By Goodman H.B. No. 2088
76R7039 DAK-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the application of the sales and use tax to certain
1-3 services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 151, Tax Code, is amended
1-6 by adding Sections 151.00393 and 151.00394 to read as follows:
1-7 Sec. 151.00393. "INTERNET." "Internet" means collectively
1-8 the myriad of computer and telecommunications facilities, including
1-9 equipment and operating software, that comprise the interconnected
1-10 worldwide network of networks that employ the Transmission Control
1-11 Protocol/Internet Protocol, or any predecessor or successor
1-12 protocols to the protocol, to communicate information of all kinds
1-13 by wire or radio.
1-14 Sec. 151.00394. "INTERNET ACCESS SERVICE." "Internet access
1-15 service" means a service that enables users to access content,
1-16 information, electronic mail, or other services offered over the
1-17 Internet and may also include access to proprietary content,
1-18 information, and other services as part of a package of services
1-19 offered to consumers.
1-20 SECTION 2. Section 151.0101(a), Tax Code, is amended to read
1-21 as follows:
1-22 (a) "Taxable services" means:
1-23 (1) amusement services;
1-24 (2) cable television services;
2-1 (3) personal services;
2-2 (4) motor vehicle parking and storage services;
2-3 (5) the repair, remodeling, maintenance, and
2-4 restoration of tangible personal property, except:
2-5 (A) aircraft;
2-6 (B) a ship, boat, or other vessel, other than:
2-7 (i) a taxable boat or motor as defined by
2-8 Section 160.001;
2-9 (ii) a sports fishing boat; or
2-10 (iii) any other vessel used for pleasure;
2-11 (C) the repair, maintenance, and restoration of
2-12 a motor vehicle; and
2-13 (D) the repair, maintenance, creation, and
2-14 restoration of a computer program, including its development and
2-15 modification, not sold by the person performing the repair,
2-16 maintenance, creation, or restoration service;
2-17 (6) telecommunications services;
2-18 (7) credit reporting services;
2-19 (8) debt collection services;
2-20 (9) insurance services;
2-21 (10) [information services;]
2-22 [(11)] real property services;
2-23 (11) [(12) data processing services;]
2-24 [(13)] real property repair and remodeling;
2-25 (12) [(14)] security services; and
2-26 (13) [(15)] telephone answering services.
2-27 SECTION 3. Section 151.0103, Tax Code, is amended to read as
3-1 follows:
3-2 Sec. 151.0103. TELECOMMUNICATIONS SERVICES. For the
3-3 purposes of this title only, "telecommunications services" means
3-4 the electronic or electrical transmission, conveyance, routing, or
3-5 reception of sounds, signals, data, or information utilizing wires,
3-6 cable, radio waves, microwaves, satellites, fiber optics, or any
3-7 other method now in existence or that may be devised, including but
3-8 not limited to long-distance telephone service. The term does not
3-9 include:
3-10 (1) the storage of data or information for subsequent
3-11 retrieval or the processing, or reception and processing, of data
3-12 or information intended to change its form or content; [or]
3-13 (2) the sale or use of a telephone prepaid calling
3-14 card; or
3-15 (3) Internet access service.
3-16 SECTION 4. Section 151.320(b), Tax Code, is amended to read
3-17 as follows:
3-18 (b) "Magazine" means a publication that is usually
3-19 paperbacked and sometimes illustrated, that appears at a regular
3-20 interval, and that contains stories, articles, and essays by
3-21 various writers and advertisements. ["Magazine" does not mean the
3-22 publication of current information which is taxable pursuant to
3-23 Section 151.0038 of this code as an "information service."]
3-24 SECTION 5. Sections 151.0035 and 151.0038, Tax Code, are
3-25 repealed.
3-26 SECTION 6. (a) This Act takes effect October 1, 1999.
3-27 (b) The change in law made by this Act does not affect taxes
4-1 imposed before the effective date of this Act, and the law in
4-2 effect before the effective date of this Act is continued in effect
4-3 for purposes of the liability for and collection of those taxes.
4-4 SECTION 7. The importance of this legislation and the
4-5 crowded condition of the calendars in both houses create an
4-6 emergency and an imperative public necessity that the
4-7 constitutional rule requiring bills to be read on three several
4-8 days in each house be suspended, and this rule is hereby suspended.