1-1 By: Truan S.B. No. 982
1-2 (In the Senate - Filed March 8, 1995; March 8, 1995, read
1-3 first time and referred to Committee on Finance; March 9, 1995,
1-4 rereferred to Committee on International Relations, Trade, and
1-5 Technology; March 22, 1995, reported favorably by the following
1-6 vote: Yeas 7, Nays 0; March 22, 1995, sent to printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the relationship of governmental entities outside this
1-10 state, particularly the United Mexican States, to state tax
1-11 provisions.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 151.006, Tax Code, is amended to read as
1-14 follows:
1-15 Sec. 151.006. "Sale for Resale." "Sale for resale" means a
1-16 sale of:
1-17 (1) tangible personal property or a taxable service to
1-18 a purchaser who acquires the property or service for the purpose of
1-19 reselling it in the United States of America or a possession or
1-20 territory of the United States of America or in the United Mexican
1-21 States in the normal course of business in the form or condition in
1-22 which it is acquired or as an attachment to or integral part of
1-23 other tangible personal property or taxable service;
1-24 (2) tangible personal property to a purchaser for the
1-25 sole purpose of the purchaser's leasing or renting it in the United
1-26 States of America or a possession or territory of the United States
1-27 of America or in the United Mexican States to another person, but
1-28 not if incidental to the leasing or renting of real estate;
1-29 (3) tangible personal property to a purchaser who
1-30 acquires the property for the purpose of transferring it in the
1-31 United States of America or a possession or territory of the United
1-32 States of America or in the United Mexican States as an integral
1-33 part of a taxable service; or
1-34 (4) a taxable service performed on tangible personal
1-35 property that is held for sale by the purchaser of the taxable
1-36 service.
1-37 SECTION 2. Section 151.152, Tax Code, is amended by adding
1-38 Subsection (c) to read as follows:
1-39 (c) A resale certificate from a person engaged in business
1-40 in the United Mexican States reselling the taxable item in the
1-41 United Mexican States, in addition to the information required in
1-42 Subsection (b), must provide:
1-43 (1) the purchaser's United Mexican States federal
1-44 identification number; and
1-45 (2) any other information required by the comptroller.
1-46 SECTION 3. Subsection (c), Section 151.027, Tax Code, is
1-47 amended to read as follows:
1-48 (c) This section does not prohibit:
1-49 (1) the examination of information, if authorized by
1-50 the comptroller, by another state officer or law enforcement
1-51 officer, by a tax official of another state, by a tax official of
1-52 the United Mexican States, or by an official of the United States
1-53 if a reciprocal agreement exists;
1-54 (2) the delivery to a taxpayer, or a taxpayer's
1-55 authorized representative, of a copy of a report or other paper
1-56 filed by the taxpayer under this chapter;
1-57 (3) the publication of statistics classified to
1-58 prevent the identification of a particular report or items in a
1-59 particular report;
1-60 (4) the use of records, reports, or information
1-61 secured, derived, or obtained by the attorney general or the
1-62 comptroller in an action under this chapter against the same
1-63 taxpayer who furnished the information; or
1-64 (5) the delivery to a successor, receiver, executor,
1-65 administrator, assignee, or guarantor of a taxpayer of information
1-66 about items included in the measure and amounts of any unpaid tax
1-67 or amounts of tax, penalties, and interest required to be
1-68 collected.
2-1 SECTION 4. Section 111.006, Tax Code, is amended by amending
2-2 Subsection (a) and adding Subsection (d) to read as follows:
2-3 (a) Except as provided by Subsection (d), the <The>
2-4 following matter is confidential and may not be used publicly,
2-5 opened to public inspection, or disclosed except as permitted under
2-6 Subsection (b) of this section:
2-7 (1) a federal tax return or federal tax return
2-8 information required to have been submitted to the comptroller with
2-9 a state tax return or report; and
2-10 (2) all information secured, derived, or obtained by
2-11 the comptroller or the attorney general during the course of an
2-12 examination of the taxpayer's books, records, papers, officers, or
2-13 employees, including an examination of the business affairs,
2-14 operations, source of income, profits, losses, or expenditures of
2-15 the taxpayer.
2-16 (d) Information made confidential in this title may be
2-17 examined by a state officer, a law enforcement officer of this
2-18 state, a tax official of another state, a tax official of the
2-19 United Mexican States, an official of the United States, or an
2-20 authorized representative of any of these officers or officials,
2-21 if:
2-22 (1) the comptroller authorizes the examination; and
2-23 (2) for an official or officer of another state, the
2-24 United States, or the United Mexican States, a reciprocal agreement
2-25 exists allowing the comptroller to examine tax information under
2-26 the control of the officer or official in a manner substantially
2-27 equivalent to the officer's or official's access to information
2-28 under this subsection.
2-29 SECTION 5. This Act takes effect September 1, 1995.
2-30 SECTION 6. The importance of this legislation and the
2-31 crowded condition of the calendars in both houses create an
2-32 emergency and an imperative public necessity that the
2-33 constitutional rule requiring bills to be read on three several
2-34 days in each house be suspended, and this rule is hereby suspended.
2-35 * * * * *