1-1 By: Siebert (Senate Sponsor - Wentworth) H.B. No. 2858
1-2 (In the Senate - Received from the House May 13, 1999;
1-3 May 13, 1999, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 14, 1999, reported favorably by
1-5 the following vote: Yeas 4, Nays 0; May 14, 1999, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the authority of certain taxing entities to repeal the
1-10 local sales and use tax exemption for telecommunications services.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 322.109, Tax Code, is amended by amending
1-13 Subsection (b), adding a new Subsection (d), and redesignating
1-14 existing Subsection (d) as (e) to read as follows:
1-15 (b) Except as provided by Subsection (d), the [The] board of
1-16 a taxing entity may, by a majority vote of the board in the manner
1-17 required for the adoption of other orders, repeal the application
1-18 of the exemption provided by Subsection (a) for telecommunications
1-19 services sold within the city.
1-20 (d) The governing board of a taxing entity created under
1-21 Chapter 451, Transportation Code, may not repeal the application of
1-22 the exemption provided by Subsection (a) unless the repeal is first
1-23 approved by a majority of the members of the governing body of each
1-24 municipality that created the taxing entity. A reinstatement of
1-25 the exemption must be approved in the same manner.
1-26 (e) [(d)] A vote of a taxing entity board repealing the
1-27 application of or reinstating the exemption must be entered in the
1-28 minutes of the entity. The entity board chairman or secretary
1-29 shall send to the comptroller by United States certified or
1-30 registered mail a copy of each order adopted under this section.
1-31 The repeal of the application of the exemption or a reinstated
1-32 exemption takes effect within the entity on the first day of the
1-33 first calendar quarter after the expiration of the first complete
1-34 calendar quarter after the date on which the comptroller receives a
1-35 copy of the order.
1-36 SECTION 2. The change in law made by this Act applies only
1-37 to an exemption provided by Section 322.109, Tax Code, that has not
1-38 been repealed before the effective date of this Act.
1-39 SECTION 3. The importance of this legislation and the
1-40 crowded condition of the calendars in both houses create an
1-41 emergency and an imperative public necessity that the
1-42 constitutional rule requiring bills to be read on three several
1-43 days in each house be suspended, and this rule is hereby suspended,
1-44 and that this Act take effect and be in force from and after its
1-45 passage, and it is so enacted.
1-46 * * * * *