1-1 By: Armbrister S.B. No. 862
1-2 (In the Senate - Filed February 28, 1997; March 5, 1997, read
1-3 first time and referred to Committee on Finance; March 26, 1997,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 11, Nays 0; March 26, 1997, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 862 By: Armbrister
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the administration, collection, and enforcement by the
1-10 comptroller of various taxes and fees.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subdivision (8), Section 101.003, Tax Code, as
1-13 amended by Section 1.01, Chapter 486, and Section 3.27, Chapter
1-14 685, Acts of the 73rd Legislature, 1993, is reenacted to read as
1-15 follows:
1-16 (8) "Taxpayer" means a person liable for a tax, fee,
1-17 assessment, or other amount imposed by a statute or under the
1-18 authority of a statutory function administered by the comptroller.
1-19 SECTION 2. Subsection (a), Section 111.0047, Tax Code, as
1-20 amended by Section 4.08, Chapter 107, and Section 32, Chapter 284,
1-21 Acts of the 73rd Legislature, 1993, is amended to read as follows:
1-22 (a) If a person fails to comply with any provision of this
1-23 title[, with any provision of Chapter 466, Government Code,] or
1-24 with a rule of the comptroller adopted under this title [or Chapter
1-25 466, Government Code], the comptroller, after a hearing, may revoke
1-26 or suspend any permit or license issued to the person.
1-27 SECTION 3. Subsection (a), Section 111.0048, Tax Code, as
1-28 amended by Section 4.09, Chapter 107, and Section 33, Chapter 284,
1-29 Acts of the 73rd Legislature, 1993, is amended to read as follows:
1-30 (a) A new permit or license may not be issued to a former
1-31 holder of a revoked permit or license unless the comptroller is
1-32 satisfied that the person will comply with the provisions of this
1-33 title [and Chapter 466, Government Code] and the rules of the
1-34 comptroller relating to this title [and Chapter 466, Government
1-35 Code].
1-36 SECTION 4. (a) Subsection (a), Section 111.006, Tax Code,
1-37 is amended to conform to Section 1, Chapter 175, Acts of the 74th
1-38 Legislature, 1995, and Section 4, Chapter 351, Acts of the 74th
1-39 Legislature, 1995, to read as follows:
1-40 (a) The [Except as provided by Subsection (d), the]
1-41 following matter is confidential and may not be used publicly,
1-42 opened to public inspection, or disclosed except as permitted under
1-43 Subsection (b), [or] (d), or (e):
1-44 (1) a federal tax return or federal tax return
1-45 information required to have been submitted to the comptroller with
1-46 a state tax return or report; and
1-47 (2) all information secured, derived, or obtained by
1-48 the comptroller or the attorney general during the course of an
1-49 examination of the taxpayer's books, records, papers, officers, or
1-50 employees, including an examination of the business affairs,
1-51 operations, source of income, profits, losses, or expenditures of
1-52 the taxpayer.
1-53 (b) Subsection (d), Section 111.006, Tax Code, as added by
1-54 Section 4, Chapter 351, Acts of the 74th Legislature, 1995, is
1-55 relettered as Subsection (e), Section 111.006, Tax Code.
1-56 SECTION 5. Section 111.018, Tax Code, is amended by adding
1-57 Subsection (c) to read as follows:
1-58 (c) Publication in a newspaper of a notice of sale of seized
1-59 property under Subsection (b)(4) is not required if the estimated
1-60 value of the property to be sold is less than $40,000. The
1-61 comptroller may notify potential buyers of seized property the
1-62 value of which is estimated to be less than $40,000 by any means
1-63 reasonable and cost-effective to the state under the circumstances.
1-64 SECTION 6. Subsection (b), Section 111.061, Tax Code, is
2-1 amended to read as follows:
2-2 (b) Except where another penalty for fraud or intent to
2-3 evade the tax is specifically provided, an additional penalty of 50
2-4 percent of the tax due shall be imposed if it is determined that:
2-5 (1) the failure to pay the tax or file a report when
2-6 due was a result of fraud or an intent to evade the tax; or
2-7 (2) the taxpayer alters, destroys, or conceals any
2-8 record, document, or thing, or presents to the comptroller any
2-9 altered or fraudulent record, document, or thing, or otherwise
2-10 engages in fraudulent conduct, for the apparent purpose of
2-11 affecting the course or outcome of an audit, investigation,
2-12 redetermination, or other proceeding before the comptroller[, an
2-13 additional penalty of 50 percent of the tax due shall be imposed].
2-14 SECTION 7. Subsection (f), Section 111.206, Tax Code, is
2-15 amended to read as follows:
2-16 (f) In this section:
2-17 (1) "Federal[, "federal] regulatory agency" includes
2-18 the United States Internal Revenue Service.
2-19 (2) "Administrative proceeding" includes an audit by
2-20 the United States Internal Revenue Service.
2-21 SECTION 8. Section 112.060, Tax Code, is amended by amending
2-22 Subsections (a), (b), and (d) and adding Subsection (e) to read as
2-23 follows:
2-24 (a) If a suit under this subchapter results in a final
2-25 determination that all or part of the money paid under protest was
2-26 unlawfully demanded by the public official and belongs to the
2-27 taxpayer, the comptroller [treasurer] shall credit the proper
2-28 amount, with the pro rata interest earned on that amount, against
2-29 any other amount finally determined to be due to the state from the
2-30 taxpayer according to information in the custody of the comptroller
2-31 [treasurer] and shall refund the remainder by the issuance of a
2-32 refund warrant.
2-33 (b) A refund warrant shall be written and signed by the
2-34 comptroller [and countersigned by the treasurer].
2-35 (d) The comptroller shall issue each tax refund warrant and
2-36 [treasurer shall return to the comptroller each tax refund warrant
2-37 issued, and the comptroller] shall deliver it to the person
2-38 entitled to receive it.
2-39 (e) The comptroller may not refund an amount of tax to a
2-40 taxpayer or person who collects taxes from another person unless
2-41 the taxpayer or person refunds all the taxes to the person from
2-42 whom the taxes were collected.
2-43 SECTION 9. Subsection (b), Section 113.006, Tax Code, is
2-44 amended to read as follows:
2-45 (b) One tax lien notice is sufficient to cover all taxes of
2-46 the same nature, including penalty and interest computed by
2-47 reference to the amount of tax, that may have accrued before or
2-48 [accrue] after the filing of the notice.
2-49 SECTION 10. Section 151.0035, Tax Code, is amended to read
2-50 as follows:
2-51 Sec. 151.0035. "DATA PROCESSING SERVICE." "Data processing
2-52 service" includes word processing, data entry, data retrieval, data
2-53 search, information compilation, payroll and business accounting
2-54 data production, and other computerized data and information
2-55 storage or manipulation. "Data processing service" also includes
2-56 the use of a computer or computer time for data processing whether
2-57 the processing is performed by the provider of the computer or
2-58 computer time or by the purchaser or other beneficiary of the
2-59 service. "Data processing service" does not include the
2-60 transcription of medical dictation by a medical transcriptionist.
2-61 SECTION 11. Subsection (b), Section 151.0047, Tax Code, is
2-62 amended by adding Subdivision (3) to read as follows:
2-63 (3) "New product" means a product that:
2-64 (A) has different product properties and a
2-65 different commercial application than the product previously
2-66 manufactured or processed by the production unit that produced the
2-67 previous product; and
2-68 (B) is not created by straining or purifying an
2-69 existing product or by making cosmetic changes, such as adding or
3-1 removing color or odor, to or from an existing product.
3-2 SECTION 12. Subsection (c), Section 151.0048, Tax Code, is
3-3 amended to read as follows:
3-4 (c) In this section, "contractor" means a person who makes
3-5 an improvement on real estate and who, as a necessary or incidental
3-6 part of the service, incorporates tangible personal property into
3-7 the property improved. The term includes a builder, developer,
3-8 speculative builder, or other person acting as a builder to improve
3-9 residential real property.
3-10 SECTION 13. Subsection (c), Section 151.007, Tax Code, is
3-11 amended to read as follows:
3-12 (c) "Sales price" or "receipts" does not include any of the
3-13 following if separately identified to the customer by such means as
3-14 an invoice, billing, sales slip or ticket, or contract:
3-15 (1) a cash discount allowed on the sale;
3-16 (2) the amount charged for tangible personal property
3-17 returned by a customer if the total amount charged is refunded by
3-18 cash or credit;
3-19 (3) a refund of the charges for the performance of a
3-20 taxable service;
3-21 (4) finance, carrying and service charges, or interest
3-22 from credit extended on sales of taxable items under a conditional
3-23 sales contract or other contract providing for the deferred payment
3-24 of the purchase price;
3-25 (5) the value of tangible personal property that:
3-26 (A) is taken by a seller in trade as all or part
3-27 of the consideration for a sale of a taxable item; and
3-28 (B) is of a type of property sold by the seller
3-29 in the regular course of business;
3-30 (6) the face value of United States coin or currency
3-31 in a sale of that coin or currency in which the total consideration
3-32 given by the purchaser exceeds the face value of the coin or
3-33 currency; or
3-34 (7) a voluntary gratuity or a reasonable mandatory
3-35 charge for the service of a meal or food products, including soft
3-36 drinks and candy, for immediate human consumption when the service
3-37 charge is separated from the sales price of the meal or food
3-38 product and identified as a gratuity or tip and when the total
3-39 amount of the service charge is disbursed by the employer to
3-40 employees who customarily and regularly provide the service.
3-41 SECTION 14. Section 151.057, Tax Code, is amended to read as
3-42 follows:
3-43 Sec. 151.057. SERVICES BY EMPLOYEES. The following services
3-44 are not taxable under this chapter:
3-45 (1) a [A] service performed by an employee for his
3-46 employer in the regular course of business, within the scope of the
3-47 employee's duties, and for which the employee is paid his regular
3-48 wages or salary;[, or]
3-49 (2) a service performed by a temporary help service
3-50 for an employer to supplement the employer's existing work force on
3-51 a temporary basis, when the service is normally performed by the
3-52 employer's own employees, the employer provides all supplies and
3-53 equipment necessary, and the help is under the direct or general
3-54 supervision of the employer to whom the help is furnished; or
3-55 (3) a service performed by assigned employees of a
3-56 staff leasing company for a client company under a written contract
3-57 that provides for shared employment responsibilities between the
3-58 staff leasing company and the client company for the assigned
3-59 employees, most of whom must have been previously employed by the
3-60 client company. The comptroller shall prescribe by rule the
3-61 minimum percentage of assigned employees that must have been
3-62 previously employed by the client company, the minimum time period
3-63 the assigned employees must have been employed by the client
3-64 company prior to the commencement of its contract, and such other
3-65 criteria as the comptroller may deem necessary to properly
3-66 implement this section[, is not taxable under this chapter].
3-67 SECTION 15. Section 151.154, Tax Code, is amended by adding
3-68 Subsection (f) to read as follows:
3-69 (f) A purchaser who issues a resale certificate for the
4-1 purchase of a taxable item is liable for payment of the sales tax
4-2 on the purchase price of the taxable item if the purchaser uses the
4-3 item as a part of the excludable consideration on the purchase of
4-4 another taxable item.
4-5 SECTION 16. Subsection (c), Section 151.310, Tax Code, is
4-6 amended to read as follows:
4-7 (c) An organization that qualifies for an exemption under
4-8 Subsection (a)(1) or (a)(2) of this section, and each bona fide
4-9 chapter of the organization, may hold two tax-free sales or
4-10 auctions under this subsection during a calendar year and each
4-11 tax-free sale or auction may continue for one day only. The sale
4-12 of a taxable item the sales price of which is $5,000 or less by a
4-13 qualified organization or chapter of the organization at a tax-free
4-14 sale or auction is exempted from the sales tax imposed by
4-15 Subchapter C of this chapter. The storage, use, or consumption of
4-16 a taxable item that is acquired from a qualified organization or
4-17 chapter of the organization at a tax-free sale or auction and that
4-18 is exempted under this subsection from the taxes imposed by
4-19 Subchapter C is exempted from the use tax imposed by Subchapter D
4-20 of this chapter until the item is resold or subsequently
4-21 transferred.
4-22 SECTION 17. Section 151.318, Tax Code, is amended by adding
4-23 Subsection (r) to read as follows:
4-24 (r) For the purposes of this section, the manufacturing of
4-25 computer software begins with the design and writing of the code or
4-26 program for the software and includes the testing or demonstration
4-27 of the software.
4-28 SECTION 18. Subsections (a) and (c), Section 151.321, Tax
4-29 Code, are amended to read as follows:
4-30 (a) A taxable item sold by a qualified student organization
4-31 and for which the sales price is $5,000 or less is exempted from
4-32 the taxes imposed by Subchapter C if the student organization:
4-33 (1) sells the item [items] at a sale that may last for
4-34 one day only and the primary purpose of which is to raise funds for
4-35 the organization; and
4-36 (2) holds not more than one sale described by
4-37 Subdivision (1) each month for which an [the] exemption is claimed
4-38 for an item sold.
4-39 (c) A student organization must file with the comptroller a
4-40 certification issued by the institution, college, or university
4-41 described in Subsection (b)(1) showing that the organization is
4-42 affiliated with the institution, college, or university. [The
4-43 certification is valid for two years after the date that the
4-44 comptroller receives it.]
4-45 SECTION 19. Subsection (f), Section 151.330, Tax Code, is
4-46 amended to read as follows:
4-47 (f) Services performed for use both within and outside this
4-48 state are exempt to the extent the services are for use outside
4-49 this state and made taxable on or after September 1, 1987.
4-50 SECTION 20. Section 151.353, Tax Code, is amended by
4-51 amending Subsection (a) and adding Subsection (d) to read as
4-52 follows:
4-53 (a) Court reporting services relating to the preparation of
4-54 a document or other record in a civil or criminal suit by a court
4-55 reporter licensed by the State of Texas Court Reporters
4-56 Certification Board are exempted from the taxes imposed by this
4-57 chapter if the document is:
4-58 (1) prepared for the use of a person participating in
4-59 a suit or the court in which a suit or administrative proceeding is
4-60 brought; and
4-61 (2) sold to a person participating in the suit.
4-62 (d) Court reporting services by a video photographer who is
4-63 not a court reporter and who videotapes or films a deposition,
4-64 testimony, discovery document, or statement of fact pertaining to a
4-65 civil or criminal suit are exempted from the taxes imposed by this
4-66 chapter if the services are provided and sold as described by
4-67 Subsections (a)(1) and (2).
4-68 SECTION 21. Section 152.001, Tax Code, is amended by
4-69 amending Subdivisions (2), (3), (4), and (15) and adding
5-1 Subdivisions (17), (18), and (19) to read as follows:
5-2 (2) "Retail sale" means a sale of a motor vehicle
5-3 except:
5-4 (A) the [a] sale of a new motor vehicle in which
5-5 the purchaser is a franchised dealer who is authorized by law and
5-6 by franchise agreement to offer the vehicle for sale as a new motor
5-7 vehicle and [holds a general distinguishing number issued pursuant
5-8 to the terms of Article 6686, Revised Statutes,] who acquires the
5-9 [a] vehicle either for the exclusive purpose of sale in the manner
5-10 provided by law or for purposes allowed under Chapter 503,
5-11 Transportation Code [resale]; [or]
5-12 (B) the [a] sale of a vehicle other than a new
5-13 motor vehicle in which the purchaser is a dealer who holds a
5-14 dealer's general distinguishing number issued under Chapter 503,
5-15 Transportation Code, and who acquires the vehicle either for the
5-16 exclusive purpose of resale in the manner provided by law or for
5-17 purposes allowed under Chapter 503, Transportation Code; or
5-18 (C) the sale to a franchised dealer of a new
5-19 motor vehicle removed from the franchised dealer's inventory for
5-20 the purpose of entering into a contract to lease the vehicle to
5-21 another person, if, immediately after executing the lease contract,
5-22 the franchised dealer transfers title of the vehicle, and assigns
5-23 the lease contract to the lessor of the vehicle [that is operated
5-24 under and in accordance with Article 6686, Revised Civil Statutes
5-25 of Texas, 1925, as amended].
5-26 (3) "Motor Vehicle" includes:
5-27 (A) a self-propelled vehicle designed to
5-28 transport persons or property on a public highway;
5-29 (B) a trailer and semitrailer, including a van,
5-30 flatbed, tank, dumpster, dolly, jeep, stinger, auxiliary axle, or
5-31 converter gear; and
5-32 (C) a house trailer as defined by Chapter 501,
5-33 Transportation Code [the Certificate of Title Act (Article 6687-1,
5-34 Vernon's Texas Civil Statutes)].
5-35 (4) "Motor Vehicle" does not include:
5-36 (A) a device moved only by human power;
5-37 (B) a device used exclusively on stationary
5-38 rails or tracks;
5-39 (C) road-building machinery;
5-40 (D) a mobile office;
5-41 (E) a vehicle with respect to which the
5-42 certificate of title has been surrendered in exchange for:
5-43 (i) a salvage certificate issued pursuant
5-44 to Chapter 501, Transportation Code [the Certificate of Title Act
5-45 (Article 6687-1, Vernon's Texas Civil Statutes)];
5-46 (ii) a certificate of authority issued
5-47 pursuant to Chapter 683, Transportation Code [Article V, Chapter
5-48 741, Acts of the 67th Legislature, Regular Session, 1981 (Article
5-49 4477-9a, Vernon's Texas Civil Statutes)];
5-50 (iii) a nonrepairable motor vehicle
5-51 certificate of title issued pursuant to Chapter 501, Transportation
5-52 Code [Section 37A, Certificate of Title Act (Article 6687-1,
5-53 Vernon's Texas Civil Statutes), as added by H.B. No. 2151, Acts of
5-54 the 74th Legislature, Regular Session, 1995];
5-55 (iv) an ownership document issued by
5-56 another state if the document is comparable to a document issued
5-57 pursuant to Subparagraph (i), (ii), or (iii); or
5-58 (F) a vehicle that has been declared a total
5-59 loss by an insurance company pursuant to the settlement or
5-60 adjustment of a claim.
5-61 (15) "Seller-financed sale" means a retail sale of a
5-62 motor vehicle by a dealer licensed under Chapter 503,
5-63 Transportation Code [Article 6686, Revised Statutes], in which the
5-64 seller collects all or part of the total consideration in periodic
5-65 payments and retains a lien on the motor vehicle until all payments
5-66 have been received. The term does not include a:
5-67 (A) retail sale of a motor vehicle in which a
5-68 person other than the seller provides the consideration for the
5-69 sale and retains a lien on the motor vehicle as collateral;
6-1 (B) lease; or
6-2 (C) rental.
6-3 (17) "Lessor" means a person who acquires title to a
6-4 new motor vehicle for the purpose of leasing the vehicle to another
6-5 person.
6-6 (18) "New motor vehicle" means a motor vehicle that,
6-7 without regard to mileage, has not been the subject of a retail
6-8 tax.
6-9 (19) "Franchised dealer" has the meaning assigned the
6-10 term by Chapter 503, Transportation Code.
6-11 SECTION 22. Subsection (a), Section 152.028, Tax Code, is
6-12 amended to read as follows:
6-13 (a) A use tax is imposed on the operator of a motor vehicle
6-14 that was purchased tax-free under Section 152.092 [152.090] of this
6-15 code and that is brought back into this state for use on the public
6-16 highways of this state. The tax is imposed at the time the motor
6-17 vehicle is brought back into this state.
6-18 SECTION 23. Section 152.0411, Tax Code, is amended by
6-19 amending Subsections (a) and (e) and adding Subsection (f) to read
6-20 as follows:
6-21 (a) Except as provided by this section, a [A] seller who
6-22 makes a sale subject to the sales tax imposed by Section 152.021
6-23 shall add the amount of the tax to the sales price, and when the
6-24 amount of the tax is added:
6-25 (1) it is a debt of the purchaser to the seller until
6-26 paid; and
6-27 (2) if unpaid, it is recoverable at law in the same
6-28 manner as the original sales price.
6-29 (e) This section applies only to a sale in which the seller
6-30 is a motor vehicle dealer who holds a dealer license issued under
6-31 Chapter 503, Transportation Code [pursuant to the authority of
6-32 Article 6686, Revised Statutes], or the Texas Motor Vehicle
6-33 Commission Code (Article 4413(36), Vernon's Texas Civil Statutes).
6-34 (f) This section does not apply to the sale of a motor
6-35 vehicle with a gross weight in excess of 11,000 pounds. The seller
6-36 of a motor vehicle with a gross weight in excess of 11,000 pounds
6-37 shall maintain records of the sale in the manner and form, and
6-38 containing the information, required by the comptroller.
6-39 SECTION 24. Subsection (e), Section 152.063, Tax Code, is
6-40 amended to read as follows:
6-41 (e) For a retail sale for which the seller receives full
6-42 payment at the time of sale, the seller shall keep, at the seller's
6-43 principal office for at least four years from the date of the sale,
6-44 documentation of complete payment in the form of:
6-45 (1) a copy of the payment instrument or a receipt for
6-46 cash received; and
6-47 (2) a copy of the receipt for title application,
6-48 registration, and motor vehicle tax issued by the county tax
6-49 assessor-collector [or a written statement by the purchaser that:]
6-50 [(A) is signed and dated;]
6-51 [(B) indicates the date on which the seller
6-52 provided to the purchaser each of the documents necessary to apply
6-53 for the title, register the vehicle, and pay the motor vehicle
6-54 sales tax; and]
6-55 [(C) includes a statement that the seller
6-56 advised the purchaser that the purchaser must pay a tax to the
6-57 county tax assessor-collector].
6-58 SECTION 25. Subsections (c), (d), and (e), Section 152.0635,
6-59 Tax Code, are amended to read as follows:
6-60 (c) For retail sales paid in full at the time of sale, the
6-61 seller shall keep at the seller's principal office for at least
6-62 four years from the date of the sale documentation of complete
6-63 payment in the form of:
6-64 (1) a copy of the payment instrument or a receipt for
6-65 cash received; and
6-66 (2) a copy of the receipt for title application,
6-67 registration, and motor vehicle tax issued by the county tax
6-68 assessor-collector [or a statement by the purchaser that is signed
6-69 and dated and indicates the date that each of the documents
7-1 necessary to apply for the title, register the vehicle, and pay the
7-2 motor vehicle sales tax were provided to the purchaser by the
7-3 seller].
7-4 (d) [The document required under Subsection (c)(2) shall
7-5 also include a statement that the seller advised the purchaser that
7-6 the purchaser must pay a tax to the county tax assessor-collector.]
7-7 [(e)] For sales for resale, the seller shall keep at the
7-8 seller's principal office for at least four years from the date of
7-9 the sale the purchaser's written statement of resale on a form
7-10 prescribed by the comptroller.
7-11 SECTION 26. Subsection (d), Section 152.066, Tax Code, is
7-12 amended to read as follows:
7-13 (d) Except in the case of the gross receipts tax, interest
7-14 begins to accrue on delinquent taxes 60 days after the day on which
7-15 the joint statement [affidavit] was executed. Delinquent taxes on
7-16 gross rental receipts draw interest beginning 60 days from the due
7-17 date.
7-18 SECTION 27. Subsection (b), Section 152.069, Tax Code, is
7-19 amended to read as follows:
7-20 (b) The seller shall provide to the county tax
7-21 assessor-collector a joint statement [affidavit] as prescribed by
7-22 Section 152.062 in lieu of the motor vehicle sales tax imposed by
7-23 Section 152.021. The statement [affidavit] shall include the
7-24 seller's permit identification number issued by the comptroller.
7-25 SECTION 28. Subsections (b) and (g), Section 153.017, Tax
7-26 Code, are amended to read as follows:
7-27 (b) An agreement may provide for:
7-28 (1) determining the base state for motor fuel users;
7-29 (2) user records requirements;
7-30 (3) audit procedures;
7-31 (4) exchange of information;
7-32 (5) persons eligible for tax licensing;
7-33 (6) licensing and license revocation procedures,
7-34 permits, penalties, and fees;
7-35 (7) defining qualified motor vehicles;
7-36 (8) determining bonding procedures, types, and
7-37 amounts;
7-38 (9) specifying reporting requirements and periods;
7-39 (10) defining refund procedures and limitations,
7-40 including the payment of interest;
7-41 (11) defining uniform penalties, fees, and interest
7-42 rates;
7-43 (12) determining methods for collecting motor fuel
7-44 taxes and for collecting and forwarding [of] motor fuel taxes,
7-45 other than penalties, [and interest] due to another jurisdiction;
7-46 (13) the temporary remittal of funds equal to the
7-47 amount of the taxes[, penalties,] and interest due to another
7-48 jurisdiction but not otherwise collected, subject to appropriation
7-49 of funds for that purpose; and
7-50 (14) other provisions to facilitate the administration
7-51 of the agreement.
7-52 (g) The comptroller may segregate in a separate fund or
7-53 account the amount of motor fuel taxes, other than penalties,
7-54 estimated to be due to other jurisdictions, motor fuel taxes [or
7-55 otherwise] subject to refund during the fiscal year, [penalties and
7-56 interest on those taxes due other jurisdictions,] licensing fees,
7-57 and other costs collected under the agreement. On a determination
7-58 of an amount held that is due to be remitted to another
7-59 jurisdiction, the comptroller may issue a warrant or make an
7-60 electronic transfer of the amount as necessary to carry out the
7-61 purposes of the agreement. An auditing cost, membership fee, and
7-62 other cost associated with the agreement may be paid from interest
7-63 earned on funds segregated under this subsection. Any interest
7-64 earnings in excess of the costs associated with the agreement shall
7-65 be credited to general revenue.
7-66 SECTION 29. Section 153.1195, Tax Code, is amended to read
7-67 as follows:
7-68 Sec. 153.1195. [REFUNDS AND] CREDITS FOR BAD DEBTS. (a) A
7-69 permitted distributor may take a credit on the monthly report to be
8-1 filed with [against taxes to be remitted to] the comptroller [or
8-2 claim a refund on taxes paid to the comptroller] if:
8-3 (1) the distributor has paid the taxes imposed by this
8-4 subchapter on gasoline sold on account;
8-5 (2) the distributor determines that the account is
8-6 uncollectable and worthless; and
8-7 (3) the account is written off as a bad debt on the
8-8 accounting books of the distributor.
8-9 (b) The amount of the credit that may be taken [or refund
8-10 that may be claimed] under Subsection (a) of this section may equal
8-11 but may not exceed the amount of taxes paid on the gasoline to
8-12 which the written-off account applies.
8-13 (c) If, after a credit is taken [or a refund is paid] under
8-14 Subsection (a) of this section, the account on which the credit [or
8-15 refund] was based is paid, or if the comptroller otherwise
8-16 determines that the credit [or refund] was not authorized by
8-17 Subsection (a) of this section, the unpaid taxes shall be paid by
8-18 the distributor taking the credit [or to whom the refund was made],
8-19 plus a penalty of 10 percent of the amount of the unpaid taxes and
8-20 interest at the rate provided by Section 111.060 of this code
8-21 beginning on the day that the credit was taken [or the refund was
8-22 made].
8-23 (d) This section does not apply to a sale of gasoline that
8-24 is delivered into the fuel supply tank of a motor vehicle or a
8-25 motorboat and for which payment is made through the use and
8-26 acceptance of a credit card.
8-27 SECTION 30. Subsection (f), Section 153.206, Tax Code, is
8-28 amended to read as follows:
8-29 (f) If diesel fuel is purchased, in a single delivery of
8-30 5,000 gallons or more, or in lesser quantities where required by
8-31 city ordinance, by any person for the purpose of resale, the
8-32 seller, supplier [distributor], or broker shall sell the product to
8-33 the retailer or any other person purchasing the product on the
8-34 basis of temperature-corrected gallonage to 60 degrees Fahrenheit
8-35 and the tax shall be computed and paid over to the state on the
8-36 temperature-corrected basis. All other sales shall be reported to
8-37 the comptroller on the basis of gross or volumetric gallons of
8-38 taxable diesel fuel sold.
8-39 SECTION 31. Section 153.2225, Tax Code, is amended to read
8-40 as follows:
8-41 Sec. 153.2225. [REFUNDS AND] CREDITS FOR BAD DEBTS. (a) A
8-42 permitted supplier may take a credit on the monthly report to be
8-43 filed with [against taxes to be remitted to] the comptroller [or
8-44 claim a refund on taxes paid to the comptroller] if:
8-45 (1) the supplier has paid the taxes imposed by this
8-46 subchapter on diesel fuel sold on account;
8-47 (2) the supplier determines that the account is
8-48 uncollectable and worthless; and
8-49 (3) the account is written off as a bad debt on the
8-50 accounting books of the supplier.
8-51 (b) The amount of the credit that may be taken [or refund
8-52 that may be claimed] under Subsection (a) of this section may equal
8-53 but may not exceed the amount of taxes paid on the diesel fuel to
8-54 which the written-off account applies.
8-55 (c) If, after a credit is taken [or a refund is paid] under
8-56 Subsection (a) of this section, the account on which the credit [or
8-57 refund] was based is paid, or if the comptroller otherwise
8-58 determines that the credit [or refund] was not authorized by
8-59 Subsection (a) of this section, the unpaid taxes shall be paid by
8-60 the supplier taking the credit [or to whom the refund was made],
8-61 plus a penalty of 10 percent of the amount of the unpaid taxes and
8-62 interest at the rate provided by Section 111.060 of this code
8-63 beginning on the day that the credit was taken [or the refund was
8-64 made].
8-65 (d) This section does not apply to a sale of diesel fuel
8-66 that is delivered into the fuel supply tank of a motor vehicle or
8-67 motorboat and for which payment is made through the use and
8-68 acceptance of a credit card.
8-69 SECTION 32. Subsection (f), Section 201.057, Tax Code, is
9-1 amended to read as follows:
9-2 (f) To qualify for the exemption or tax reduction provided
9-3 by this section, the person responsible for paying the tax must
9-4 apply to the comptroller. The application must contain the
9-5 certification of the commission that the well produces high-cost
9-6 gas and, if the application is for a well spudded or completed
9-7 after September 1, 1995, must contain a report of drilling and
9-8 completion costs incurred for each well on a form and in the detail
9-9 as determined by the comptroller. Drilling and completion costs
9-10 for a recompletion shall only include current and contemporaneous
9-11 costs associated with the recompletion. An application to the
9-12 comptroller for certification according to Subsection (a)(2)(A)
9-13 must [may not] be filed with the comptroller at the later of
9-14 [after] the 180th day after the date of first [day of] production
9-15 or the 45th day after the date of approval by the commission. An
9-16 application to the comptroller for certification according to
9-17 Subsection (a)(2)(B) may not be filed before January 1, 1990, or
9-18 after December 31, 1998. The comptroller shall approve the
9-19 application of a person who demonstrates that the gas is eligible
9-20 for the exemption or tax reduction. The comptroller may require a
9-21 person applying for the exemption or tax reduction to provide any
9-22 relevant information in the person's monthly report that the
9-23 comptroller considers necessary to administer this section. The
9-24 commission shall notify the comptroller in writing immediately if
9-25 it determines that an oil or gas well previously certified as
9-26 producing high-cost gas does not produce high-cost gas or if it
9-27 takes any action or discovers any information that affects the
9-28 eligibility of gas for an exemption or tax reduction under this
9-29 section.
9-30 SECTION 33. Section 211.102, Tax Code, is amended to read as
9-31 follows:
9-32 Sec. 211.102. DAY ON WHICH PAYMENT IS DUE. Except as
9-33 provided by Sections 211.103 and 211.104(b), payment [Payment] of a
9-34 tax imposed by Section 211.051, 211.052, or 211.053 of this code on
9-35 a decedent's estate is due nine months after the day of the
9-36 decedent's death.
9-37 SECTION 34. Section 211.104, Tax Code, is amended to read as
9-38 follows:
9-39 Sec. 211.104. REPORT OF DETERMINATION OF FEDERAL TAX.
9-40 (a) Within 30 days after receiving notice or information of the
9-41 final assessment and determination of the value of the taxable
9-42 estate assessed and determined by the federal government for the
9-43 purpose of fixing federal estate taxes on that estate, the personal
9-44 representative shall make to the comptroller a report of the value
9-45 of the estate as so fixed and determined. The report shall be made
9-46 in a form and contain information as the comptroller directs.
9-47 (b) Any additional tax due by a decedent's estate as a
9-48 result of an internal revenue service audit or federal tax court
9-49 decision shall be paid to the comptroller not later than the 30th
9-50 day after the date the personal representative receives the notice
9-51 or information of the final assessment and determination of value
9-52 of the taxable estate by the federal government for the purpose of
9-53 fixing federal estate taxes on that estate. The comptroller shall
9-54 issue a determination if any additional amounts owed to the
9-55 comptroller are not remitted with a copy of the audit or tax court
9-56 changes.
9-57 SECTION 35. Subchapter C, Chapter 211, Tax Code, is amended
9-58 by adding Section 211.111 to read as follows:
9-59 Sec. 211.111. LIMITATIONS. (a) The period of limitation
9-60 provided under Section 111.201 does not begin to run in favor of a
9-61 decedent's estate, the estate's personal representative, a
9-62 transferee, a distributee, or any other person liable under Section
9-63 211.108 or 211.201 until the tax liability of the decedent's estate
9-64 becomes final. If an extension of time for filing the return or
9-65 paying the tax is granted to the decedent's estate by the
9-66 comptroller under Section 211.103, the extension tolls the
9-67 beginning of the limitation period for the estate's personal
9-68 representative, transferees, distributees, and other persons.
9-69 (b) A limitation period does not begin to run in favor of a
10-1 decedent's estate, any personal representative, transferee,
10-2 distributee, or other person until the comptroller receives the
10-3 notice or information of the final assessment and determination of
10-4 the value of the decedent's estate for purpose of fixing federal
10-5 estate taxes on that estate, as required under Section 211.104.
10-6 (c) If property is transferred from a decedent's estate
10-7 after the comptroller receives notice or information as required
10-8 under Section 211.104 of the final assessment and determination of
10-9 the value of the estate by the federal government and the tax
10-10 remains unpaid, the limitation period does not begin to run in
10-11 favor of a person liable under Section 211.108 or 211.201 until the
10-12 comptroller learns of the transfer.
10-13 SECTION 36. Section 211.251, Tax Code, is amended to read as
10-14 follows:
10-15 Sec. 211.251. COMPTROLLER'S AUTHORITY TO EXAMINE BOOKS AND
10-16 OTHER PROPERTY. The comptroller may examine books, records,
10-17 documents, or other property of a decedent's estate or of a
10-18 personal representative, transferee, or distributee of a decedent's
10-19 estate at any time [if] the examination is necessary for the
10-20 comptroller to enforce this chapter without regard to the period
10-21 provided by Section 111.0041.
10-22 SECTION 37. Subchapter B, Chapter 403, Government Code, is
10-23 amended by adding Section 403.026 to read as follows:
10-24 Sec. 403.026. ELECTRONIC STORAGE AND MAINTENANCE OF RECORDS.
10-25 (a) The comptroller may store and maintain electronically a state
10-26 record or an essential record if:
10-27 (1) the method used to store and maintain the record
10-28 allows accurate reproduction of the record;
10-29 (2) the method used to store and maintain the record
10-30 conforms with any standards prescribed by the records preservation
10-31 officer in conformity with any applicable rules of the National
10-32 Institute of Standards and Technology, except that those standards
10-33 do not apply to the extent they conflict with this section; and
10-34 (3) the place and manner of safekeeping the medium or
10-35 equipment on which the record is stored and maintained conforms
10-36 with the records preservation officer's requirements under Section
10-37 441.059(a), except that the officer may not prohibit the
10-38 comptroller from retaining possession of that medium or equipment.
10-39 (b) An accurate reproduction of a state record that is
10-40 stored and maintained according to this section is a preservation
10-41 duplicate of the record for purposes of Sections 441.058 and
10-42 441.059, without regard to whether the records preservation
10-43 officer:
10-44 (1) made the reproduction; or
10-45 (2) designated the reproduction as a preservation
10-46 duplicate.
10-47 (c) An accurate reproduction of an essential record that is
10-48 stored and maintained according to this section is a photographic
10-49 reproduction of the record for purposes of Section 441.038(f).
10-50 (d) An accurate reproduction of a state record or an
10-51 essential record may be in tangible or intangible form, including
10-52 an electronic or optical image of the record.
10-53 (e) In this section:
10-54 (1) "Essential record" means written or graphical
10-55 material that is made or received by the comptroller in the conduct
10-56 of official state business and that is filed or intended to be
10-57 preserved permanently or for a definite period as a record of that
10-58 business.
10-59 (2) "Records preservation officer" means the director
10-60 of the records management division of the Texas State Library.
10-61 (3) "State record" means a document, book, paper,
10-62 photograph, sound recording, or other material, without regard to
10-63 physical form or characteristic, that is made or received by the
10-64 comptroller according to law or in connection with the transaction
10-65 of official state business.
10-66 SECTION 38. Section 2155.004, Government Code, is amended to
10-67 read as follows:
10-68 Sec. 2155.004. CERTAIN BIDS AND CONTRACTS PROHIBITED.
10-69 (a) A state agency may not accept a bid or award a contract that
11-1 includes proposed financial participation by a person who received
11-2 compensation from the agency to participate in preparing the
11-3 specifications or request for proposals on which the bid or
11-4 contract is based.
11-5 (b) A state agency may not accept a bid or award a contract
11-6 to any individual not residing in this state or business entity not
11-7 incorporated in or whose principal domicile is not in this state
11-8 unless the individual or business entity:
11-9 (1) holds a permit issued by the comptroller to
11-10 collect or remit all state and local sales and use taxes that
11-11 become due and owing as a result of the individual's or entity's
11-12 business in this state; or
11-13 (2) certifies that it does not sell tangible personal
11-14 property or services that are subject to the state and local sales
11-15 and use tax.
11-16 (c) A bid or award subject to the requirements of this
11-17 section must include the following statement:
11-18 "Under Section 2155.004, Government Code, the vendor
11-19 certifies that the individual or business entity named in this bid
11-20 or contract is not ineligible to receive the specified contract and
11-21 acknowledges that this contract may be terminated and payment
11-22 withheld if this certification is inaccurate."
11-23 (d) If a state agency determines that an individual or
11-24 business entity holding a state contract was ineligible to have the
11-25 contract accepted or awarded under Subsection (a) or (b), the state
11-26 agency may immediately terminate the contract without further
11-27 obligation to the vendor.
11-28 (e) If the certification required under Subsection (b)(2) is
11-29 shown to be false, the vendor is liable to the state for attorney's
11-30 fees, the costs necessary to complete the contract, including the
11-31 cost of advertising and awarding a second contract, and any other
11-32 damages provided by law or contract.
11-33 (f) This section does not create a cause of action to
11-34 contest a bid or award of a state contract.
11-35 (g) In the absence of a certification by the vendor under
11-36 Subsection (b)(2), the purchasing state agency shall determine if a
11-37 prospective vendor holds a permit for the collection and remission
11-38 of state and local sales and use taxes.
11-39 (h) This section does not prohibit a bidder or contract
11-40 participant from providing free technical assistance to a state
11-41 agency.
11-42 SECTION 39. Subsection (a), Section 361.472, Health and
11-43 Safety Code, is amended to read as follows:
11-44 (a) A person in the business of selling new or good used
11-45 tires for use on a vehicle, or a person in the business of selling
11-46 used vehicles or used vehicle parts who sells or offers to sell new
11-47 or good used tires not for resale shall collect at the time and
11-48 place of sale a waste tire recycling fee for each tire sold as
11-49 follows:
11-50 (1) $2 for each new tire that has a rim diameter of 12
11-51 inches or more but less than 17.5 inches and $1 for each good used
11-52 tire that has a rim diameter of 12 inches or more but less than
11-53 17.5 inches;
11-54 (2) $3.50 for each new tire that has a rim diameter of
11-55 17.5 inches or greater, other than an off-the-road tire intended
11-56 for use on heavy machinery, including an earthmover, a
11-57 loader/dozer, a grader, or mining equipment; and
11-58 (3) $2 for a new motorcycle tire, regardless of the
11-59 rim diameter.
11-60 SECTION 40. Subdivision (2), Section 16A, Article 8817,
11-61 Revised Statutes, is amended to read as follows:
11-62 (2) Machines which are exhibited by a nonlicensed owner
11-63 exempt under this section must be registered with the Comptroller.
11-64 The owner shall obtain a registration certificate each year. The
11-65 registration certificate shall show the name and address of the
11-66 location of each machine and shall certify that the machine has a
11-67 valid tax stamp affixed to it. The owner shall obtain his
11-68 registration certificate by filing an [sworn] application in the
11-69 form prescribed by the Comptroller.
12-1 SECTION 41. Section 2, Article 1.28, Insurance Code, is
12-2 amended to read as follows:
12-3 Sec. 2. (a) A [The amount of the examination expenses
12-4 incurred by representatives of the State Board of Insurance that is
12-5 directly attributable to an examination of the books, records,
12-6 accounts, and principal offices of a domestic insurance company
12-7 located outside this state as provided by this article is not
12-8 allowed as a] credit on or offset to the amount of premium taxes to
12-9 be paid by the domestic insurance company to the state in a taxable
12-10 year may not be allowed on:
12-11 (1) examination expenses incurred by representatives
12-12 of the department that are directly attributable to an examination
12-13 of the books, records, accounts, or principal offices of a domestic
12-14 insurance company located outside this state;
12-15 (2) examination expenses or fees paid to a state other
12-16 than this state; or
12-17 (3) examination expenses paid in a different taxable
12-18 year.
12-19 (b) This[, and this] article prevails over any conflicting
12-20 provisions in Articles 1.16, 4.10, 9.59, and 4.11 of this code or
12-21 any other law of this state.
12-22 SECTION 42. Subsection (a), Article 4.17, Insurance Code, is
12-23 amended to read as follows:
12-24 (a) The commissioner shall annually determine the rate of
12-25 assessment of a maintenance tax to be paid on an annual,
12-26 semiannual, or other periodic basis, as determined by the
12-27 comptroller. The rate of assessment may not exceed .04 percent of
12-28 the correctly reported gross premiums of life, health, and accident
12-29 insurance coverages and the gross considerations for annuity and
12-30 endowment contracts collected by all authorized insurers writing
12-31 life, health, and accident insurance, annuity, or endowment
12-32 contracts in this state. The comptroller shall collect the
12-33 maintenance tax. For purposes of this article, the gross premiums
12-34 on which an assessment is based may not include premiums received
12-35 from this state or the United States for insurance contracted for
12-36 by this state or the United States for the purpose of providing
12-37 welfare benefits to designated welfare recipients or for insurance
12-38 contracted for by this state or the United States in accordance
12-39 with or in furtherance of Title 2, Human Resources Code, or the
12-40 federal Social Security Act (42 U.S.C. Section 301 et seq.).
12-41 SECTION 43. Subdivision (4), Subsection (b), Section 32,
12-42 Texas Health Maintenance Organization Act (Article 20A.32, Vernon's
12-43 Texas Insurance Code), is amended to read as follows:
12-44 (4) A [The amount directly attributable to an
12-45 examination of the books, records, accounts, or principal offices
12-46 of a health maintenance organization located outside this state may
12-47 not be allowed as a] credit against the amount of premium taxes to
12-48 be paid by the health maintenance organization in a taxable year
12-49 may not be allowed on:
12-50 (A) expenses directly attributable to an
12-51 examination of the books, records, accounts, or principal offices
12-52 of a health maintenance organization located outside this state;
12-53 (B) examination expenses or fees paid to a state
12-54 other than this state; or
12-55 (C) examination fees paid in a different taxable
12-56 year.
12-57 SECTION 44. Subsection (d), Section 33, Texas Health
12-58 Maintenance Organization Act (Article 20A.33, Vernon's Texas
12-59 Insurance Code), is amended to read as follows:
12-60 (d) The commissioner shall annually determine the rate of
12-61 assessment of a per capita maintenance tax to be paid on an annual
12-62 or semiannual basis, on the correctly reported gross revenues for
12-63 the issuance of health maintenance certificates or contracts
12-64 collected by all authorized health maintenance organizations
12-65 issuing such coverages in this state. The rate of assessment may
12-66 not exceed $2 for each enrollee. The rate of assessment may differ
12-67 between basic health care plans and single health care service
12-68 plans and shall equitably reflect any differences in regulatory
12-69 resources attributable to each type of plan. The comptroller shall
13-1 collect the maintenance tax. For purposes of this section, the
13-2 amount of maintenance tax assessed may not be computed on enrollees
13-3 who as individual certificate holders or their dependents are
13-4 covered by a master group policy paid for by revenues received from
13-5 this state or the United States for insurance contracted for by
13-6 this state or the United States for the purpose of providing
13-7 welfare benefits to designated welfare recipients or for insurance
13-8 contracted for by this state or the United States in accordance
13-9 with or in furtherance of Title 2, Human Resources Code, or the
13-10 federal Social Security Act (42 U.S.C. Section 301 et seq.).
13-11 SECTION 45. The following are repealed:
13-12 (1) Section 111.0022, Tax Code, as added by Section
13-13 3.28, Chapter 685, Acts of the 73rd Legislature, 1993; and
13-14 (2) Section 112.002, Tax Code.
13-15 SECTION 46. (a) Except as otherwise provided by this
13-16 section, this Act takes effect September 1, 1997.
13-17 (b) Sections 10 through 31 of this Act take effect
13-18 October 1, 1997.
13-19 SECTION 47. The importance of this legislation and the
13-20 crowded condition of the calendars in both houses create an
13-21 emergency and an imperative public necessity that the
13-22 constitutional rule requiring bills to be read on three several
13-23 days in each house be suspended, and this rule is hereby suspended.
13-24 * * * * *