By Maxey H.B. No. 1250
76R3969 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting basic local telecommunications services from
1-3 the sales and use tax.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.0103, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 151.0103. TELECOMMUNICATIONS SERVICES. (a) For the
1-8 purposes of this title only, "telecommunications services" means
1-9 the electronic or electrical transmission, conveyance, routing, or
1-10 reception of sounds, signals, data, or information utilizing wires,
1-11 cable, radio waves, microwaves, satellites, fiber optics, or any
1-12 other method now in existence or that may be devised, including but
1-13 not limited to long-distance telephone service. The term does not
1-14 include:
1-15 (1) the storage of data or information for subsequent
1-16 retrieval or the processing, or reception and processing, of data
1-17 or information intended to change its form or content; [or]
1-18 (2) the sale or use of a telephone prepaid calling
1-19 card; or
1-20 (3) basic local exchange telephone service.
1-21 (b) For purposes of Subsection (a)(3), "basic local exchange
1-22 telephone service" means the provision by a telephone company of
1-23 each access line and each dial tone to a fixed location for
1-24 sending and receiving telecommunications in the telephone company's
2-1 local exchange network. Services are considered to be basic
2-2 whether the customer has access to a private line or party line or
2-3 whether the customer has limited or unlimited access. The term
2-4 does not include long-distance telephone service or enhanced or
2-5 auxiliary services such as PBX-type services, call waiting, call
2-6 forwarding, or other similar services.
2-7 SECTION 2. Section 57.042(9), Utilities Code, is amended to
2-8 read as follows:
2-9 (9) "Telecommunications ["Taxable telecommunications]
2-10 receipts" means:
2-11 (A) taxable telecommunications receipts reported
2-12 under Chapter 151, Tax Code; and
2-13 (B) receipts from basic local exchange telephone
2-14 service exempted from taxation under Section 151.0103 that were
2-15 reported under Chapter 151, Tax Code, as that law existed on
2-16 January 1, 1999.
2-17 SECTION 3. Section 57.048(b), Utilities Code, is amended to
2-18 read as follows:
2-19 (b) The assessment is imposed at the rate of 1.25 percent of
2-20 the [taxable] telecommunications receipts of the telecommunications
2-21 utility or commercial mobile service provider, subject to this
2-22 section.
2-23 SECTION 4. (a) In accordance with Section 311.031(a),
2-24 Government Code, which gives effect to a substantive amendment
2-25 enacted by the same legislature that codifies the amended statute,
2-26 the text of Sections 57.042(9) and 57.048(b), Utilities Code, as
2-27 set out in this Act, gives effect to changes made by Chapter 145,
3-1 Acts of the 75th Legislature, Regular Session, 1997.
3-2 (b) To the extent of any conflict, this Act controls over
3-3 another Act of the 76th Legislature, Regular Session, 1999,
3-4 relating to nonsubstantive additions and corrections in enacted
3-5 codes.
3-6 SECTION 5. (a) This Act takes effect on the first day of
3-7 the first calendar quarter beginning on or after the earliest date
3-8 that it may take effect under Section 39, Article III, Texas
3-9 Constitution.
3-10 (b) The change in law made by this Act does not affect taxes
3-11 imposed before the effective date of this Act, and the law in
3-12 effect before that date is continued in effect for purposes of the
3-13 liability for and collection of those taxes.
3-14 SECTION 6. The importance of this legislation and the
3-15 crowded condition of the calendars in both houses create an
3-16 emergency and an imperative public necessity that the
3-17 constitutional rule requiring bills to be read on three several
3-18 days in each house be suspended, and this rule is hereby suspended,
3-19 and that this Act take effect and be in force according to its
3-20 terms, and it is so enacted.