Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Gutierrez                                    H.B. No. 3451

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation of a procedure that will prevent

 1-3     fraudulent use of manifestos.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 151, Tax Code, is amended as follows:

 1-6           Sec. 151.307.  Exemptions Required by Prevailing Law.

 1-7     (a)  Tangible personal property or services that this state is

 1-8     prohibited from taxing by the law of the United States, the United

 1-9     States Constitution, or the Constitution of Texas is exempted from

1-10     the taxes imposed by this chapter.

1-11           (b)  When an exemption is claimed because tangible personal

1-12     property is exported beyond the territorial limits of the United

1-13     States, proof of exports may be shown only by:

1-14                 (1)  a bill of lading issued by a licensed and

1-15     certificated carrier of persons or property showing the seller as

1-16     cosigner, the buyer as cosignee, and a delivery point outside the

1-17     territorial limits of the United States;

1-18                 (2)  documentation:

1-19                       (A)  provided by a United States Customs Broker

1-20     licensed by the comptroller under Section 151.157;

1-21                       (B)  certifying that delivery was made to a point

1-22     outside the territorial limits of the United States; and

1-23                       (C)  to which a stamp issued under Section

1-24     151.158 is affixed in the manner required by that section or

 2-1     Section 151.157;

 2-2                 (3)  import documents from the country of destination

 2-3     showing that the property was imported into a country other than

 2-4     the United States;

 2-5                 (4)  an original airway, ocean, or railroad bill of

 2-6     lading and a forwarder's receipt if an air ocean, or rail freight

 2-7     forwarder takes possession of the property; or

 2-8                 (5)  any other manner provided by the comptroller for

 2-9     an enterprise authorized to make tax-free purchases under Section

2-10     151.156.

2-11           (c)  If taxes are paid on tangible personal property exported

2-12     beyond the limits of the United States, purchasers may recover

2-13     taxes paid, only upon mailing to the retailor originals or copies

2-14     of purchase receipts attached to documentation as described in

2-15     subsection (b)(2).  Purchase receipt(s) and documentation must be

2-16     mailed from a territory beyond the limits of the United States.

2-17     Upon receiving receipt(s) and documentation, retailors must mail

2-18     taxes paid on tangible personal property, exported beyond the

2-19     limits of the United States to the foreign address, within 21

2-20     business days, less administrative costs.

2-21           (d)  Documentation, including the stamp affixed to the

2-22     documentation, that is provided by a customs broker licensed by the

2-23     comptroller under Section 151.157 is presumed valid in the absence

2-24     of clear and convincing evidence that the tangible personal

2-25     property covered by the documentation was not exported outside the

2-26     territorial limits of the United States.

2-27           (e)  In the section:

2-28                 (1)  "Air forwarded" means a licensed International Air

2-29     Transportation Association freight forwarder.

2-30                 (2)  "Ocean forwarder" means a licensed Federal

 3-1     Maritime Commission freight forwarder.