By: Armbrister S.B. No. 862
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the administration, collection, and enforcement by the
1-2 comptroller of various taxes and fees.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subdivision (8), Section 101.003, Tax Code, as
1-5 amended by Section 1.01, Chapter 486, and Section 3.27, Chapter
1-6 685, Acts of the 73rd Legislature, 1993, is reenacted to read as
1-7 follows:
1-8 (8) "Taxpayer" means a person liable for a tax, fee,
1-9 assessment, or other amount imposed by a statute or under the
1-10 authority of a statutory function administered by the comptroller.
1-11 SECTION 2. Subsection (a), Section 111.0047, Tax Code, as
1-12 amended by Section 4.08, Chapter 107, and Section 32, Chapter 284,
1-13 Acts of the 73rd Legislature, 1993, is amended to read as follows:
1-14 (a) If a person fails to comply with any provision of this
1-15 title[, with any provision of Chapter 466, Government Code,] or
1-16 with a rule of the comptroller adopted under this title [or Chapter
1-17 466, Government Code], the comptroller, after a hearing, may revoke
1-18 or suspend any permit or license issued to the person.
1-19 SECTION 3. Subsection (a), Section 111.0048, Tax Code, as
1-20 amended by Section 4.09, Chapter 107, and Section 33, Chapter 284,
1-21 Acts of the 73rd Legislature, 1993, is amended to read as follows:
1-22 (a) A new permit or license may not be issued to a former
1-23 holder of a revoked permit or license unless the comptroller is
2-1 satisfied that the person will comply with the provisions of this
2-2 title [and Chapter 466, Government Code] and the rules of the
2-3 comptroller relating to this title [and Chapter 466, Government
2-4 Code].
2-5 SECTION 4. (a) Subsection (a), Section 111.006, Tax Code,
2-6 is amended to conform to Section 1, Chapter 175, Acts of the 74th
2-7 Legislature, 1995, and Section 4, Chapter 351, Acts of the 74th
2-8 Legislature, 1995, to read as follows:
2-9 (a) The [Except as provided by Subsection (d), the]
2-10 following matter is confidential and may not be used publicly,
2-11 opened to public inspection, or disclosed except as permitted under
2-12 Subsection (b), [or] (d), or (e):
2-13 (1) a federal tax return or federal tax return
2-14 information required to have been submitted to the comptroller with
2-15 a state tax return or report; and
2-16 (2) all information secured, derived, or obtained by
2-17 the comptroller or the attorney general during the course of an
2-18 examination of the taxpayer's books, records, papers, officers, or
2-19 employees, including an examination of the business affairs,
2-20 operations, source of income, profits, losses, or expenditures of
2-21 the taxpayer.
2-22 (b) Subsection (d), Section 111.006, Tax Code, as added by
2-23 Section 4, Chapter 351, Acts of the 74th Legislature, 1995, is
2-24 relettered as Subsection (e), Section 111.006, Tax Code.
2-25 SECTION 5. Section 111.018, Tax Code, is amended by adding
3-1 Subsection (c) to read as follows:
3-2 (c) Publication in a newspaper of a notice of sale of seized
3-3 property under Subsection (b)(4) is not required if the estimated
3-4 value of the property to be sold is less than $40,000. The
3-5 comptroller may notify potential buyers of seized property the
3-6 value of which is estimated to be less than $40,000 by any means
3-7 reasonable and cost-effective to the state under the circumstances.
3-8 SECTION 6. Subsection (b), Section 111.061, Tax Code, is
3-9 amended to read as follows:
3-10 (b) Except where another penalty for fraud or intent to
3-11 evade the tax is specifically provided, an additional penalty of 50
3-12 percent of the tax due shall be imposed if it is determined that:
3-13 (1) the failure to pay the tax or file a report when
3-14 due was a result of fraud or an intent to evade the tax; or
3-15 (2) the taxpayer alters, destroys, or conceals any
3-16 record, document, or thing, or presents to the comptroller any
3-17 altered or fraudulent record, document, or thing, or otherwise
3-18 engages in fraudulent conduct, for the apparent purpose of
3-19 affecting the course or outcome of an audit, investigation,
3-20 redetermination, or other proceeding before the comptroller[, an
3-21 additional penalty of 50 percent of the tax due shall be imposed].
3-22 SECTION 7. Subsection (f), Section 111.206, Tax Code, is
3-23 amended to read as follows:
3-24 (f) In this section:
3-25 (1) "Federal[, "federal] regulatory agency" includes
4-1 the United States Internal Revenue Service.
4-2 (2) "Administrative proceeding" includes an audit by
4-3 the United States Internal Revenue Service.
4-4 SECTION 8. Section 112.060, Tax Code, is amended by amending
4-5 Subsections (a), (b), and (d) and adding Subsection (e) to read as
4-6 follows:
4-7 (a) If a suit under this subchapter results in a final
4-8 determination that all or part of the money paid under protest was
4-9 unlawfully demanded by the public official and belongs to the
4-10 taxpayer, the comptroller [treasurer] shall credit the proper
4-11 amount, with the pro rata interest earned on that amount, against
4-12 any other amount finally determined to be due to the state from the
4-13 taxpayer according to information in the custody of the comptroller
4-14 [treasurer] and shall refund the remainder by the issuance of a
4-15 refund warrant.
4-16 (b) A refund warrant shall be written and signed by the
4-17 comptroller [and countersigned by the treasurer].
4-18 (d) The comptroller shall issue each tax refund warrant and
4-19 [treasurer shall return to the comptroller each tax refund warrant
4-20 issued, and the comptroller] shall deliver it to the person
4-21 entitled to receive it.
4-22 (e) The comptroller may not refund an amount of tax to a
4-23 taxpayer or person who collects taxes from another person unless
4-24 the taxpayer or person refunds all the taxes to the person from
4-25 whom the taxes were collected.
5-1 SECTION 9. Subsection (b), Section 113.006, Tax Code, is
5-2 amended to read as follows:
5-3 (b) One tax lien notice is sufficient to cover all taxes of
5-4 the same nature, including penalty and interest computed by
5-5 reference to the amount of tax, that may have accrued before or
5-6 [accrue] after the filing of the notice.
5-7 SECTION 10. Section 151.0035, Tax Code, is amended to read
5-8 as follows:
5-9 Sec. 151.0035. "DATA PROCESSING SERVICE." "Data processing
5-10 service" includes word processing, data entry, data retrieval, data
5-11 search, information compilation, payroll and business accounting
5-12 data production, and other computerized data and information
5-13 storage or manipulation. "Data processing service" also includes
5-14 the use of a computer or computer time for data processing whether
5-15 the processing is performed by the provider of the computer or
5-16 computer time or by the purchaser or other beneficiary of the
5-17 service. "Data processing service" does not include the
5-18 transcription of medical dictation by a medical transcriptionist.
5-19 SECTION 11. Subsection (b), Section 151.0047, Tax Code, is
5-20 amended by adding Subdivision (3) to read as follows:
5-21 (3) "New product" means a product that:
5-22 (A) has different product properties and a
5-23 different commercial application than the product previously
5-24 manufactured or processed by the production unit that produced the
5-25 previous product; and
6-1 (B) is not created by straining or purifying an
6-2 existing product or by making cosmetic changes, such as adding or
6-3 removing color or odor, to or from an existing product.
6-4 SECTION 12. Subsection (c), Section 151.0048, Tax Code, is
6-5 amended to read as follows:
6-6 (c) In this section, "contractor" means a person who makes
6-7 an improvement on real estate and who, as a necessary or incidental
6-8 part of the service, incorporates tangible personal property into
6-9 the property improved. The term includes a builder, developer,
6-10 speculative builder, or other person acting as a builder to improve
6-11 residential real property.
6-12 SECTION 13. Subsection (c), Section 151.007, Tax Code, is
6-13 amended to read as follows:
6-14 (c) "Sales price" or "receipts" does not include any of the
6-15 following if separately identified to the customer by such means as
6-16 an invoice, billing, sales slip or ticket, or contract:
6-17 (1) a cash discount allowed on the sale;
6-18 (2) the amount charged for tangible personal property
6-19 returned by a customer if the total amount charged is refunded by
6-20 cash or credit;
6-21 (3) a refund of the charges for the performance of a
6-22 taxable service;
6-23 (4) finance, carrying and service charges, or interest
6-24 from credit extended on sales of taxable items under a conditional
6-25 sales contract or other contract providing for the deferred payment
7-1 of the purchase price;
7-2 (5) the value of tangible personal property that:
7-3 (A) is taken by a seller in trade as all or part
7-4 of the consideration for a sale of a taxable item; and
7-5 (B) is of a type of property sold by the seller
7-6 in the regular course of business;
7-7 (6) the face value of United States coin or currency
7-8 in a sale of that coin or currency in which the total consideration
7-9 given by the purchaser exceeds the face value of the coin or
7-10 currency; or
7-11 (7) a voluntary gratuity or a reasonable mandatory
7-12 charge for the service of a meal or food products, including soft
7-13 drinks and candy, for immediate human consumption when the service
7-14 charge is separated from the sales price of the meal or food
7-15 product and identified as a gratuity or tip and when the total
7-16 amount of the service charge is disbursed by the employer to
7-17 employees who customarily and regularly provide the service.
7-18 SECTION 14. Section 151.057, Tax Code, is amended to read as
7-19 follows:
7-20 Sec. 151.057. SERVICES BY EMPLOYEES. The following services
7-21 are not taxable under this chapter:
7-22 (1) a [A] service performed by an employee for his
7-23 employer in the regular course of business, within the scope of the
7-24 employee's duties, and for which the employee is paid his regular
7-25 wages or salary;[, or]
8-1 (2) a service performed by a temporary help service
8-2 for an employer to supplement the employer's existing work force on
8-3 a temporary basis, when the service is normally performed by the
8-4 employer's own employees, the employer provides all supplies and
8-5 equipment necessary, and the help is under the direct or general
8-6 supervision of the employer to whom the help is furnished; or
8-7 (3) a service performed by assigned employees of a
8-8 staff leasing company for a client company under a written contract
8-9 that provides for shared employment responsibilities between the
8-10 staff leasing company and the client company for the assigned
8-11 employees, most of whom must have been previously employed by the
8-12 client company. The comptroller shall prescribe by rule the
8-13 minimum percentage of assigned employees that must have been
8-14 previously employed by the client company, the minimum time period
8-15 the assigned employees must have been employed by the client
8-16 company prior to the commencement of its contract, and such other
8-17 criteria as the comptroller may deem necessary to properly
8-18 implement this section[, is not taxable under this chapter].
8-19 SECTION 15. Section 151.154, Tax Code, is amended by adding
8-20 Subsection (f) to read as follows:
8-21 (f) A purchaser who issues a resale certificate for the
8-22 purchase of a taxable item is liable for payment of the sales tax
8-23 on the purchase price of the taxable item if the purchaser uses the
8-24 item as a part of the excludable consideration on the purchase of
8-25 another taxable item.
9-1 SECTION 16. Subsection (c), Section 151.310, Tax Code, is
9-2 amended to read as follows:
9-3 (c) An organization that qualifies for an exemption under
9-4 Subsection (a)(1) or (a)(2) of this section, and each bona fide
9-5 chapter of the organization, may hold two tax-free sales or
9-6 auctions under this subsection during a calendar year and each
9-7 tax-free sale or auction may continue for one day only. The sale
9-8 of a taxable item the sales price of which is $5,000 or less by a
9-9 qualified organization or chapter of the organization at a tax-free
9-10 sale or auction is exempted from the sales tax imposed by
9-11 Subchapter C of this chapter. The storage, use, or consumption of
9-12 a taxable item that is acquired from a qualified organization or
9-13 chapter of the organization at a tax-free sale or auction and that
9-14 is exempted under this subsection from the taxes imposed by
9-15 Subchapter C is exempted from the use tax imposed by Subchapter D
9-16 of this chapter until the item is resold or subsequently
9-17 transferred.
9-18 SECTION 17. Section 151.318, Tax Code, is amended by adding
9-19 Subsection (r) to read as follows:
9-20 (r) For the purposes of this section, the manufacturing of
9-21 computer software begins with the design and writing of the code or
9-22 program for the software and includes the testing or demonstration
9-23 of the software.
9-24 SECTION 18. Subsections (a) and (c), Section 151.321, Tax
9-25 Code, are amended to read as follows:
10-1 (a) A taxable item sold by a qualified student organization
10-2 and for which the sales price is $5,000 or less is exempted from
10-3 the taxes imposed by Subchapter C if the student organization:
10-4 (1) sells the item [items] at a sale that may last for
10-5 one day only and the primary purpose of which is to raise funds for
10-6 the organization; and
10-7 (2) holds not more than one sale described by
10-8 Subdivision (1) each month for which an [the] exemption is claimed
10-9 for an item sold.
10-10 (c) A student organization must file with the comptroller a
10-11 certification issued by the institution, college, or university
10-12 described in Subsection (b)(1) showing that the organization is
10-13 affiliated with the institution, college, or university. [The
10-14 certification is valid for two years after the date that the
10-15 comptroller receives it.]
10-16 SECTION 19. Subsection (f), Section 151.330, Tax Code, is
10-17 amended to read as follows:
10-18 (f) Services performed for use both within and outside this
10-19 state are exempt to the extent the services are for use outside
10-20 this state and made taxable on or after September 1, 1987.
10-21 SECTION 20. Section 151.353, Tax Code, is amended by
10-22 amending Subsection (a) and adding Subsection (d) to read as
10-23 follows:
10-24 (a) Court reporting services relating to the preparation of
10-25 a document or other record in a civil or criminal suit by a court
11-1 reporter licensed by the State of Texas Court Reporters
11-2 Certification Board are exempted from the taxes imposed by this
11-3 chapter if the document is:
11-4 (1) prepared for the use of a person participating in
11-5 a suit or the court in which a suit or administrative proceeding is
11-6 brought; and
11-7 (2) sold to a person participating in the suit.
11-8 (d) Court reporting services by a video photographer who is
11-9 not a court reporter and who videotapes or films a deposition,
11-10 testimony, discovery document, or statement of fact pertaining to a
11-11 civil or criminal suit are exempted from the taxes imposed by this
11-12 chapter if the services are provided and sold as described by
11-13 Subsections (a)(1) and (2).
11-14 SECTION 21. Section 152.001, Tax Code, is amended by
11-15 amending Subdivisions (2), (3), (4), and (15) and adding
11-16 Subdivisions (17), (18), and (19) to read as follows:
11-17 (2) "Retail sale" means a sale of a motor vehicle
11-18 except:
11-19 (A) the [a] sale of a new motor vehicle in which
11-20 the purchaser is a franchised dealer who is authorized by law and
11-21 by franchise agreement to offer the vehicle for sale as a new motor
11-22 vehicle and [holds a general distinguishing number issued pursuant
11-23 to the terms of Article 6686, Revised Statutes,] who acquires the
11-24 [a] vehicle either for the exclusive purpose of sale in the manner
11-25 provided by law or for purposes allowed under Chapter 503,
12-1 Transportation Code [resale]; [or]
12-2 (B) the [a] sale of a vehicle other than a new
12-3 motor vehicle in which the purchaser is a dealer who holds a
12-4 dealer's general distinguishing number issued under Chapter 503,
12-5 Transportation Code, and who acquires the vehicle either for the
12-6 exclusive purpose of resale in the manner provided by law or for
12-7 purposes allowed under Chapter 503, Transportation Code; or
12-8 (C) the sale to a franchised dealer of a new
12-9 motor vehicle removed from the franchised dealer's inventory for
12-10 the purpose of entering into a contract to lease the vehicle to
12-11 another person, if, immediately after executing the lease contract,
12-12 the franchised dealer transfers title of the vehicle, and assigns
12-13 the lease contract to the lessor of the vehicle [that is operated
12-14 under and in accordance with Article 6686, Revised Civil Statutes
12-15 of Texas, 1925, as amended].
12-16 (3) "Motor Vehicle" includes:
12-17 (A) a self-propelled vehicle designed to
12-18 transport persons or property on a public highway;
12-19 (B) a trailer and semitrailer, including a van,
12-20 flatbed, tank, dumpster, dolly, jeep, stinger, auxiliary axle, or
12-21 converter gear; and
12-22 (C) a house trailer as defined by Chapter 501,
12-23 Transportation Code [the Certificate of Title Act (Article 6687-1,
12-24 Vernon's Texas Civil Statutes)].
12-25 (4) "Motor Vehicle" does not include:
13-1 (A) a device moved only by human power;
13-2 (B) a device used exclusively on stationary
13-3 rails or tracks;
13-4 (C) road-building machinery;
13-5 (D) a mobile office;
13-6 (E) a vehicle with respect to which the
13-7 certificate of title has been surrendered in exchange for:
13-8 (i) a salvage certificate issued pursuant
13-9 to Chapter 501, Transportation Code [the Certificate of Title Act
13-10 (Article 6687-1, Vernon's Texas Civil Statutes)];
13-11 (ii) a certificate of authority issued
13-12 pursuant to Chapter 683, Transportation Code [Article V, Chapter
13-13 741, Acts of the 67th Legislature, Regular Session, 1981 (Article
13-14 4477-9a, Vernon's Texas Civil Statutes)];
13-15 (iii) a nonrepairable motor vehicle
13-16 certificate of title issued pursuant to Chapter 501, Transportation
13-17 Code [Section 37A, Certificate of Title Act (Article 6687-1,
13-18 Vernon's Texas Civil Statutes), as added by H.B. No. 2151, Acts of
13-19 the 74th Legislature, Regular Session, 1995];
13-20 (iv) an ownership document issued by
13-21 another state if the document is comparable to a document issued
13-22 pursuant to Subparagraph (i), (ii), or (iii); or
13-23 (F) a vehicle that has been declared a total
13-24 loss by an insurance company pursuant to the settlement or
13-25 adjustment of a claim.
14-1 (15) "Seller-financed sale" means a retail sale of a
14-2 motor vehicle by a dealer licensed under Chapter 503,
14-3 Transportation Code [Article 6686, Revised Statutes], in which the
14-4 seller collects all or part of the total consideration in periodic
14-5 payments and retains a lien on the motor vehicle until all payments
14-6 have been received. The term does not include a:
14-7 (A) retail sale of a motor vehicle in which a
14-8 person other than the seller provides the consideration for the
14-9 sale and retains a lien on the motor vehicle as collateral;
14-10 (B) lease; or
14-11 (C) rental.
14-12 (17) "Lessor" means a person who acquires title to a
14-13 new motor vehicle for the purpose of leasing the vehicle to another
14-14 person.
14-15 (18) "New motor vehicle" means a motor vehicle that,
14-16 without regard to mileage, has not been the subject of a retail
14-17 tax.
14-18 (19) "Franchised dealer" has the meaning assigned the
14-19 term by Chapter 503, Transportation Code.
14-20 SECTION 22. Subsection (a), Section 152.028, Tax Code, is
14-21 amended to read as follows:
14-22 (a) A use tax is imposed on the operator of a motor vehicle
14-23 that was purchased tax-free under Section 152.092 [152.090] of this
14-24 code and that is brought back into this state for use on the public
14-25 highways of this state. The tax is imposed at the time the motor
15-1 vehicle is brought back into this state.
15-2 SECTION 23. Section 152.0411, Tax Code, is amended by
15-3 amending Subsections (a) and (e) and adding Subsection (f) to read
15-4 as follows:
15-5 (a) Except as provided by this section, a [A] seller who
15-6 makes a sale subject to the sales tax imposed by Section 152.021
15-7 shall add the amount of the tax to the sales price, and when the
15-8 amount of the tax is added:
15-9 (1) it is a debt of the purchaser to the seller until
15-10 paid; and
15-11 (2) if unpaid, it is recoverable at law in the same
15-12 manner as the original sales price.
15-13 (e) This section applies only to a sale in which the seller
15-14 is a motor vehicle dealer who holds a dealer license issued under
15-15 Chapter 503, Transportation Code [pursuant to the authority of
15-16 Article 6686, Revised Statutes], or the Texas Motor Vehicle
15-17 Commission Code (Article 4413(36), Vernon's Texas Civil Statutes).
15-18 (f) This section does not apply to the sale of a motor
15-19 vehicle with a gross weight in excess of 11,000 pounds. The seller
15-20 of a motor vehicle with a gross weight in excess of 11,000 pounds
15-21 shall maintain records of the sale in the manner and form, and
15-22 containing the information, required by the comptroller.
15-23 SECTION 24. Subsection (e), Section 152.063, Tax Code, is
15-24 amended to read as follows:
15-25 (e) For a retail sale for which the seller receives full
16-1 payment at the time of sale, the seller shall keep, at the seller's
16-2 principal office for at least four years from the date of the sale,
16-3 documentation of complete payment in the form of:
16-4 (1) a copy of the payment instrument or a receipt for
16-5 cash received; and
16-6 (2) a copy of the receipt for title application,
16-7 registration, and motor vehicle tax issued by the county tax
16-8 assessor-collector [or a written statement by the purchaser that:]
16-9 [(A) is signed and dated;]
16-10 [(B) indicates the date on which the seller
16-11 provided to the purchaser each of the documents necessary to apply
16-12 for the title, register the vehicle, and pay the motor vehicle
16-13 sales tax; and]
16-14 [(C) includes a statement that the seller
16-15 advised the purchaser that the purchaser must pay a tax to the
16-16 county tax assessor-collector].
16-17 SECTION 25. Subsections (c), (d), and (e), Section 152.0635,
16-18 Tax Code, are amended to read as follows:
16-19 (c) For retail sales paid in full at the time of sale, the
16-20 seller shall keep at the seller's principal office for at least
16-21 four years from the date of the sale documentation of complete
16-22 payment in the form of:
16-23 (1) a copy of the payment instrument or a receipt for
16-24 cash received; and
16-25 (2) a copy of the receipt for title application,
17-1 registration, and motor vehicle tax issued by the county tax
17-2 assessor-collector [or a statement by the purchaser that is signed
17-3 and dated and indicates the date that each of the documents
17-4 necessary to apply for the title, register the vehicle, and pay the
17-5 motor vehicle sales tax were provided to the purchaser by the
17-6 seller].
17-7 (d) [The document required under Subsection (c)(2) shall
17-8 also include a statement that the seller advised the purchaser that
17-9 the purchaser must pay a tax to the county tax assessor-collector.]
17-10 [(e)] For sales for resale, the seller shall keep at the
17-11 seller's principal office for at least four years from the date of
17-12 the sale the purchaser's written statement of resale on a form
17-13 prescribed by the comptroller.
17-14 SECTION 26. Subsection (d), Section 152.066, Tax Code, is
17-15 amended to read as follows:
17-16 (d) Except in the case of the gross receipts tax, interest
17-17 begins to accrue on delinquent taxes 60 days after the day on which
17-18 the joint statement [affidavit] was executed. Delinquent taxes on
17-19 gross rental receipts draw interest beginning 60 days from the due
17-20 date.
17-21 SECTION 27. Subsection (b), Section 152.069, Tax Code, is
17-22 amended to read as follows:
17-23 (b) The seller shall provide to the county tax
17-24 assessor-collector a joint statement [affidavit] as prescribed by
17-25 Section 152.062 in lieu of the motor vehicle sales tax imposed by
18-1 Section 152.021. The statement [affidavit] shall include the
18-2 seller's permit identification number issued by the comptroller.
18-3 SECTION 28. Subsections (b) and (g), Section 153.017, Tax
18-4 Code, are amended to read as follows:
18-5 (b) An agreement may provide for:
18-6 (1) determining the base state for motor fuel users;
18-7 (2) user records requirements;
18-8 (3) audit procedures;
18-9 (4) exchange of information;
18-10 (5) persons eligible for tax licensing;
18-11 (6) licensing and license revocation procedures,
18-12 permits, penalties, and fees;
18-13 (7) defining qualified motor vehicles;
18-14 (8) determining bonding procedures, types, and
18-15 amounts;
18-16 (9) specifying reporting requirements and periods;
18-17 (10) defining refund procedures and limitations,
18-18 including the payment of interest;
18-19 (11) defining uniform penalties, fees, and interest
18-20 rates;
18-21 (12) determining methods for collecting motor fuel
18-22 taxes and for collecting and forwarding [of] motor fuel taxes,
18-23 other than penalties, [and interest] due to another jurisdiction;
18-24 (13) the temporary remittal of funds equal to the
18-25 amount of the taxes[, penalties,] and interest due to another
19-1 jurisdiction but not otherwise collected, subject to appropriation
19-2 of funds for that purpose; and
19-3 (14) other provisions to facilitate the administration
19-4 of the agreement.
19-5 (g) The comptroller may segregate in a separate fund or
19-6 account the amount of motor fuel taxes, other than penalties,
19-7 estimated to be due to other jurisdictions, motor fuel taxes [or
19-8 otherwise] subject to refund during the fiscal year, [penalties and
19-9 interest on those taxes due other jurisdictions,] licensing fees,
19-10 and other costs collected under the agreement. On a determination
19-11 of an amount held that is due to be remitted to another
19-12 jurisdiction, the comptroller may issue a warrant or make an
19-13 electronic transfer of the amount as necessary to carry out the
19-14 purposes of the agreement. An auditing cost, membership fee, and
19-15 other cost associated with the agreement may be paid from interest
19-16 earned on funds segregated under this subsection. Any interest
19-17 earnings in excess of the costs associated with the agreement shall
19-18 be credited to general revenue.
19-19 SECTION 29. Section 153.1195, Tax Code, is amended to read
19-20 as follows:
19-21 Sec. 153.1195. [REFUNDS AND] CREDITS FOR BAD DEBTS. (a) A
19-22 permitted distributor may take a credit on the monthly report to be
19-23 filed with [against taxes to be remitted to] the comptroller [or
19-24 claim a refund on taxes paid to the comptroller] if:
19-25 (1) the distributor has paid the taxes imposed by this
20-1 subchapter on gasoline sold on account;
20-2 (2) the distributor determines that the account is
20-3 uncollectable and worthless; and
20-4 (3) the account is written off as a bad debt on the
20-5 accounting books of the distributor.
20-6 (b) The amount of the credit that may be taken [or refund
20-7 that may be claimed] under Subsection (a) of this section may equal
20-8 but may not exceed the amount of taxes paid on the gasoline to
20-9 which the written-off account applies.
20-10 (c) If, after a credit is taken [or a refund is paid] under
20-11 Subsection (a) of this section, the account on which the credit [or
20-12 refund] was based is paid, or if the comptroller otherwise
20-13 determines that the credit [or refund] was not authorized by
20-14 Subsection (a) of this section, the unpaid taxes shall be paid by
20-15 the distributor taking the credit [or to whom the refund was made],
20-16 plus a penalty of 10 percent of the amount of the unpaid taxes and
20-17 interest at the rate provided by Section 111.060 of this code
20-18 beginning on the day that the credit was taken [or the refund was
20-19 made].
20-20 (d) This section does not apply to a sale of gasoline that
20-21 is delivered into the fuel supply tank of a motor vehicle or a
20-22 motorboat and for which payment is made through the use and
20-23 acceptance of a credit card.
20-24 SECTION 30. Subsection (f), Section 153.206, Tax Code, is
20-25 amended to read as follows:
21-1 (f) If diesel fuel is purchased, in a single delivery of
21-2 5,000 gallons or more, or in lesser quantities where required by
21-3 city ordinance, by any person for the purpose of resale, the
21-4 seller, supplier [distributor], or broker shall sell the product to
21-5 the retailer or any other person purchasing the product on the
21-6 basis of temperature-corrected gallonage to 60 degrees Fahrenheit
21-7 and the tax shall be computed and paid over to the state on the
21-8 temperature-corrected basis. All other sales shall be reported to
21-9 the comptroller on the basis of gross or volumetric gallons of
21-10 taxable diesel fuel sold.
21-11 SECTION 31. Section 153.2225, Tax Code, is amended to read
21-12 as follows:
21-13 Sec. 153.2225. [REFUNDS AND] CREDITS FOR BAD DEBTS. (a) A
21-14 permitted supplier may take a credit on the monthly report to be
21-15 filed with [against taxes to be remitted to] the comptroller [or
21-16 claim a refund on taxes paid to the comptroller] if:
21-17 (1) the supplier has paid the taxes imposed by this
21-18 subchapter on diesel fuel sold on account;
21-19 (2) the supplier determines that the account is
21-20 uncollectable and worthless; and
21-21 (3) the account is written off as a bad debt on the
21-22 accounting books of the supplier.
21-23 (b) The amount of the credit that may be taken [or refund
21-24 that may be claimed] under Subsection (a) of this section may equal
21-25 but may not exceed the amount of taxes paid on the diesel fuel to
22-1 which the written-off account applies.
22-2 (c) If, after a credit is taken [or a refund is paid] under
22-3 Subsection (a) of this section, the account on which the credit [or
22-4 refund] was based is paid, or if the comptroller otherwise
22-5 determines that the credit [or refund] was not authorized by
22-6 Subsection (a) of this section, the unpaid taxes shall be paid by
22-7 the supplier taking the credit [or to whom the refund was made],
22-8 plus a penalty of 10 percent of the amount of the unpaid taxes and
22-9 interest at the rate provided by Section 111.060 of this code
22-10 beginning on the day that the credit was taken [or the refund was
22-11 made].
22-12 (d) This section does not apply to a sale of diesel fuel
22-13 that is delivered into the fuel supply tank of a motor vehicle or
22-14 motorboat and for which payment is made through the use and
22-15 acceptance of a credit card.
22-16 SECTION 32. Subsection (f), Section 201.057, Tax Code, is
22-17 amended to read as follows:
22-18 (f) To qualify for the exemption or tax reduction provided
22-19 by this section, the person responsible for paying the tax must
22-20 apply to the comptroller. The application must contain the
22-21 certification of the commission that the well produces high-cost
22-22 gas and, if the application is for a well spudded or completed
22-23 after September 1, 1995, must contain a report of drilling and
22-24 completion costs incurred for each well on a form and in the detail
22-25 as determined by the comptroller. Drilling and completion costs
23-1 for a recompletion shall only include current and contemporaneous
23-2 costs associated with the recompletion. An application to the
23-3 comptroller for certification according to Subsection (a)(2)(A)
23-4 must [may not] be filed with the comptroller at the later of
23-5 [after] the 180th day after the date of first [day of] production
23-6 or the 45th day after the date of approval by the commission. An
23-7 application to the comptroller for certification according to
23-8 Subsection (a)(2)(B) may not be filed before January 1, 1990, or
23-9 after December 31, 1998. The comptroller shall approve the
23-10 application of a person who demonstrates that the gas is eligible
23-11 for the exemption or tax reduction. The comptroller may require a
23-12 person applying for the exemption or tax reduction to provide any
23-13 relevant information in the person's monthly report that the
23-14 comptroller considers necessary to administer this section. The
23-15 commission shall notify the comptroller in writing immediately if
23-16 it determines that an oil or gas well previously certified as
23-17 producing high-cost gas does not produce high-cost gas or if it
23-18 takes any action or discovers any information that affects the
23-19 eligibility of gas for an exemption or tax reduction under this
23-20 section.
23-21 SECTION 33. Section 211.102, Tax Code, is amended to read as
23-22 follows:
23-23 Sec. 211.102. DAY ON WHICH PAYMENT IS DUE. Except as
23-24 provided by Sections 211.103 and 211.104(b), payment [Payment] of a
23-25 tax imposed by Section 211.051, 211.052, or 211.053 of this code on
24-1 a decedent's estate is due nine months after the day of the
24-2 decedent's death.
24-3 SECTION 34. Section 211.104, Tax Code, is amended to read as
24-4 follows:
24-5 Sec. 211.104. REPORT OF DETERMINATION OF FEDERAL TAX.
24-6 (a) Within 30 days after receiving notice or information of the
24-7 final assessment and determination of the value of the taxable
24-8 estate assessed and determined by the federal government for the
24-9 purpose of fixing federal estate taxes on that estate, the personal
24-10 representative shall make to the comptroller a report of the value
24-11 of the estate as so fixed and determined. The report shall be made
24-12 in a form and contain information as the comptroller directs.
24-13 (b) Any additional tax due by a decedent's estate as a
24-14 result of an internal revenue service audit or federal tax court
24-15 decision shall be paid to the comptroller not later than the 30th
24-16 day after the date the personal representative receives the notice
24-17 or information of the final assessment and determination of value
24-18 of the taxable estate by the federal government for the purpose of
24-19 fixing federal estate taxes on that estate. The comptroller shall
24-20 issue a determination if any additional amounts owed to the
24-21 comptroller are not remitted with a copy of the audit or tax court
24-22 changes.
24-23 SECTION 35. Subchapter C, Chapter 211, Tax Code, is amended
24-24 by adding Section 211.111 to read as follows:
24-25 Sec. 211.111. LIMITATIONS. (a) The period of limitation
25-1 provided under Section 111.201 does not begin to run in favor of a
25-2 decedent's estate, the estate's personal representative, a
25-3 transferee, a distributee, or any other person liable under Section
25-4 211.108 or 211.201 until the tax liability of the decedent's estate
25-5 becomes final. If an extension of time for filing the return or
25-6 paying the tax is granted to the decedent's estate by the
25-7 comptroller under Section 211.103, the extension tolls the
25-8 beginning of the limitation period for the estate's personal
25-9 representative, transferees, distributees, and other persons.
25-10 (b) A limitation period does not begin to run in favor of a
25-11 decedent's estate, any personal representative, transferee,
25-12 distributee, or other person until the comptroller receives the
25-13 notice or information of the final assessment and determination of
25-14 the value of the decedent's estate for purpose of fixing federal
25-15 estate taxes on that estate, as required under Section 211.104.
25-16 (c) If property is transferred from a decedent's estate
25-17 after the comptroller receives notice or information as required
25-18 under Section 211.104 of the final assessment and determination of
25-19 the value of the estate by the federal government and the tax
25-20 remains unpaid, the limitation period does not begin to run in
25-21 favor of a person liable under Section 211.108 or 211.201 until the
25-22 comptroller learns of the transfer.
25-23 SECTION 36. Section 211.251, Tax Code, is amended to read as
25-24 follows:
25-25 Sec. 211.251. COMPTROLLER'S AUTHORITY TO EXAMINE BOOKS AND
26-1 OTHER PROPERTY. The comptroller may examine books, records,
26-2 documents, or other property of a decedent's estate or of a
26-3 personal representative, transferee, or distributee of a decedent's
26-4 estate at any time [if] the examination is necessary for the
26-5 comptroller to enforce this chapter without regard to the period
26-6 provided by Section 111.0041.
26-7 SECTION 37. Subchapter B, Chapter 403, Government Code, is
26-8 amended by adding Section 403.026 to read as follows:
26-9 Sec. 403.026. ELECTRONIC STORAGE AND MAINTENANCE OF RECORDS.
26-10 (a) The comptroller may store and maintain electronically a state
26-11 record or an essential record if:
26-12 (1) the method used to store and maintain the record
26-13 allows accurate reproduction of the record;
26-14 (2) the method used to store and maintain the record
26-15 conforms with any standards prescribed by the records preservation
26-16 officer in conformity with any applicable rules of the National
26-17 Institute of Standards and Technology, except that those standards
26-18 do not apply to the extent they conflict with this section; and
26-19 (3) the place and manner of safekeeping the medium or
26-20 equipment on which the record is stored and maintained conforms
26-21 with the records preservation officer's requirements under Section
26-22 441.059(a), except that the officer may not prohibit the
26-23 comptroller from retaining possession of that medium or equipment.
26-24 (b) An accurate reproduction of a state record that is
26-25 stored and maintained according to this section is a preservation
27-1 duplicate of the record for purposes of Sections 441.058 and
27-2 441.059, without regard to whether the records preservation
27-3 officer:
27-4 (1) made the reproduction; or
27-5 (2) designated the reproduction as a preservation
27-6 duplicate.
27-7 (c) An accurate reproduction of an essential record that is
27-8 stored and maintained according to this section is a photographic
27-9 reproduction of the record for purposes of Section 441.038(f).
27-10 (d) An accurate reproduction of a state record or an
27-11 essential record may be in tangible or intangible form, including
27-12 an electronic or optical image of the record.
27-13 (e) In this section:
27-14 (1) "Essential record" means written or graphical
27-15 material that is made or received by the comptroller in the conduct
27-16 of official state business and that is filed or intended to be
27-17 preserved permanently or for a definite period as a record of that
27-18 business.
27-19 (2) "Records preservation officer" means the director
27-20 of the records management division of the Texas State Library.
27-21 (3) "State record" means a document, book, paper,
27-22 photograph, sound recording, or other material, without regard to
27-23 physical form or characteristic, that is made or received by the
27-24 comptroller according to law or in connection with the transaction
27-25 of official state business.
28-1 SECTION 38. Section 2155.004, Government Code, is amended to
28-2 read as follows:
28-3 Sec. 2155.004. CERTAIN BIDS AND CONTRACTS PROHIBITED.
28-4 (a) A state agency may not accept a bid or award a contract that
28-5 includes proposed financial participation by a person who received
28-6 compensation from the agency to participate in preparing the
28-7 specifications or request for proposals on which the bid or
28-8 contract is based.
28-9 (b) A state agency may not accept a bid or award a contract
28-10 to any individual not residing in this state or business entity not
28-11 incorporated in or whose principal domicile is not in this state
28-12 unless the individual or business entity:
28-13 (1) holds a permit issued by the comptroller to
28-14 collect or remit all state and local sales and use taxes that
28-15 become due and owing as a result of the individual's or entity's
28-16 business in this state; or
28-17 (2) certifies that it does not sell tangible personal
28-18 property or services that are subject to the state and local sales
28-19 and use tax.
28-20 (c) A bid or award subject to the requirements of this
28-21 section must include the following statement:
28-22 "Under Section 2155.004, Government Code, the vendor
28-23 certifies that the individual or business entity named in this bid
28-24 or contract is not ineligible to receive the specified contract and
28-25 acknowledges that this contract may be terminated and payment
29-1 withheld if this certification is inaccurate."
29-2 (d) If a state agency determines that an individual or
29-3 business entity holding a state contract was ineligible to have the
29-4 contract accepted or awarded under Subsection (a) or (b), the state
29-5 agency may immediately terminate the contract without further
29-6 obligation to the vendor.
29-7 (e) If the certification required under Subsection (b)(2) is
29-8 shown to be false, the vendor is liable to the state for attorney's
29-9 fees, the costs necessary to complete the contract, including the
29-10 cost of advertising and awarding a second contract, and any other
29-11 damages provided by law or contract.
29-12 (f) This section does not create a cause of action to
29-13 contest a bid or award of a state contract.
29-14 (g) In the absence of a certification by the vendor under
29-15 Subsection (b)(2), the purchasing state agency shall determine if a
29-16 prospective vendor holds a permit for the collection and remission
29-17 of state and local sales and use taxes.
29-18 (h) This section does not prohibit a bidder or contract
29-19 participant from providing free technical assistance to a state
29-20 agency.
29-21 SECTION 39. Subsection (a), Section 361.472, Health and
29-22 Safety Code, is amended to read as follows:
29-23 (a) A person in the business of selling new or good used
29-24 tires for use on a vehicle, or a person in the business of selling
29-25 used vehicles or used vehicle parts who sells or offers to sell new
30-1 or good used tires not for resale shall collect at the time and
30-2 place of sale a waste tire recycling fee for each tire sold as
30-3 follows:
30-4 (1) $2 for each new tire that has a rim diameter of 12
30-5 inches or more but less than 17.5 inches and $1 for each good used
30-6 tire that has a rim diameter of 12 inches or more but less than
30-7 17.5 inches;
30-8 (2) $3.50 for each new tire that has a rim diameter of
30-9 17.5 inches or greater, other than an off-the-road tire intended
30-10 for use on heavy machinery, including an earthmover, a
30-11 loader/dozer, a grader, or mining equipment; and
30-12 (3) $2 for a new motorcycle tire, regardless of the
30-13 rim diameter.
30-14 SECTION 40. Subdivision (2), Section 16A, Article 8817,
30-15 Revised Statutes, is amended to read as follows:
30-16 (2) Machines which are exhibited by a nonlicensed owner
30-17 exempt under this section must be registered with the Comptroller.
30-18 The owner shall obtain a registration certificate each year. The
30-19 registration certificate shall show the name and address of the
30-20 location of each machine and shall certify that the machine has a
30-21 valid tax stamp affixed to it. The owner shall obtain his
30-22 registration certificate by filing an [sworn] application in the
30-23 form prescribed by the Comptroller.
30-24 SECTION 41. Section 2, Article 1.28, Insurance Code, is
30-25 amended to read as follows:
31-1 Sec. 2. (a) A [The amount of the examination expenses
31-2 incurred by representatives of the State Board of Insurance that is
31-3 directly attributable to an examination of the books, records,
31-4 accounts, and principal offices of a domestic insurance company
31-5 located outside this state as provided by this article is not
31-6 allowed as a] credit on or offset to the amount of premium taxes to
31-7 be paid by the domestic insurance company to the state in a taxable
31-8 year may not be allowed on:
31-9 (1) examination expenses incurred by representatives
31-10 of the department that are directly attributable to an examination
31-11 of the books, records, accounts, or principal offices of a domestic
31-12 insurance company located outside this state;
31-13 (2) examination expenses or fees paid to a state other
31-14 than this state; or
31-15 (3) examination expenses paid in a different taxable
31-16 year.
31-17 (b) This[, and this] article prevails over any conflicting
31-18 provisions in Articles 1.16, 4.10, 9.59, and 4.11 of this code or
31-19 any other law of this state.
31-20 SECTION 42. Subsection (a), Article 4.17, Insurance Code, is
31-21 amended to read as follows:
31-22 (a) The commissioner shall annually determine the rate of
31-23 assessment of a maintenance tax to be paid on an annual,
31-24 semiannual, or other periodic basis, as determined by the
31-25 comptroller. The rate of assessment may not exceed .04 percent of
32-1 the correctly reported gross premiums of life, health, and accident
32-2 insurance coverages and the gross considerations for annuity and
32-3 endowment contracts collected by all authorized insurers writing
32-4 life, health, and accident insurance, annuity, or endowment
32-5 contracts in this state. The comptroller shall collect the
32-6 maintenance tax. For purposes of this article, the gross premiums
32-7 on which an assessment is based may not include premiums received
32-8 from this state or the United States for insurance contracted for
32-9 by this state or the United States for the purpose of providing
32-10 welfare benefits to designated welfare recipients or for insurance
32-11 contracted for by this state or the United States in accordance
32-12 with or in furtherance of Title 2, Human Resources Code, or the
32-13 federal Social Security Act (42 U.S.C. Section 301 et seq.).
32-14 SECTION 43. Subdivision (4), Subsection (b), Section 32,
32-15 Texas Health Maintenance Organization Act (Article 20A.32, Vernon's
32-16 Texas Insurance Code), is amended to read as follows:
32-17 (4) A [The amount directly attributable to an
32-18 examination of the books, records, accounts, or principal offices
32-19 of a health maintenance organization located outside this state may
32-20 not be allowed as a] credit against the amount of premium taxes to
32-21 be paid by the health maintenance organization in a taxable year
32-22 may not be allowed on:
32-23 (A) expenses directly attributable to an
32-24 examination of the books, records, accounts, or principal offices
32-25 of a health maintenance organization located outside this state;
33-1 (B) examination expenses or fees paid to a state
33-2 other than this state; or
33-3 (C) examination fees paid in a different taxable
33-4 year.
33-5 SECTION 44. Subsection (d), Section 33, Texas Health
33-6 Maintenance Organization Act (Article 20A.33, Vernon's Texas
33-7 Insurance Code), is amended to read as follows:
33-8 (d) The commissioner shall annually determine the rate of
33-9 assessment of a per capita maintenance tax to be paid on an annual
33-10 or semiannual basis, on the correctly reported gross revenues for
33-11 the issuance of health maintenance certificates or contracts
33-12 collected by all authorized health maintenance organizations
33-13 issuing such coverages in this state. The rate of assessment may
33-14 not exceed $2 for each enrollee. The rate of assessment may differ
33-15 between basic health care plans and single health care service
33-16 plans and shall equitably reflect any differences in regulatory
33-17 resources attributable to each type of plan. The comptroller shall
33-18 collect the maintenance tax. For purposes of this section, the
33-19 amount of maintenance tax assessed may not be computed on enrollees
33-20 who as individual certificate holders or their dependents are
33-21 covered by a master group policy paid for by revenues received from
33-22 this state or the United States for insurance contracted for by
33-23 this state or the United States for the purpose of providing
33-24 welfare benefits to designated welfare recipients or for insurance
33-25 contracted for by this state or the United States in accordance
34-1 with or in furtherance of Title 2, Human Resources Code, or the
34-2 federal Social Security Act (42 U.S.C. Section 301 et seq.).
34-3 SECTION 45. The following are repealed:
34-4 (1) Section 111.0022, Tax Code, as added by Section
34-5 3.28, Chapter 685, Acts of the 73rd Legislature, 1993; and
34-6 (2) Section 112.002, Tax Code.
34-7 SECTION 46. (a) Except as otherwise provided by this
34-8 section, this Act takes effect September 1, 1997.
34-9 (b) Sections 10 through 31 of this Act take effect
34-10 October 1, 1997.
34-11 SECTION 47. The importance of this legislation and the
34-12 crowded condition of the calendars in both houses create an
34-13 emergency and an imperative public necessity that the
34-14 constitutional rule requiring bills to be read on three several
34-15 days in each house be suspended, and this rule is hereby suspended.