Floor Packet Page No. 254
      Amend CSHB 4 Section 4.11 by adding subsections (b) and (c)
at the bottom of page 222 of CSHB 4 which will amend existing
subsections (b) and (c) of Section 151.0048(b) and (c) Tax Code to
read as follows:
      (b)  "Real property service" does not include a service
listed under Subsection (a) if the service is purchased by a
contractor as part of the improvement of real property with a new
structure (<to be used as a residence>) or other improvement
immediately adjacent to the new structure and used in the
(<residential>) occupancy of the structure.
      (c)  In this section, "contractor" means a person who makes
an improvement on real estate and who, as a necessary or incidental
part of the service, incorporates tangible personal property into
the property improved. The term includes a builder, developer,
speculative builder, landscaper, or other person acting as a
builder to improve real property.