public highway and that no diesel
24-12 fuel purchased on a signed statement will be resold or delivered
24-13 into the fuel supply tanks of a motor vehicle.
24-14 (3) Diesel fuel which may be sold without collection
24-15 of tax under this subsection must be of a type that may not be
24-16 legally used by the purchaser for the operation of a motor vehicle
24-17 on the public highway under state or federal law.
24-18 (4) Subsections (a), (c)(3), and (d) of this section
24-19 do not apply to sales of fuel under this subsection.
24-20 SECTION 28. Subsection (f), Section 153.206, Tax Code, is
24-21 amended to read as follows:
24-22 (f) If diesel fuel is purchased, in a single delivery of
24-23 5,000 gallons or more, or in lesser quantities where required by
24-24 city ordinance, by any person for the purpose of resale, the
24-25 seller, distributor, or broker shall sell the product to the
24-26 retailer or any other person purchasing the product on the basis of
24-27 temperature-corrected gallonage to 60 degrees Fahrenheit and the
25-1 tax shall be computed and paid over to the state on the
25-2 temperature-corrected basis. All other sales shall be reported to
25-3 the comptroller on the basis of gross or volumetric gallons of
25-4 taxable diesel fuel <gasoline> sold.
25-5 SECTION 29. Section 153.210, Tax Code, is amended by adding
25-6 Subsection (c) to read as follows:
25-7 (c)(1) A person who holds a diesel prepaid user permit may
25-8 elect to qualify under this subsection for a nonrefundable credit.
25-9 (2) At the time a person applies to renew a diesel
25-10 prepaid user permit, the person may present to the comptroller a
25-11 distribution log reflecting the items of information described in
25-12 Subdivision (6) of this subsection concerning fuel delivered into
25-13 the motor vehicle for which the permit is issued during the period
25-14 covered by the permit.
25-15 (3) The comptroller shall compute the amount of tax
25-16 due on the amount of fuel shown on the log, and if that amount is
25-17 less than the amount paid for the permit, the permit holder shall
25-18 be entitled to a credit for the difference.
25-19 (4) A credit claimed under this section may be applied
25-20 only against the renewal or purchase of another diesel prepaid user
25-21 permit for the following year, and in no case may the amount of the
25-22 credit be refunded.
25-23 (5) The comptroller may require supporting evidence
25-24 and may examine the permit holder's records, either before or after
25-25 issuance of a permit, to determine the amount of tax due. The
25-26 comptroller may by rule prescribe other items of information that a
25-27 person must submit under this subsection.
26-1 (6) Information required to be submitted under this
26-2 subsection includes:
26-3 (A) the date of delivery of the fuel into the
26-4 motor vehicle;
26-5 (B) the number of gallons delivered;
26-6 (C) the odometer reading of the motor vehicle at
26-7 the time of delivery; and
26-8 (D) the state highway license number or motor
26-9 vehicle identification number of the motor vehicle.
26-10 SECTION 30. Subsection (e), Section 153.218, Tax Code, is
26-11 amended to read as follows:
26-12 (e) In lieu of filing a surety bond, an applicant for a
26-13 permit may substitute the following security:
26-14 (1) cash in the form of U.S. currency in an amount
26-15 equal to the required bond to be deposited in the suspense account
26-16 of the state treasury;
26-17 (2) an assignment to the comptroller of a certificate
26-18 of deposit in any bank or savings and loan association in the state
26-19 that is a member of the FDIC <or the FSLIC> in an amount at least
26-20 equal to the bond amount required; or
26-21 (3) an irrevocable letter of credit to the comptroller
26-22 from any bank or savings and loan association in Texas that is a
26-23 member of the FDIC <or FSLIC> in an amount of credit at least equal
26-24 to the bond amount required.
26-25 SECTION 31. Subsection (a), Section 153.220, Tax Code, is
26-26 amended to read as follows:
26-27 (a) A delivery of diesel fuel into the fuel supply tanks of
27-1 a motor vehicle operated for commercial purposes and described by
27-2 Section 153.001(12) <having an aggregate capacity of 60 or more
27-3 gallons> shall be evidenced by an invoice issued in duplicate by a
27-4 dealer or an invoice or a distribution log issued by a bonded user
27-5 or other user.
27-6 SECTION 32. Section 153.304, Tax Code, is amended to read as
27-7 follows:
27-8 Sec. 153.304. Dealer's Permit. A dealer's permit authorizes
27-9 a dealer to collect and remit taxes on liquefied gas delivered into
27-10 the fuel supply tanks of motor vehicles displaying an out-of-state
27-11 license plate, the motor vehicle of an interstate trucker licensed
27-12 under an agreement entered into under Section 153.017, or a motor
27-13 vehicle displaying a motor vehicle dealer's liquefied gas tax
27-14 decal.
27-15 SECTION 33. Section 153.305, Tax Code, is amended by adding
27-16 Subsection (e) to read as follows:
27-17 (e) An interstate trucker is not required to prepay the tax
27-18 under Subsection (a) for a motor vehicle operated for commercial
27-19 purposes and described by Section 153.001(12).
27-20 SECTION 34. Section 153.306, Tax Code, is amended to read as
27-21 follows:
27-22 Sec. 153.306. Interstate Trucker's Permit. An interstate
27-23 trucker's permit authorizes a person who imports <an interstate
27-24 trucker operating a motor vehicle with a base license plate issued
27-25 by a state other than Texas to import> liquefied gas into this
27-26 state in the fuel supply tanks of a motor vehicle <vehicles> owned
27-27 or operated <by him> for commercial purposes and described by
28-1 Section 153.001(12), to report and pay the tax due, and to make
28-2 sales or distributions in Texas from the vehicle's <his> cargo
28-3 tanks, but no delivery may be made in Texas into the fuel supply
28-4 tanks of motor vehicles not bearing a current liquefied gas tax
28-5 decal without first obtaining the required dealer's permit to make
28-6 taxable sales. <The interstate trucker's permit for users
28-7 operating a motor vehicle with a base license plate issued by a
28-8 state other than Texas is in lieu of the liquefied gas tax decal
28-9 permit required to operate motor vehicles on the highways of the
28-10 state.>
28-11 SECTION 35. Section 153.402, Tax Code, is amended to read as
28-12 follows:
28-13 Sec. 153.402. Prohibited Acts; Civil Penalties. A person
28-14 forfeits to the state a civil penalty of not less than $25 nor more
28-15 than $200 if the person:
28-16 (1) refuses to stop and permit the inspection and
28-17 examination of a motor vehicle transporting or using motor fuel on
28-18 demand of a peace officer or the comptroller;
28-19 (2) operates a motor vehicle in this state without a
28-20 valid interstate trucker's or a trip permit when the person is
28-21 required to hold one of those permits;
28-22 (3) operates a liquefied gas-propelled motor vehicle
28-23 that is required to be licensed in Texas, including motor vehicles
28-24 equipped with dual carburetion, and does not display a current
28-25 liquefied gas tax decal or multistate fuels tax agreement decal;
28-26 (4) makes a tax-free sale or delivery of liquefied gas
28-27 into the fuel supply tank of a motor vehicle that does not display
29-1 a current Texas liquefied gas tax decal;
29-2 (5) makes a taxable sale or delivery of liquefied gas
29-3 without holding a valid dealer's permit;
29-4 (6) makes a tax-free sale or delivery of liquefied gas
29-5 into the fuel supply tank of a motor vehicle bearing out-of-state
29-6 license plates;
29-7 (7) makes a <tax-free or taxable sale or> delivery of
29-8 liquefied gas into the fuel supply tank of a motor vehicle bearing
29-9 Texas license plates and no Texas liquefied gas tax decal, unless
29-10 licensed under a multistate fuels tax agreement;
29-11 (8) transports gasoline or diesel fuel in any cargo
29-12 tank that has a connection by pipe, tube, valve, or otherwise with
29-13 the fuel injector or carburetor or with the fuel supply tank
29-14 feeding the fuel injector or carburetor of the motor vehicle
29-15 transporting the product;
29-16 (9) sells or delivers gasoline or diesel fuel from any
29-17 fuel supply tank connected with the fuel injector or carburetor of
29-18 a motor vehicle;
29-19 (10) owns or operates a motor vehicle for which
29-20 reports or mileage records are required by this chapter without an
29-21 operating odometer or other device in good working condition to
29-22 record accurately the miles traveled;
29-23 (11) furnishes a signed statement to a supplier for
29-24 purchasing diesel fuel of a type that may be legally used by the
29-25 purchaser for the operation of a motor vehicle on the public
29-26 highway under state or federal law tax free when he owns, operates,
29-27 or acquires a diesel-powered motor vehicle;
30-1 (12) fails or refuses to comply with or violates a
30-2 provision of this chapter; or
30-3 (13) fails or refuses to comply with or violates a
30-4 comptroller's rule for administering or enforcing this chapter.
30-5 SECTION 36. Section 153.403, Tax Code, is amended to read as
30-6 follows:
30-7 Sec. 153.403. Criminal Offenses. Except as provided by
30-8 Section 153.404 of this code, a person commits an offense if the
30-9 person:
30-10 (1) refuses to stop and permit the inspection and
30-11 examination of a motor vehicle transporting or using motor fuel on
30-12 the demand of a peace officer or the comptroller;
30-13 (2) is required to hold a valid trip permit or
30-14 interstate trucker's permit, but operates a motor vehicle in this
30-15 state without a valid trip permit or interstate trucker's permit;
30-16 (3) operates a liquefied gas-propelled motor vehicle
30-17 that is required to be licensed in Texas, including a motor vehicle
30-18 equipped with dual carburetion, and does not display a current
30-19 liquefied gas tax decal or multistate fuels tax agreement decal;
30-20 (4) transports gasoline or diesel fuel in any cargo
30-21 tank that has a connection by pipe, tube, valve, or otherwise with
30-22 the fuel injector or carburetor or with the fuel supply tank
30-23 feeding the fuel injector or carburetor of the motor vehicle
30-24 transporting the product;
30-25 (5) sells or delivers gasoline or diesel fuel from a
30-26 fuel supply tank that is connected with the fuel injector or
30-27 carburetor of a motor vehicle;
31-1 (6) owns or operates a motor vehicle for which reports
31-2 or mileage records are required by this chapter without an
31-3 operating odometer or other device in good working condition to
31-4 record accurately the miles traveled;
31-5 (7) as a diesel tax prepaid user fails to prepay the
31-6 tax on every diesel-powered motor vehicle owned or operated by him;
31-7 (8) makes a tax-free sale or delivery of liquefied gas
31-8 into the fuel supply tank of a motor vehicle that does not display
31-9 a current Texas liquefied gas tax decal;
31-10 (9) makes a sale or delivery of liquefied gas on which
31-11 the person knows the tax is required to be collected, if at the
31-12 time the sale is made the person does not hold a valid dealer's
31-13 permit;
31-14 (10) makes a tax-free sale or delivery of liquefied
31-15 gas into the fuel supply tank of a motor vehicle bearing
31-16 out-of-state license plates;
31-17 (11) makes a <tax-free or taxable sale or> delivery of
31-18 liquefied gas into the fuel supply tank of a motor vehicle bearing
31-19 Texas license plates and no Texas liquefied gas tax decal, unless
31-20 licensed under a multistate fuels tax agreement;
31-21 (12) refuses to permit the comptroller or the attorney
31-22 general to inspect, examine, or audit a book or record required to
31-23 be kept by a distributor, supplier, user, dealer, interstate
31-24 trucker, aviation fuel dealer, jobber, common or contract carrier,
31-25 or any person required to hold a permit under this chapter;
31-26 (13) refuses to permit the comptroller or the attorney
31-27 general to inspect or examine any plant, equipment, materials, or
32-1 premises where motor fuel is produced, processed, stored, sold,
32-2 delivered, or used;
32-3 (14) refuses to permit the comptroller or the attorney
32-4 general to measure or gauge the contents of or take samples from a
32-5 storage tank or container on premises where motor fuel is produced,
32-6 processed, stored, sold, delivered, or used;
32-7 (15) is a distributor, bonded user, interstate
32-8 trucker, or supplier and fails or refuses to make or deliver to the
32-9 comptroller a report required by this chapter to be made and
32-10 delivered to the comptroller;
32-11 (16) conceals motor fuel with the intent of engaging
32-12 in any conduct proscribed by this chapter or refuses to make sales
32-13 of motor fuel on the volume-corrected basis prescribed by this
32-14 chapter;
32-15 (17) refuses, while transporting motor fuel, to stop
32-16 the motor vehicle he is operating when called on to do so by a
32-17 person authorized to stop the motor vehicle;
32-18 (18) refuses to surrender a motor vehicle and cargo
32-19 for impoundment after being ordered to do so by a person authorized
32-20 to impound the motor vehicle and cargo;
32-21 (19) transports motor fuel for which a cargo manifest
32-22 is required to be carried without possessing or exhibiting on
32-23 demand by an officer authorized to make the demand a cargo manifest
32-24 containing the information required to be shown on the manifest;
32-25 (20) mutilates, destroys, or secretes a book or record
32-26 required by this chapter to be kept by a distributor, supplier,
32-27 user, dealer, interstate trucker, aviation fuel dealer, jobber, or
33-1 person required to hold a permit under this chapter;
33-2 (21) is a distributor, supplier, user, dealer,
33-3 interstate trucker, aviation fuel dealer, jobber, or other person
33-4 required to hold a permit under this chapter, or the agent or
33-5 employee of one of those persons and makes a false entry or fails
33-6 to make an entry in the books and records required under this
33-7 chapter to be made by the person;
33-8 (22) transports in any manner motor fuel under a false
33-9 cargo manifest;
33-10 (23) engages in a motor fuel transaction that requires
33-11 that the person have a permit under this chapter without then and
33-12 there holding the required permit;
33-13 (24) makes and delivers to the comptroller a report
33-14 required under this chapter to be made and delivered to the
33-15 comptroller, if the report contains false information;
33-16 (25) forges, falsifies, or alters an invoice
33-17 prescribed by law;
33-18 (26) makes any statement, knowing said statement to be
33-19 false, in a claim for a tax refund filed with the comptroller;
33-20 (27) furnishes to a supplier a signed statement for
33-21 purchasing diesel fuel of a type that may be legally used by the
33-22 purchaser for the operation of a motor vehicle on the public
33-23 highway under state or federal law tax free when he owns, operates,
33-24 or acquires a diesel-powered motor vehicle;
33-25 (28) holds an aviation fuel dealer's permit and makes
33-26 a taxable sale or use of any gasoline or diesel fuel;
33-27 (29) fails to remit any tax funds collected by a
34-1 distributor, supplier, user, dealer, interstate trucker, jobber, or
34-2 any other person required to hold a permit under this chapter;
34-3 (30) makes a sale of diesel fuel tax free into a
34-4 storage facility of a person who:
34-5 (A) is not permitted as a supplier, as an
34-6 aviation fuel dealer, as a bonded user, or as a diesel tax prepaid
34-7 user of diesel fuel; or
34-8 (B) does not furnish to the permitted supplier a
34-9 signed statement prescribed in Section 153.205 of this code;
34-10 (31) makes a sale of gasoline tax free to any person
34-11 who is not permitted as either a distributor or an aviation fuel
34-12 dealer;
34-13 (32) is a dealer who purchases any motor fuel tax free
34-14 when not authorized to make a tax-free purchase under this chapter;
34-15 or
34-16 (33) is a dealer who purchases motor fuel with the
34-17 intent to evade any tax imposed by this chapter.
34-18 SECTION 37. Subsection (d), Section 154.042, Tax Code, is
34-19 amended to read as follows:
34-20 (d) A plan for achieving compliance that is submitted to the
34-21 treasurer under Subsection (c) is confidential and not subject to
34-22 the open records law, Chapter 552, Government Code <424, Acts of
34-23 the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
34-24 Vernon's Texas Civil Statutes)>.
34-25 SECTION 38. Subsection (m), Section 154.051, Tax Code, is
34-26 amended to read as follows:
34-27 (m) Information provided under Subsection (f) is
35-1 confidential and not subject to the open records law, Chapter 552,
35-2 Government Code <424, Acts of the 63rd Legislature, Regular
35-3 Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes)>.
35-4 SECTION 39. Subsection (g), Section 154.101, Tax Code, is
35-5 amended to read as follows:
35-6 (g) All financial information provided under this section is
35-7 confidential and not subject to the open records law, Chapter 552,
35-8 Government Code <424, Acts of the 63rd Legislature, Regular
35-9 Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes)>.
35-10 SECTION 40. Section 154.114, Tax Code, is amended to read as
35-11 follows:
35-12 Sec. 154.114. FINAL Suspension or Revocation of a Permit.
35-13 (a) The treasurer may suspend or revoke a person's <distributor's,
35-14 wholesaler's, bonded agent's, or retailer's> permit if the
35-15 treasurer finds, after notice and hearing as provided by this
35-16 section, that the permit holder violated this chapter or an
35-17 administrative rule made under this chapter.
35-18 (b) If the treasurer intends to suspend or revoke a permit,
35-19 the treasurer shall provide the permit holder with written notice
35-20 that includes a statement:
35-21 (1) of the reason for the intended revocation or
35-22 suspension;
35-23 (2) that the permit holder is entitled to a hearing by
35-24 the treasurer on the proposed suspension or revocation of the
35-25 permit; and
35-26 (3) of the date, time, and place of the hearing.
35-27 (c) The treasurer shall mail the written notice by certified
36-1 mail, return receipt requested, to the permit holder's mailing
36-2 address as it appears on the treasurer's records <place designated
36-3 on the application for a permit as the place of business>. Service
36-4 by mail is complete when the notice is received, as evidenced by
36-5 return receipt from the U. S. Postal Service.
36-6 (d) The treasurer shall give the permit holder not less than
36-7 10 days' notice of a final <may not schedule the> hearing <before
36-8 the 10th working day after the date the permit holder received the
36-9 notice>.
36-10 (e) A permit holder may appeal the decision of the treasurer
36-11 to a district court in Travis County not later than the 30th day
36-12 after the date the treasurer's decision becomes final.
36-13 (f) A person whose permit is suspended or revoked may not
36-14 sell, offer for sale, or distribute cigarettes from the place of
36-15 business to which the permit applied until a new permit is granted
36-16 or the suspension is removed.
36-17 (g) If the treasurer suspends or revokes a permit, the
36-18 treasurer shall provide written notice of the suspension or
36-19 revocation, within a reasonable time, to each permit holder in the
36-20 state. A permit holder violates Section 154.1015(a) by selling or
36-21 distributing cigarettes to a person whose permit has been suspended
36-22 or revoked only after the permit holder receives written notice of
36-23 the suspension or revocation from the treasurer.
36-24 SECTION 41. Subchapter D, Chapter 154, Tax Code, is amended
36-25 by adding Section 154.1141 to read as follows:
36-26 Sec. 154.1141. Summary Suspension of a Permit. (a) The
36-27 treasurer may suspend a person's permit without notice or a hearing
37-1 for the person's failure to comply with this chapter or a rule
37-2 adopted under this chapter if the person's continued operation
37-3 constitutes an immediate and substantial threat to the collection
37-4 of taxes imposed by this chapter and attributable to the person's
37-5 operation.
37-6 (b) If the treasurer summarily suspends a person's permit,
37-7 proceedings for a preliminary hearing before the treasurer or the
37-8 treasurer's representative must be initiated simultaneously with
37-9 the summary suspension. The preliminary hearing shall be set for a
37-10 date not later than 10 days after the date of the summary
37-11 suspension, unless the parties agree to a later date.
37-12 (c) At the preliminary hearing, the permit holder must show
37-13 cause why the permit should not remain suspended pending a final
37-14 hearing on suspension or revocation.
37-15 (d) Chapter 2001, Government Code, does not apply to a
37-16 summary suspension under this section.
37-17 (e) To initiate a proceeding to suspend summarily a person's
37-18 permit, the treasurer shall serve notice on the permit holder
37-19 informing the permit holder of the right to a preliminary hearing
37-20 before the treasurer or the treasurer's representative and of the
37-21 time and place of the preliminary hearing. The notice must be
37-22 personally served on the permit holder or an officer, employee, or
37-23 agent of the permit holder or sent by certified or registered mail,
37-24 return receipt requested, to the permit holder's mailing address as
37-25 it appears in the treasurer's records. The notice must state the
37-26 alleged violations that constitute the grounds for summary
37-27 suspension. The suspension is effective at the time the notice is
38-1 served. If the notice is served in person, the permit holder shall
38-2 immediately surrender the permit to the treasurer or the
38-3 treasurer's representative. If notice is served by mail, the
38-4 permit holder shall immediately return the permit to the treasurer.
38-5 (f) Section 154.114, governing hearings for final suspension
38-6 or revocation of a permit under this chapter, governs a final
38-7 administrative hearing under this section.
38-8 SECTION 42. Section 154.1145, Tax Code, is amended to read
38-9 as follows:
38-10 Sec. 154.1145. Hearings. Unless otherwise provided by this
38-11 chapter, the <The> treasurer shall conduct all hearings required by
38-12 this chapter in accordance with Chapter 2001, Government Code <the
38-13 Administrative Procedure and Texas Register Act (Article 6252-13a,
38-14 Vernon's Texas Civil Statutes)>. The treasurer may designate one
38-15 or more representatives to conduct the hearings and may prescribe
38-16 the rules of procedure governing the hearings.
38-17 SECTION 43. Section 154.201, Tax Code, is amended to read as
38-18 follows:
38-19 Sec. 154.201. Record of Purchase or Receipt. Each
38-20 distributor, wholesaler, <and> bonded agent, and export warehouse
38-21 shall keep records at each place of business of all cigarettes
38-22 purchased or <and> received, including records of those cigarettes
38-23 for which no tax is due under federal law. Each retailer shall
38-24 keep records at a single location, which the retailer shall
38-25 designate as its principal place of business in this state, of all
38-26 cigarettes purchased and received. These records must include:
38-27 (1) the name and address of the shipper or carrier and
39-1 the mode of transportation;
39-2 (2) all shipping records or copies of records,
39-3 including invoices, bills of lading, waybills, freight bills, and
39-4 express receipts;
39-5 (3) the date and the name of the place of origin of
39-6 the cigarette shipment;
39-7 (4) the date and the name of the place of arrival of
39-8 the cigarette shipment;
39-9 (5) a statement of the number, kind, and price paid
39-10 for cigarettes, including cigarettes in stamped and unstamped
39-11 packages;
39-12 (6) the name, address, permit number, and tax
39-13 identification number of the seller; and
39-14 (7) any other information required by rules of the
39-15 treasurer.
39-16 SECTION 44. Section 154.301, Tax Code, is amended to read as
39-17 follows:
39-18 Sec. 154.301. COMPLIANCE INVESTIGATION AND RECOVERY OF
39-19 <AUDIT> COSTS. (a) If the treasurer has reason to believe that a
39-20 person has failed to pay a tax or penalty in the proper manner when
39-21 due, as required by this chapter, or otherwise failed to comply
39-22 with this chapter, the treasurer may employ auditors and
39-23 investigators to determine compliance and any <the> amount due. If
39-24 the treasurer determines that the person has not paid the tax or
39-25 penalty or has failed to comply with this chapter, the treasurer
39-26 may require the person to <shall> pay the reasonable expenses
39-27 incurred for the compliance investigation and audit as an
40-1 additional penalty.
40-2 (b) The treasurer shall deposit funds paid under this
40-3 section to the credit of the general revenue <a special> fund in
40-4 the treasury to be used for making audits, conducting
40-5 investigations, or as otherwise appropriated. The treasurer may
40-6 use other funds available for audits as appropriated by the
40-7 legislature <when the special fund is exhausted>.
40-8 SECTION 45. Subsection (a), Section 154.304, Tax Code, is
40-9 amended to read as follows:
40-10 (a) To determine the tax liability of a person dealing in
40-11 cigarettes or compliance by the person with this chapter, the
40-12 treasurer may:
40-13 (1) inspect any premises, including a vending machine
40-14 and its contents, where cigarettes are manufactured, produced,
40-15 stored, transported, sold, or offered for sale or exchange;
40-16 (2) remain on the premises as long as necessary to
40-17 determine the tax liability or compliance with this chapter;
40-18 (3) examine the records required by this chapter or
40-19 other records, books, documents, papers, accounts, and objects that
40-20 the treasurer determines are necessary for conducting a complete
40-21 examination; and
40-22 (4) examine stocks of cigarettes and cigarette stamps.
40-23 SECTION 46. Section 154.308, Tax Code, is amended to read as
40-24 follows:
40-25 Sec. 154.308. DEFICIENCY DETERMINATION, PENALTIES, AND
40-26 INTEREST. (a) If the treasurer has reasonable cause to believe
40-27 that a tax report or the amount of tax paid is inaccurate, the
41-1 treasurer may compute and determine the amount of tax, penalty, and
41-2 interest to be paid from information contained in the report or
41-3 from any other information available to the treasurer.
41-4 (b) On making a deficiency determination, the treasurer
41-5 shall notify the person by certified mail, return receipt
41-6 requested. Service by mail is complete when the notice is
41-7 received, as evidenced by return receipt from the U.S. Postal
41-8 Service.
41-9 SECTION 47. Subsection (g), Section 155.041, Tax Code, is
41-10 amended to read as follows:
41-11 (g) All financial information provided under this section is
41-12 confidential and not subject to the open records law, Chapter 552,
41-13 Government Code <424, Acts of the 63rd Legislature, Regular
41-14 Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes)>.
41-15 SECTION 48. Section 155.059, Tax Code, is amended to read as
41-16 follows:
41-17 Sec. 155.059. FINAL SUSPENSION OR REVOCATION OF PERMIT.
41-18 (a) The treasurer may revoke or suspend a person's <distributor's,
41-19 wholesaler's, bonded agent's, or retailer's> permit if the
41-20 treasurer finds, after notice and hearing as provided by this
41-21 section, that the permit holder violated this chapter or an
41-22 administrative rule made under this chapter.
41-23 (b) If the treasurer intends to suspend or revoke a permit,
41-24 the treasurer shall provide the permit holder with written notice
41-25 that includes a statement:
41-26 (1) of the reason for the intended revocation or
41-27 suspension;
42-1 (2) that the permit holder is entitled to a hearing by
42-2 the treasurer on the proposed suspension or revocation; and
42-3 (3) of the date, time, and place of the hearing.
42-4 (c) The treasurer shall mail the written notice by certified
42-5 mail, return receipt requested, to the permit holder's mailing
42-6 address as it appears in the treasurer's records <place designated
42-7 on the application for a permit as the place of business>. Service
42-8 by mail is complete when the notice is received, as evidenced by
42-9 the return receipt from the United States Postal Service.
42-10 (d) The treasurer shall give the permit holder not less than
42-11 10 days' notice of a final <may not schedule the> hearing <before
42-12 the 10th working day after the date the permit holder received the
42-13 notice>.
42-14 (e) A permit holder may appeal the decision of the treasurer
42-15 to a district court in Travis County not later than the 30th day
42-16 after the date the treasurer's decision becomes final.
42-17 (f) A person whose permit is suspended or revoked may not
42-18 sell, offer for sale, or distribute tobacco products from the place
42-19 of business to which the permit applied until a new permit is
42-20 granted or the suspension is removed.
42-21 (g) If the treasurer suspends or revokes a permit, the
42-22 treasurer shall provide written notice of the suspension or
42-23 revocation, within a reasonable time, to each permit holder in the
42-24 state. A permit holder violates Section 155.0415(a) by selling or
42-25 distributing tobacco products to a person whose permit has been
42-26 suspended or revoked only after the permit holder receives written
42-27 notice of the suspension or revocation from the treasurer.
43-1 SECTION 49. Subchapter C, Chapter 155, Tax Code, is amended
43-2 by adding Section 155.0591 to read as follows:
43-3 Sec. 155.0591. SUMMARY SUSPENSION OF A PERMIT. (a) The
43-4 treasurer may suspend a person's permit without notice or a hearing
43-5 for the person's failure to comply with this chapter or a rule
43-6 adopted under this chapter if the person's continued operation
43-7 constitutes an immediate and substantial threat to the collection
43-8 of taxes imposed by this chapter and attributable to the person's
43-9 operation.
43-10 (b) If the treasurer summarily suspends a person's permit,
43-11 proceedings for a preliminary hearing before the treasurer or the
43-12 treasurer's representative must be initiated simultaneously with
43-13 the summary suspension. The preliminary hearing shall be set for a
43-14 date not later than 10 days after the date of the summary
43-15 suspension, unless the parties agree to a later date.
43-16 (c) At the preliminary hearing, the permit holder must show
43-17 cause why the permit should not remain suspended pending a final
43-18 hearing on suspension or revocation.
43-19 (d) Chapter 2001, Government Code, does not apply to a
43-20 summary suspension under this section.
43-21 (e) To initiate a proceeding to suspend summarily a person's
43-22 permit, the treasurer shall serve notice on the permit holder
43-23 informing the permit holder of the right to a preliminary hearing
43-24 before the treasurer or the treasurer's representative and of the
43-25 time and place of the preliminary hearing. The notice must be
43-26 personally served on the permit holder or an officer, employee, or
43-27 agent of the permit holder or sent by certified or registered mail,
44-1 return receipt requested, to the permit holder's mailing address as
44-2 it appears in the treasurer's records. The notice must state the
44-3 alleged violations that constitute the grounds for summary
44-4 suspension. The suspension is effective at the time the notice is
44-5 served. If notice is served in person, the permit holder shall
44-6 immediately surrender the permit to the treasurer. If notice is
44-7 served by mail, the permit holder shall immediately return the
44-8 permit to the treasurer.
44-9 (f) Section 155.059, governing hearings for final suspension
44-10 or revocation of a permit under this chapter, governs a final
44-11 administrative hearing.
44-12 SECTION 50. Section 155.0595, Tax Code, is amended to read
44-13 as follows:
44-14 Sec. 155.0595. Hearings. Unless otherwise provided by this
44-15 chapter, the <The> treasurer shall conduct all hearings required by
44-16 this chapter in accordance with Chapter 2001, Government Code <the
44-17 Administrative Procedure and Texas Register Act (Article 6252-13a,
44-18 Vernon's Texas Civil Statutes)>. The treasurer may designate one
44-19 or more representatives to conduct the hearings and may prescribe
44-20 the rules of procedure governing the hearings.
44-21 SECTION 51. Section 155.101, Tax Code, is amended to read as
44-22 follows:
44-23 Sec. 155.101. Record of Purchase or Receipt. Each
44-24 distributor, wholesaler, <and> bonded agent, and export warehouse
44-25 shall keep records at each place of business of all tobacco
44-26 products purchased or <and> received. Each retailer shall keep
44-27 records at a single location, which the retailer shall designate as
45-1 its principal place of business in the state, of all tobacco
45-2 products purchased and received. These records must include:
45-3 (1) the name and address of the shipper or carrier and
45-4 the mode of transportation;
45-5 (2) all shipping records or copies of records,
45-6 including invoices, bills of lading, waybills, freight bills, and
45-7 express receipts;
45-8 (3) the date and the name of the place of origin of
45-9 the tobacco product shipment;
45-10 (4) the date and the name of the place of arrival of
45-11 the tobacco product shipment;
45-12 (5) a statement of the number, kind, and price paid
45-13 for the tobacco products;
45-14 (6) the name, address, permit number, and tax
45-15 identification number of the seller; and
45-16 (7) any other information required by rules of the
45-17 treasurer.
45-18 SECTION 52. Section 155.181, Tax Code, is amended to read as
45-19 follows:
45-20 Sec. 155.181. COMPLIANCE INVESTIGATION AND RECOVERY OF
45-21 <AUDIT> COSTS. (a) If the treasurer has reason to believe that a
45-22 person has failed to pay a tax or penalty in the proper manner when
45-23 due or otherwise failed to comply with<, as required by> this
45-24 chapter, the treasurer may employ auditors and investigators to
45-25 determine compliance and any <the> amount due. If the treasurer
45-26 determines that the person has not paid the tax or penalty or has
45-27 failed to comply with this chapter, the treasurer may require the
46-1 person to <shall> pay the reasonable expenses incurred in the
46-2 compliance investigation and audit as an additional penalty.
46-3 (b) The treasurer shall deposit funds paid under this
46-4 section to the credit of the general revenue <a special> fund in
46-5 the treasury to be used for making audits, conducting
46-6 investigations, or as otherwise appropriated. The comptroller
46-7 <treasurer> may use other funds available for audits as
46-8 appropriated by the legislature <when the special fund is
46-9 exhausted>.
46-10 SECTION 53. Subsection (a), Section 155.183, Tax Code, is
46-11 amended to read as follows:
46-12 (a) To determine the tax liability of a person dealing in
46-13 tobacco products or compliance by the person with this chapter, the
46-14 treasurer may:
46-15 (1) inspect any premises, including a vending machine
46-16 and its contents, where tobacco products are manufactured,
46-17 produced, stored, transported, sold, or offered for sale or
46-18 exchange;
46-19 (2) remain on the premises as long as necessary to
46-20 determine the tax liability or compliance with this chapter;
46-21 (3) examine the records required by this chapter or
46-22 other records, books, documents, papers, accounts, and objects that
46-23 the treasurer determines are necessary for conducting a complete
46-24 examination; and
46-25 (4) examine stocks of tobacco products.
46-26 SECTION 54. Section 155.185, Tax Code, is amended to read as
46-27 follows:
47-1 Sec. 155.185. DEFICIENCY DETERMINATION, PENALTIES, AND
47-2 INTEREST. (a) If the treasurer has reasonable cause to believe
47-3 that a tax report or the amount of tax is inaccurate, the treasurer
47-4 may compute and determine the amount of tax, penalty, and interest
47-5 to be paid from information contained in the report or from any
47-6 other information available to the treasurer.
47-7 (b) On making a deficiency determination, the treasurer
47-8 shall notify the person by certified mail, return receipt
47-9 requested. Service by mail is complete when the notice is
47-10 received, as evidenced by return receipt from the U.S. Postal
47-11 Service.
47-12 SECTION 55. Section 155.212, Tax Code, is amended to read as
47-13 follows:
47-14 Sec. 155.212. Books and Records. A person commits an
47-15 offense if the person:
47-16 (1) knowingly makes, delivers to, and files with the
47-17 treasurer a false return or an incomplete return or report;
47-18 (2) knowingly fails to make and deliver to the
47-19 treasurer a return or report as required by this chapter;
47-20 (3) destroys, mutilates, or conceals a book or record
47-21 required by this chapter;
47-22 (4) refuses to permit the attorney general or the
47-23 treasurer to inspect and audit books and records that are required
47-24 by this chapter or that are incidental to the conduct of the
47-25 tobacco products business;
47-26 (5) knowingly makes a false entry or fails to make
47-27 entries in the books and records required by this chapter; or
48-1 (6) fails to keep books and records for four years as
48-2 required by this chapter.
48-3 SECTION 56. Section 156.001, Tax Code, is amended to read as
48-4 follows:
48-5 Sec. 156.001. Definition. In this chapter, "hotel" means a
48-6 building in which members of the public obtain sleeping
48-7 accommodations for consideration. The term includes a hotel,
48-8 motel, tourist home, tourist house, tourist court, lodging house,
48-9 inn, or rooming house. The term<, but> does not include:
48-10 (1) a hospital, sanitarium, or nursing home; or
48-11 (2) a dormitory or other housing facility owned or
48-12 leased and operated by an institution of higher education or a
48-13 private or independent institution of higher education as those
48-14 terms are defined by Section 61.003, Education Code, used by the
48-15 institution for the purpose of providing sleeping accommodations
48-16 for persons engaged in an educational program or activity at the
48-17 institution.
48-18 SECTION 57. Subsections (f), (g), (h), and (i), Section
48-19 159.101, Tax Code, are amended to read as follows:
48-20 (f) <When the comptroller makes an assessment under this
48-21 chapter, the comptroller shall issue a determination stating the
48-22 amount and that the tax collection is in jeopardy. The amount
48-23 determined is due and payable immediately. A determination made
48-24 under this chapter becomes final on the expiration of 20 days after
48-25 the day on which the notice of the determination was served by
48-26 personal service or by mail unless a petition for a redetermination
48-27 is filed before the determination becomes final.>
49-1 <(g)> If a determination made under this chapter becomes
49-2 final without payment of the amount of the determination being
49-3 made, the comptroller shall add to the amount a penalty of 10
49-4 percent of the amount of the tax and interest.
49-5 (g) <(h)> In a redetermination proceeding held or a judicial
49-6 proceeding brought under this chapter, a certificate from the
49-7 comptroller that shows the issued determination is prima facie
49-8 evidence of:
49-9 (1) the determination of the stated tax or amount of
49-10 the tax;
49-11 (2) the stated amount of the penalties and interest;
49-12 and
49-13 (3) the compliance of the comptroller with this
49-14 chapter in computing and determining the amount due.
49-15 (h) <(i)> The suppression of evidence on any ground in a
49-16 criminal case that arises out of facts on which a determination is
49-17 made under this chapter or the dismissal of criminal charges in
49-18 such a case does not affect a determination made under this
49-19 chapter.
49-20 SECTION 58. Section 159.103, Tax Code, is amended to read as
49-21 follows:
49-22 Sec. 159.103. Exemption. The possession, purchase,
49-23 acquisition, importation, manufacture, or production of a taxable
49-24 substance is exempt from the tax imposed by this chapter if the
49-25 activity is authorized by law.
49-26 SECTION 59. The heading to Subchapter C, Chapter 159, Tax
49-27 Code, is amended to read as follows:
50-1 SUBCHAPTER C. CRIMINAL PROVISIONS<; SEIZURE AND FORFEITURE>
50-2 SECTION 60. Section 159.203, Tax Code, is amended to read as
50-3 follows:
50-4 Sec. 159.203. PREVIOUSLY USED CERTIFICATES. (a) A person
50-5 commits an offense if the person:
50-6 (1) uses, sells, offers for sale, or possesses for use
50-7 or sale previously used tax payment certificates; or
50-8 (2) attaches or causes to be attached a previously
50-9 used tax payment certificate to a taxable substance.
50-10 (b) An offense under this section is a felony of the third
50-11 degree.
50-12 (c) Venue of a prosecution under this section is in Travis
50-13 County.
50-14 SECTION 61. Section 159.205, Tax Code, is amended to read as
50-15 follows:
50-16 Sec. 159.205. RIGHT TO COLLECT SUBORDINATE TO OTHER LAWS
50-17 <FORFEITURE>. (a) <Property seized under Section 159.204 of this
50-18 code is subject to forfeiture to the state in the same manner as
50-19 provided for forfeiture of seized property under Chapter 103,
50-20 Alcoholic Beverage Code. Property forfeited to the state that is
50-21 not ordered destroyed may be used by the seizing agency for
50-22 official purposes or sold at public auction in the manner provided
50-23 by law for sheriff's sales. The proceeds from the sale of property
50-24 forfeited under this section, after satisfaction of all costs,
50-25 shall be disposed of in the manner provided for by Article 59.06,
50-26 Code of Criminal Procedure.>
50-27 <(b)> The right of the comptroller to collect the tax
51-1 imposed by this chapter, including applicable penalty and interest,
51-2 is subordinate to the right of a federal, state, or local law
51-3 enforcement authority to seize, forfeit, and retain property under
51-4 Chapter 481, Health and Safety Code; Chapter 59, Code of Criminal
51-5 Procedure; or any other criminal forfeiture law of this state or of
51-6 the United States. A lien filed by the comptroller as a result of
51-7 the failure of a dealer to pay the tax, penalty, or interest due
51-8 under this chapter is also subordinate to those rights.
51-9 (b) This section does not affect the validity of a lien or a
51-10 collection action relating to the tax imposed by this chapter under
51-11 any other circumstance.
51-12 SECTION 62. Section 159.206, Tax Code, is amended to read as
51-13 follows:
51-14 Sec. 159.206. Settlement or Compromise of Tax. <(a)> The
51-15 comptroller may settle or compromise a tax, penalty, or interest
51-16 imposed under this chapter only if:
51-17 (1) the prosecutor of a criminal offense under this
51-18 chapter or of another offense arising out of the same incident or
51-19 transaction requests in writing that the comptroller settle or
51-20 compromise and specifies the reasons for the request; and
51-21 (2) the comptroller determines that the settlement or
51-22 compromise is in the best interest of the state.
51-23 <(b) The prosecutor of a criminal offense under this chapter
51-24 or of another criminal offense arising out of the same incident or
51-25 transaction or the taxpayer or the taxpayer's representative may
51-26 request in writing that the comptroller defer an administrative
51-27 hearing on a determination made on this chapter until a trial has
52-1 been completed in the criminal case involving the same incident or
52-2 transaction or another disposition has been made of the case. The
52-3 comptroller may comply with a request to defer an administrative
52-4 hearing if the comptroller determines that the deferral would be in
52-5 the best interest of the state. This subsection does not prohibit
52-6 the comptroller from filing a lien or taking any other action to
52-7 collect the tax in the manner permitted under this code before the
52-8 conclusion of an administrative hearing.>
52-9 SECTION 63. Section 201.201, Tax Code, is amended to read as
52-10 follows:
52-11 Sec. 201.201. Tax Due. The tax imposed by this chapter for
52-12 gas produced and saved is due at the office of the comptroller in
52-13 Austin on the 20th <last> day of the second <each calendar> month
52-14 following the month of production <for gas produced and saved
52-15 during the preceding calendar month>.
52-16 SECTION 64. Section 361.138, Health and Safety Code, is
52-17 amended by amending Subsection (a) and by adding Subsections (l),
52-18 (m), and (n) to read as follows:
52-19 (a) In this section:
52-20 (1) "Engaged in business in this state" has the
52-21 meaning provided under Sections 151.107(a) and (b), Tax Code.
52-22 (2) "Lead-acid<, "lead-acid> battery" means any
52-23 battery which contains lead and sulfuric acid.
52-24 (3) "Purchased for resale" means acquired by means of
52-25 a sale for resale as defined in Section 151.006, Tax Code.
52-26 (4) "Storage" and "use" have the meanings assigned
52-27 those terms by Section 151.011, Tax Code.
53-1 (l) A fee is imposed on the storage, use, or other
53-2 consumption in this state of a lead-acid battery, unless purchased
53-3 for resale, at the same rate as provided by Subsection (b).
53-4 (m) A person storing, using, or consuming a lead-acid
53-5 battery in this state is liable for the fee imposed by Subsection
53-6 (l) and is responsible for reporting and paying it to the
53-7 comptroller in the same manner as a person required to collect the
53-8 fee provided for in Subsections (c)(2) and (d).
53-9 (n) A person storing, using, or consuming a lead-acid
53-10 battery in this state is not liable for the fee if the person pays
53-11 the fee to a wholesaler or retailer engaged in business in this
53-12 state or other person authorized by the comptroller to collect the
53-13 fee and receives from the person a receipt showing that the fee has
53-14 been paid.
53-15 SECTION 65. Section 361.472, Health and Safety Code, is
53-16 amended by adding Subsection (k) to read as follows:
53-17 (k) In this section:
53-18 (1) "Engaged in business in this state" has the
53-19 meaning provided under Sections 151.107(a) and (b), Tax Code.
53-20 (2) "Purchased for resale" means acquired by means of
53-21 a sale for resale as defined in Section 151.006, Tax Code.
53-22 (3) "Storage" and "use" have the meanings assigned
53-23 those terms by Section 151.011, Tax Code.
53-24 SECTION 66. Subsection (c), Section 361.472, Health and
53-25 Safety Code, is amended to read as follows:
53-26 (c) A fee may not be assessed for a bicycle tire or a solid
53-27 industrial tire.
54-1 SECTION 67. Section 324.099, Local Government Code, is
54-2 amended by adding Subsections (j) and (k) to read as follows:
54-3 (j) The board may settle a claim for a penalty or interest
54-4 accrued on a tax imposed by this chapter if the board finds that
54-5 the revenue permit holder exercised reasonable diligence to comply
54-6 with this chapter.
54-7 (k) The district may impose different tax rates for the
54-8 different types of services and different types of rental items to
54-9 which Subsection (b)(3) applies but none of the rates may exceed
54-10 the maximum rate provided by that subsection.
54-11 SECTION 68. Subsection (e), Section 4A, Development
54-12 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
54-13 Statutes), is amended to read as follows:
54-14 (e) The Municipal Sales and Use Tax Act (Chapter 321, Tax
54-15 Code) governs an election to authorize the imposition of the sales
54-16 and use tax under this section and governs the imposition,
54-17 computation, administration, governance, abolition, and use of the
54-18 tax except as inconsistent with this section. The tax imposed
54-19 under this section <If an election is held under Subsection (f) of
54-20 this section at the same time as another election under this
54-21 section and an additional sales and use tax under Section
54-22 321.101(b), Tax Code, is adopted or repealed or its rate is
54-23 increased or reduced, each tax under this section and the
54-24 imposition or change in the rate of the additional sales and use
54-25 tax> takes effect as provided by Section 321.102(a) <321.102(b)>,
54-26 Tax Code.
54-27 SECTION 69. Subsection (c), Section 151.027, Tax Code, is
55-1 amended to read as follows:
55-2 (c) This section does not prohibit:
55-3 (1) the examination of information, if authorized by
55-4 the comptroller, by another state officer or law enforcement
55-5 officer, by a tax official of another state, or by an official of
55-6 the United States if a reciprocal agreement exists;
55-7 (2) the delivery to a taxpayer, or a taxpayer's
55-8 authorized representative, of a copy of a report or other paper
55-9 filed by the taxpayer under this chapter;
55-10 (3) the publication of statistics classified to
55-11 prevent the identification of a particular report or items in a
55-12 particular report;
55-13 (4) the use of records, reports, or information
55-14 secured, derived, or obtained by the attorney general or the
55-15 comptroller in an action under this chapter against the same
55-16 taxpayer who furnished the information; <or>
55-17 (5) the delivery to a successor, receiver, executor,
55-18 administrator, assignee, or guarantor of a taxpayer of information
55-19 about items included in the measure and amounts of any unpaid tax
55-20 or amounts of tax, penalties, and interest required to be
55-21 collected; or
55-22 (6) the delivery of information to an eligible
55-23 municipality in accordance with Section 321.3022.
55-24 SECTION 70. Subchapter D, Chapter 321, Tax Code, is amended
55-25 by adding Section 321.3022 to read as follows:
55-26 Sec. 321.3022. TAX INFORMATION. (a) The comptroller on
55-27 request shall provide to a municipality that has adopted a tax
56-1 under this chapter and that has a population of less than 50,000
56-2 information relating to the amount of tax paid to the municipality
56-3 under this chapter during the preceding or current calendar year by
56-4 each person doing business in the municipality who annually remits
56-5 to the comptroller state and local sales tax payments of more than
56-6 $100,000.
56-7 (b) A request for information under this section must be
56-8 made in writing by the municipality's mayor or chief administrative
56-9 officer.
56-10 (c) Information received by a municipality under this
56-11 section is confidential, is not open to public inspection, and may
56-12 be used only for the purpose of economic forecasting.
56-13 (d) The comptroller may set and collect from a municipality
56-14 reasonable fees to cover the expense of compiling and providing
56-15 information under this section.
56-16 SECTION 71. Subdivisions (3) and (6), Section 12, Article
56-17 8817, Revised Statutes, are amended to read as follows:
56-18 (3) The application shall be accompanied by a <sworn>
56-19 written statement executed by the individual designated to maintain
56-20 the records and make reports that he is aware of and accepts this
56-21 responsibility.
56-22 (6) The application must contain a statement that the
56-23 information contained in it is true and correct<, and this
56-24 statement shall be made under oath>.
56-25 SECTION 72. Subdivision (1), Section 19, Article 8817,
56-26 Revised Statutes, is amended to read as follows:
56-27 (1) The Comptroller may not issue a general business <or
57-1 import> license for a business under this Article if the
57-2 Comptroller finds that the applicant:
57-3 (a) has been finally convicted of a felony in a court
57-4 of competent jurisdiction during the five years preceding the
57-5 filing of the application; or
57-6 (b) has been on probation or parole as a result of a
57-7 felony conviction during the two years preceding the filing of the
57-8 application.
57-9 SECTION 73. Section 159.204, Tax Code, is repealed.
57-10 SECTION 74. (a) The change in law made by this Act does not
57-11 affect the collection or the enforcement of the payment of taxes
57-12 imposed before the effective date of this Act, and the law in
57-13 effect before the effective date of this Act is continued in effect
57-14 for purposes of the liability for and collection of those taxes.
57-15 This subsection does not apply to the change to Section 201.201,
57-16 Tax Code, as amended by this Act, for taxes made due by that
57-17 section in the second month after the effective date of that
57-18 section.
57-19 (b) The change in law made to Chapter 159, Tax Code, by this
57-20 Act applies only to a violation of the penal law of this state that
57-21 occurs on or after the effective date of this Act. A violation of
57-22 the penal law of this state occurs on or after the effective date
57-23 of this Act if any element of the violation occurs on or after that
57-24 date.
57-25 (c) A violation of the penal law of this state that occurs
57-26 before the effective date of this Act is governed by the law in
57-27 effect at the time the violation occurred, and that law is
58-1 continued in effect for that purpose.
58-2 (d) The legislature intends that Subdivision (2), Subsection
58-3 (b), and Subsection (q), Section 151.318, Tax Code, as added by
58-4 this Act, other than the last two sentences of Subsection (q) of
58-5 that section, be considered as a clarification of existing law and
58-6 not a substantive change.
58-7 SECTION 75. If legislation is enacted transferring the
58-8 responsibilities of the treasurer to the comptroller, the
58-9 comptroller shall administer this Act consistent with that
58-10 legislation.
58-11 SECTION 76. This Act takes effect October 1, 1995.
58-12 SECTION 77. The importance of this legislation and the
58-13 crowded condition of the calendars in both houses create an
58-14 emergency and an imperative public necessity that the
58-15 constitutional rule requiring bills to be read on three several
58-16 days in each house be suspended, and this rule is hereby suspended.