1-1 AN ACT
1-2 relating to the authority of certain taxing entities to repeal the
1-3 local sales and use tax exemption for telecommunications services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 322.109, Tax Code, is amended by amending
1-6 Subsection (b), adding a new Subsection (d), and redesignating
1-7 existing Subsection (d) as (e) to read as follows:
1-8 (b) Except as provided by Subsection (d), the [The] board of
1-9 a taxing entity may, by a majority vote of the board in the manner
1-10 required for the adoption of other orders, repeal the application
1-11 of the exemption provided by Subsection (a) for telecommunications
1-12 services sold within the city.
1-13 (d) The governing board of a taxing entity created under
1-14 Chapter 451, Transportation Code, may not repeal the application of
1-15 the exemption provided by Subsection (a) unless the repeal is first
1-16 approved by a majority of the members of the governing body of each
1-17 municipality that created the taxing entity. A reinstatement of
1-18 the exemption must be approved in the same manner.
1-19 (e) [(d)] A vote of a taxing entity board repealing the
1-20 application of or reinstating the exemption must be entered in the
1-21 minutes of the entity. The entity board chairman or secretary
1-22 shall send to the comptroller by United States certified or
1-23 registered mail a copy of each order adopted under this section.
1-24 The repeal of the application of the exemption or a reinstated
2-1 exemption takes effect within the entity on the first day of the
2-2 first calendar quarter after the expiration of the first complete
2-3 calendar quarter after the date on which the comptroller receives a
2-4 copy of the order.
2-5 SECTION 2. The change in law made by this Act applies only
2-6 to an exemption provided by Section 322.109, Tax Code, that has not
2-7 been repealed before the effective date of this Act.
2-8 SECTION 3. The importance of this legislation and the
2-9 crowded condition of the calendars in both houses create an
2-10 emergency and an imperative public necessity that the
2-11 constitutional rule requiring bills to be read on three several
2-12 days in each house be suspended, and this rule is hereby suspended,
2-13 and that this Act take effect and be in force from and after its
2-14 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2858 was passed by the House on May
12, 1999, by the following vote: Yeas 138, Nays 0, 2 present, not
voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2858 was passed by the Senate on May
26, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor