By McCall H.B. No. 3212
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to technical changes to statutes involving taxes or fees
1-3 administered by the Comptroller of Public Accounts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 102.075(g), Code of Criminal Procedure,
1-6 is amended to read as follows:
1-7 (g) A municipality or county may retain 10 percent of the
1-8 money collected under this article as a service fee for collection
1-9 if the municipality or county remits the funds to the comptroller
1-10 within the period prescribed in Subsection (f). The municipality
1-11 or county may retain any interest accrued on the money if the
1-12 custodian of the money deposited in the treasury keeps records of
1-13 the amount of money collected under this article that is on deposit
1-14 in the treasury and remits the funds to the comptroller within the
1-15 period prescribed in Subsection (f).
1-16 SECTION 2. Section 12(b), Article 1.14-1, Insurance Code, is
1-17 amended to read as follows:
1-18 (b) The report shall be filed and any tax due shall be paid
1-19 by the insured or by any other person designated by the insured.
1-20 The report and tax are due on or before May 15 [March 1] of the
1-21 calendar year after the calendar year in which the insurance was
2-1 procured, continued, or renewed or on another date prescribed by
2-2 the comptroller.
2-3 SECTION 3. Sections 12(a) and (b), Article 1.14-2, Insurance
2-4 Code are amended to read as follows:
2-5 (a) The premiums charged for surplus lines insurance are
2-6 subject to a premium receipts tax of 4.85 percent of gross premiums
2-7 charged for such insurance. The term premium includes all
2-8 premiums, membership fees, assessments, dues or any other
2-9 consideration for insurance. Such tax shall be in lieu of all
2-10 other insurance taxes. The surplus lines agent shall collect from
2-11 the insured the amount of the tax at the time of delivery of the
2-12 cover note, certificate of insurance, policy or other initial
2-13 confirmation of insurance, in addition to the full amount of the
2-14 gross premium charged by the insurer for the insurance. No agent
2-15 shall absorb such tax nor shall any agent, as an inducement for
2-16 insurance or for any other reason, rebate all or any part of such
2-17 tax or his commission. The surplus lines agent shall file a report
2-18 and pay taxes to the comptroller on or before March 1 of each year
2-19 on forms prescribed by the comptroller. The [the] amount of taxes
2-20 shall be based on gross premiums written or received for such
2-21 insurance placed through an eligible surplus lines insurer during
2-22 the calendar year ending on the preceding December 31. A tax
2-23 prepayment shall be required any time accrued taxes due equal or
2-24 exceed $70,000. The prepayment of the accrued taxes, together with
2-25 a form prescribed by the comptroller, shall be due by the 15th day
3-1 of the month following the month in which accrued taxes total
3-2 $70,000 [and shall pay to the comptroller the tax as provided for
3-3 by this Article]. If a surplus lines policy covers risks or
3-4 exposures only partially in this state, the tax payable shall be
3-5 computed on the portions of the premium which are properly
3-6 allocated to the risks or exposures located in this state. In
3-7 determining the amount of premiums taxable in this state, all
3-8 premiums written, procured, or received in this state and all
3-9 premiums on policies negotiated in this state shall be deemed
3-10 written on property or risks located or resident in this state,
3-11 except such premiums as are properly allocated or apportioned and
3-12 reported as premiums which may be subject to taxation by any other
3-13 state or states. Premiums that are properly allocated to any other
3-14 state or states that are specifically exempt from taxation under
3-15 the regulations of that state or states are not taxable in this
3-16 state. Premiums on risks or exposures which are properly allocated
3-17 to federal waters, international waters or under the jurisdiction
3-18 of a foreign government shall not be taxable by this state. In
3-19 event of cancellation and rewriting of any surplus lines insurance
3-20 contract the additional premium for premium receipts tax purposes
3-21 shall be the premium in excess of the unearned premium of the
3-22 canceled insurance contract.
3-23 (b) All surplus lines premium receipt taxes collected by a
3-24 surplus lines agent are trust funds in his hands [and property of
3-25 the state. Such funds shall be maintained by the surplus lines
4-1 agent in a separate account and shall not be mingled with any other
4-2 funds, either business or private]. Any surplus lines agent who
4-3 fails or refuses to pay over to the state the surplus lines premium
4-4 receipts tax at the time required by [in] this section, or who
4-5 fraudulently withholds or appropriates or otherwise uses such money
4-6 or any portions thereof belonging to the state is guilty of theft
4-7 and shall be punished as provided by law for the crime of theft,
4-8 irrespective of whether such surplus lines agent has or claims to
4-9 have any interest in such money so received by him.
4-10 SECTION 4. Section 9(b), Texas State College and University
4-11 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
4-12 Texas Insurance Code), is amended to read as follows:
4-13 (b) Premiums on policies, insurance contracts, or agreements
4-14 with health maintenance organizations established under this Act
4-15 are not subject to any state tax, regulatory fee, or surcharge,
4-16 including premium or maintenance taxes or fees.
4-17 SECTION 5. Section 11(b), Texas Public School Employees
4-18 Group Insurance Act (Article 3.50-4, Vernon's Texas Insurance
4-19 Code), is amended to read as follows:
4-20 (b) A premium or contribution on a policy, insurance
4-21 contract, or agreement authorized as provided by this article is
4-22 not subject to any state tax, regulatory fee, or surcharge,
4-23 including premium or maintenance taxes or fees.
4-24 SECTION 6. Section 326.029(a), Local Government Code, is
4-25 amended to read as follows:
5-1 (a) If a majority of the votes received in the election
5-2 favor the creation of the district and the adoption of the sales
5-3 and use tax, the commissioners court shall by resolution or
5-4 ordinance declare that the district is created and shall declare
5-5 the amount of the local sales and use tax adopted and enter the
5-6 result in its minutes.
5-7 SECTION 7. Section 326.092(a), Local Government Code, is
5-8 amended to read as follows:
5-9 (a) Chapter 323, Tax Code, to the extent not inconsistent
5-10 with this chapter, governs the imposition, computation,
5-11 administration, and governance of the tax under this subchapter,
5-12 except that Section 323.101, 323.105, [and] 323.404, and 323.406
5-13 through 323.408, Tax Code, do not apply.
5-14 SECTION 8. Section 101.003, Tax Code, is amended by adding
5-15 Subdivision (13) to read as follows:
5-16 (13) "Tax" means a tax, fee, assessment, charge, or
5-17 other amount that the comptroller is authorized to administer.
5-18 SECTION 9. Section 111.0041(b), Tax Code, is amended to read
5-19 as follows:
5-20 (b) This section prevails over any other conflicting
5-21 provision of this title [except Section 191.024(b) of this code].
5-22 SECTION 10. Section 111.104(e), Tax Code, is amended to read
5-23 as follows:
5-24 (e) This section applies to all taxes and license fees
5-25 collected or administered by the comptroller, except the state
6-1 property tax [and those taxes that qualify for refund allowed under
6-2 Section 151.318(g) or (n)].
6-3 SECTION 11. Section 111.107, Tax Code, is amended to read as
6-4 follows:
6-5 Sec. 111.107. When Refund or Credit is Permitted. Except as
6-6 otherwise expressly provided, a person may request a refund or a
6-7 credit or the comptroller may make a refund or issue a credit for
6-8 the overpayment of a tax imposed by this title at any time before
6-9 the expiration of the period during which the comptroller may
6-10 assess a deficiency for the tax and not thereafter unless the
6-11 refund or credit is requested:
6-12 (1) under Subchapter B of Chapter 112 and the refund
6-13 is made or the credit is issued under a court order;
6-14 (2) under the provision of Section 111.104(c)(3)
6-15 applicable to a refund claim filed after a jeopardy or deficiency
6-16 determination becomes final; or
6-17 (3) under Chapter 153, except Section 153.1195(e),
6-18 153.121(d), 153.2225(e), or 153.224(d)[; or]
6-19 [(4) under Section 151.318(g) or (n)].
6-20 SECTION 12. Sections 151.310(c) and (e), Tax Code, are
6-21 amended to read as follows:
6-22 (c) An organization that qualifies for an exemption under
6-23 Subsection (a)(1) or (a)(2) of this section, and each bona fide
6-24 chapter of the organization, may hold two tax-free sales or
6-25 auctions under this subsection during a calendar year and each
7-1 tax-free sale or auction may continue for one day only. The sale
7-2 of a taxable item the sales price of which is $5,000 or less by a
7-3 qualified organization or chapter of the organization at a tax-free
7-4 sale or auction is exempted from the sales tax imposed by
7-5 Subchapter C of this chapter, except that a taxable item
7-6 manufactured by or donated to the qualified organization or chapter
7-7 of the organization may be sold tax free regardless of the sales
7-8 price to any purchaser other than the donor. The storage, use, or
7-9 consumption of a taxable item that is acquired from a qualified
7-10 organization or chapter of the organization at a tax-free sale or
7-11 auction and that is exempted under this subsection from the taxes
7-12 imposed by Subchapter C of this chapter is exempted from the use
7-13 tax imposed by Subchapter D of this chapter until the item is
7-14 resold or subsequently transferred.
7-15 (e) A nonprofit hospital or hospital system that qualifies
7-16 for an exemption under Subsection (a)(2) shall provide community
7-17 benefits that include charity care and government-sponsored
7-18 indigent health care [community benefits] as set forth in
7-19 Subchapter D, Chapter 311, Health and Safety Code. [Subdivision
7-20 (1), (2), (3), (4), (5), (6), (7), or (8) below:]
7-21 [(1) charity care and government-sponsored indigent
7-22 health care are provided at a level which is reasonable in relation
7-23 to the community needs, as determined through the community needs
7-24 assessment, the available resources of the hospital or hospital
7-25 system, and the tax-exempt benefits received by the hospital or
8-1 hospital system;]
8-2 [(2) charity care and government-sponsored indigent
8-3 health care are provided in an amount equal to at least four
8-4 percent of the hospital's or hospital system's net patient revenue;]
8-5 [(3) charity care and government-sponsored indigent
8-6 health care are provided in an amount equal to at least 100 percent
8-7 of the hospital's or hospital system's tax-exempt benefits,
8-8 excluding federal income tax;]
8-9 [(4) for tax periods beginning before January 1, 1996,
8-10 charity care and community benefits are provided in a combined
8-11 amount equal to at least five percent of the hospital's or hospital
8-12 system's net patient revenue, provided that charity care and
8-13 government-sponsored indigent health care are provided in an amount
8-14 equal to at least three percent of net patient revenue;]
8-15 [(5) for tax periods beginning after December 31,
8-16 1995, charity care and community benefits are provided in a
8-17 combined amount equal to at least five percent of the hospital's or
8-18 hospital system's net patient revenue, provided that charity care
8-19 and government-sponsored indigent health care are provided in an
8-20 amount equal to at least four percent of net patient revenue;]
8-21 [(6) a nonprofit hospital that has been designated as
8-22 a disproportionate share hospital under the state Medicaid program
8-23 in the current year or in either of the previous two fiscal years
8-24 is considered to have provided a reasonable amount of charity care
8-25 and government-sponsored indigent health care and is considered in
9-1 compliance with the standards provided by this subsection;]
9-2 [(7) a hospital operated on a nonprofit basis that is
9-3 located in a county with a population of less than 50,000 and in
9-4 which the entire county or the population of the entire county has
9-5 been designated as a health professionals shortage area is
9-6 considered to be in compliance with the standards provided by this
9-7 subsection; or]
9-8 [(8) a hospital providing health care services to
9-9 inpatients or outpatients without receiving any payment for
9-10 providing those services from any source, including the patient or
9-11 person legally obligated to support the patient, third-party
9-12 payors, Medicare, Medicaid, or any other state or local indigent
9-13 care program but excluding charitable donations, legacies,
9-14 bequests, or grants or payments for research, is considered to be
9-15 in compliance with the standards provided by this subsection.]
9-16 [For purposes of satisfying Subdivision (5), a hospital or
9-17 hospital system may not change its existing fiscal year unless the
9-18 hospital or hospital system changes its ownership or corporate
9-19 structure as a result of a sale or merger. For purposes of this
9-20 subsection, a hospital that satisfies Subdivision (1), (6), (7), or
9-21 (8) shall be excluded in determining a hospital system's compliance
9-22 with the standards provided by Subdivision (2), (3), (4), or (5).]
9-23 [For purposes of this subsection, the terms "charity care,"
9-24 "government-sponsored indigent health care," "health care
9-25 organization," "hospital system," "net patient revenue," "nonprofit
10-1 hospital," and "tax-exempt benefits" have the meanings set forth in
10-2 Sections 311.031 and 311.042, Health and Safety Code. A
10-3 determination of the amount of community benefits and charity care
10-4 and government-sponsored indigent health care provided by a
10-5 hospital or hospital system and the hospital's or hospital system's
10-6 compliance with the requirements of this subsection and Section
10-7 311.045, Health and Safety Code, shall be based on the most
10-8 recently completed and audited prior fiscal year of the hospital or
10-9 hospital system.]
10-10 [The providing of charity care and government-sponsored
10-11 indigent health care in accordance with Subdivision (1) shall be
10-12 guided by the prudent business judgment of the hospital which will
10-13 ultimately determine the appropriate level of charity care and
10-14 government-sponsored indigent health care based on the community
10-15 needs, the available resources of the hospital, the tax-exempt
10-16 benefits received by the hospital, and other factors that may be
10-17 unique to the hospital, such as the hospital's volume of Medicare
10-18 and Medicaid patients. These criteria shall not be determinative
10-19 factors, but shall be guidelines contributing to the hospital's
10-20 decision along with other factors which may be unique to the
10-21 hospital. The formulas contained in Subdivisions (2), (3), (4),
10-22 and (5) shall also not be considered determinative of a reasonable
10-23 amount of charity care and government-sponsored indigent health
10-24 care.]
10-25 [The requirements of this subsection shall not apply to the
11-1 extent a hospital or hospital system demonstrates that reductions
11-2 in the amount of community benefits, charity care, and
11-3 government-sponsored indigent health care are necessary to maintain
11-4 financial reserves at a level required by a bond covenant, are
11-5 necessary to prevent the hospital or hospital system from
11-6 endangering its ability to continue operations, or if the hospital
11-7 or hospital system, as a result of a natural or other disaster, is
11-8 required substantially to curtail its operations.]
11-9 [In any fiscal year that a hospital or hospital system,
11-10 through unintended miscalculation, fails to meet any of the
11-11 standards in this subsection, the hospital or hospital system shall
11-12 not lose its tax-exempt status without the opportunity to cure the
11-13 miscalculation in the fiscal year following the fiscal year the
11-14 failure is discovered by both meeting one of the standards and
11-15 providing an additional amount of charity care and
11-16 government-sponsored indigent health care that is equal to the
11-17 shortfall from the previous fiscal year. A hospital or hospital
11-18 system may apply this provision only once every five years.]
11-19 SECTION 13. Section 151.312, Tax Code, is amended to read as
11-20 follows:
11-21 Sec. 151.312. Periodicals and Writings of Religious,
11-22 Philanthropic, Charitable, Historical, Scientific, and Similar
11-23 Organizations. Periodicals and writings, including those presented
11-24 on audio tape, video tape, and computer disk, that are published
11-25 and [or] distributed by a religious, philanthropic, charitable,
12-1 historical, scientific, or other similar organization that is not
12-2 operated for profit, but excluding an educational organization, are
12-3 exempted from the taxes imposed by this chapter.
12-4 SECTION 14. Sections 151.318(a), (c), (g), (o), (q), and
12-5 (s), Tax Code, are amended to read as follows:
12-6 (a) The following items are exempted from the taxes imposed
12-7 by this chapter if sold, leased, or rented to, or stored, used, or
12-8 consumed by a manufacturer:
12-9 (1) tangible personal property that will become an
12-10 ingredient or component part of tangible personal property
12-11 manufactured, processed, or fabricated for ultimate sale;
12-12 (2) tangible personal property directly used or
12-13 consumed in or during the actual manufacturing, processing, or
12-14 fabrication of tangible personal property for ultimate sale if the
12-15 use or consumption of the property is necessary or essential to the
12-16 manufacturing, processing, or fabrication operation and directly
12-17 makes or causes a chemical or physical change to:
12-18 (A) the product being manufactured, processed,
12-19 or fabricated for ultimate sale; or
12-20 (B) any intermediate or preliminary product that
12-21 will become an ingredient or component part of the product being
12-22 manufactured, processed, or fabricated for ultimate sale;
12-23 (3) services performed directly on the product being
12-24 manufactured prior to its distribution for sale and for the purpose
12-25 of making the product more marketable;
13-1 (4) actuators, steam production equipment and its
13-2 fuel, in-process flow through tanks, cooling towers, generators,
13-3 heat exchangers, electronic control room equipment, computerized
13-4 control units, pumps, compressors, and hydraulic units, that are
13-5 used to power, supply, support, or control equipment that qualifies
13-6 for exemption under Subdivision (2) or (5) or to generate
13-7 electricity, chilled water, or steam for ultimate sale; and
13-8 transformers located at an electric generating facility that
13-9 increase the voltage of electricity generated for ultimate sale;
13-10 the switches, breakers, capacitor banks, regulators, and relays
13-11 that are related to such transformers; and the electrical cable
13-12 that carries the electricity from the electric generating equipment
13-13 to such transformers;
13-14 (5) [machinery, equipment, and replacement parts or
13-15 accessories] tangible personal property used or consumed in the
13-16 actual manufacturing, processing, or fabrication of tangible
13-17 personal property for ultimate sale if [their] the use or
13-18 consumption of the property is necessary and essential to a
13-19 pollution control process;
13-20 (6) lubricants, chemicals, chemical compounds, gases,
13-21 or liquids that are used or consumed during the actual
13-22 manufacturing, processing, or fabrication of tangible personal
13-23 property for ultimate sale if their use or consumption is necessary
13-24 and essential to prevent the decline, failure, lapse, or
13-25 deterioration of equipment exempted by this section;
14-1 (7) gases used on the premises of a manufacturing
14-2 plant to prevent contamination of raw material or product, or to
14-3 prevent a fire, explosion, or other hazardous or environmentally
14-4 damaging situation at any stage in the manufacturing process or in
14-5 loading or storage of the product or raw material on premises;
14-6 (8) tangible personal property used or consumed during
14-7 the actual manufacturing, processing, or fabrication of tangible
14-8 personal property for ultimate sale if the use or consumption of
14-9 the property is necessary and essential to a quality control
14-10 process;
14-11 (9) safety apparel or work clothing that is used
14-12 during the actual manufacturing, processing, or fabrication of
14-13 tangible personal property for ultimate sale if the use of the
14-14 apparel or clothing is necessary and essential to the manufacturing
14-15 process and the apparel or clothing is not resold to the employee.
14-16 Such apparel or clothing is necessary and essential only if the
14-17 manufacturing process would not be possible without its use;
14-18 (10) tangible personal property used or consumed in
14-19 the actual manufacturing, processing, or fabrication of tangible
14-20 personal property for ultimate sale if the use or consumption of
14-21 the property is necessary and essential to comply with federal,
14-22 state, or local law or rules for public health; and
14-23 (11) tangible personal property specifically installed
14-24 to:
14-25 (A) reduce water use and wastewater flow volumes
15-1 from the manufacturing, processing, fabrication, or repair
15-2 operation;
15-3 (B) reuse and recycle wastewater streams
15-4 generated within the manufacturing, processing, fabrication, or
15-5 repair operation; or
15-6 (C) treat wastewater from another industrial or
15-7 municipal source for the purpose of replacing existing freshwater
15-8 sources in the manufacturing, processing, fabrication, or repair
15-9 operation.
15-10 (c) The exemption does not include:
15-11 (1) intraplant transportation equipment, including
15-12 intraplant transportation equipment used to move a product or raw
15-13 material in connection with the manufacturing process and
15-14 specifically including all piping and conveyor systems, provided
15-15 that the following remain eligible for the exemption:
15-16 (A) piping or conveyor systems that are [is] a
15-17 component part of a single item of manufacturing equipment or
15-18 pollution control equipment eligible for the exemption under
15-19 Subsection (a)(2), (a)(4), or (a)(5);
15-20 (B) piping through which the product or an
15-21 intermediate or preliminary product that will become an ingredient
15-22 or component part of the product is recycled or circulated in a
15-23 loop between the single item of manufacturing equipment and the
15-24 ancillary equipment that supports only that single item of
15-25 manufacturing equipment if the single item of manufacturing
16-1 equipment and the ancillary equipment operate together to perform a
16-2 specific step in the manufacturing process; and
16-3 (C) piping through which the product or an
16-4 intermediate or preliminary product that will become an ingredient
16-5 or component part of the product is recycled back to another single
16-6 item of manufacturing equipment and its ancillary equipment in the
16-7 same manufacturing process. [remains eligible for the exemption]
16-8 Piping through which material is transported forward from one
16-9 single item of manufacturing equipment and its ancillary support
16-10 equipment to another single item of manufacturing equipment and its
16-11 ancillary support equipment is not considered a component part of a
16-12 single item of manufacturing equipment and is not exempt. An
16-13 integrated group of manufacturing and processing machines and
16-14 ancillary equipment that operate together to create or produce the
16-15 product or an intermediate or preliminary product that will become
16-16 an ingredient or component part of the product is not a single item
16-17 of manufacturing equipment;
16-18 (2) [maintenance or janitorial supplies or equipment
16-19 or other machinery, equipment, materials, or supplies that are used
16-20 incidentally in a manufacturing, processing, or fabrication
16-21 operation;]
16-22 [(3)] hand tools;
16-23 [(4)] (3) maintenance supplies not otherwise exempted
16-24 under this section, maintenance equipment, janitorial supplies or
16-25 equipment, office equipment or supplies, or equipment or supplies
17-1 used in sales or distribution activities, research or development
17-2 of new products, or transportation activities[, or other tangible
17-3 personal property not used in an actual manufacturing, processing,
17-4 or fabrication operation]; or
17-5 [(5)] (4) machinery and equipment or supplies used to
17-6 [maintain] preserve or store tangible personal property.
17-7 [(g) Each person engaged in manufacturing, processing,
17-8 fabricating, or repairing tangible personal property for ultimate
17-9 sale is entitled to a refund or a reduction in the amount of tax
17-10 imposed by this chapter as provided by Subsection (h) for the
17-11 purchase of machinery, equipment, and replacement parts or
17-12 accessories with a useful life in excess of six months if the
17-13 equipment is:]
17-14 [(1) used or consumed in or during the actual
17-15 manufacturing, processing, fabrication, or repair of tangible
17-16 personal property for ultimate sale, and the use or consumption of
17-17 the property is necessary or essential to the manufacturing,
17-18 processing, fabrication, or repair operation, or to a pollution
17-19 control process; or]
17-20 [(2) specifically installed to:]
17-21 [(A) reduce water use and wastewater flow
17-22 volumes from the manufacturing, processing, fabrication, or repair
17-23 operation;]
17-24 [(B) reuse and recycle wastewater streams
17-25 generated within the manufacturing, processing, fabrication, or
18-1 repair operation; or]
18-2 [(C) treat wastewater from another industrial or
18-3 municipal source for the purpose of replacing existing freshwater
18-4 sources in the manufacturing, processing, fabrication, or repair
18-5 operation.]
18-6 (o) The production of a publication for the dissemination of
18-7 news of a general character and of a general interest that is
18-8 printed on newsprint and distributed to the general public free of
18-9 charge at a daily, weekly, or other short interval is considered
18-10 "manufacturing" for purposes of [Subsections (d)-(m) of] this
18-11 section.
18-12 (q) For purposes of Subsection (b), "semiconductor
18-13 fabrication cleanrooms and equipment" means all tangible personal
18-14 property, without regard to whether the property is affixed to or
18-15 incorporated into realty, used in connection with the
18-16 manufacturing, processing, or fabrication in a cleanroom
18-17 environment of a semiconductor product, without regard to whether
18-18 the property is actually contained in the cleanroom environment.
18-19 The term includes integrated systems, fixtures, and piping, all
18-20 property necessary or adapted to reduce contamination or to control
18-21 airflow, temperature, humidity, chemical purity, or other
18-22 environmental conditions or manufacturing tolerances, and
18-23 production equipment and machinery. The term does not include the
18-24 building or a permanent, nonremovable component of the building,
18-25 that houses the cleanroom environment. The term includes moveable
19-1 cleanroom partitions and cleanroom lighting. "Semiconductor
19-2 fabrication cleanrooms and equipment" are not "interplant
19-3 transportation equipment" [or "used incidentally in a
19-4 manufacturing, processing, or fabrication operation"] as [those
19-5 terms are] that term is used in [Subsections] Subsection (c)(1)
19-6 [and (c)(2)].
19-7 (s) The following do not apply to the semiconductor
19-8 fabrication cleanrooms and equipment in Subsection (q):
19-9 (1) limitations in Subsection (a)(2) that refer to
19-10 tangible personal property directly causing chemical and physical
19-11 changes to the product being manufactured, processed, or fabricated
19-12 for ultimate sale;
19-13 (2) Subsection (c)(1); and
19-14 (3) Subsection (c)[(5)](4).
19-15 SECTION 15. Section 151.321(a), Tax Code, is amended to read
19-16 as follows:
19-17 (a) A taxable item sold by a qualified student organization
19-18 and for which the sales price is $5,000 or less, is exempted from
19-19 the taxes imposed by Subchapter C, except that a taxable item
19-20 manufactured by or donated to the organization is exempt from the
19-21 taxes imposed by subchapter C regardless of sales price unless sold
19-22 to the donor, if the student organization:
19-23 (1) sells the item at a sale that may last for one day
19-24 only and the primary purpose of which is to raise funds for the
19-25 organization; and
20-1 (2) holds not more than one sale described by
20-2 Subdivision (1) each month for which an exemption is claimed for an
20-3 item sold.
20-4 SECTION 16. Section 151.350(d), Tax Code, is amended to read
20-5 as follows:
20-6 (d) In this section, "restore" means:
20-7 (1) launder, [or] clean, repair, treat, or apply
20-8 protective chemicals to an item, to the extent the service is a
20-9 personal service as defined in Section 151.0045; and
20-10 (2) repair, restore, or remodel, to the extent the
20-11 service is:
20-12 (A) a real property repair or remodeling service
20-13 as defined in Section 151.0047; or
20-14 (B) defined as a taxable service in Section
20-15 151.0101(a)(5) [151.0101(5)].
20-16 SECTION 17. Sections 151.429(d) and (g), Tax Code, are
20-17 amended to read as follows:
20-18 (d) To receive a refund under this section, an enterprise
20-19 project must apply to the comptroller for the refund. The Texas
20-20 Department of Economic Development [department of commerce] shall
20-21 provide the comptroller with the assistance that the comptroller
20-22 requires in administering this section.
20-23 (g) The refund provided by this section is conditioned on
20-24 the enterprise project maintaining at least the same level of
20-25 employment of qualified employees as existed at the time it
21-1 qualified for a refund for a period of three years from that date.
21-2 The Texas Department of Economic Development [Commerce] shall
21-3 annually certify to the comptroller and the Legislative Budget
21-4 Board whether that level of employment of qualified employees has
21-5 been maintained. On the Texas Department of Economic Development
21-6 [Commerce] certifying that such a level has not been maintained,
21-7 the comptroller shall assess that portion of the refund
21-8 attributable to any such decrease in employment, including penalty
21-9 and interest from the date of the refund.
21-10 SECTION 18. Section 151.429(e)(1), Tax Code, is amended to
21-11 read as follow:
21-12 (1) "Enterprise project" means a person designated by
21-13 the Texas Department of Economic Development [Commerce] as an
21-14 enterprise project under Chapter 2303, Government Code.
21-15 SECTION 19. Sections 151.4291(d) and (g), Tax Code, are
21-16 amended to read as follows:
21-17 (d) To receive a refund under this section, a defense
21-18 readjustment project must apply to the comptroller for the refund.
21-19 The Texas Department of Economic Development [Commerce] shall
21-20 provide the comptroller with the assistance that the comptroller
21-21 requires in administering this section.
21-22 (g) The refund provided by this section is conditioned on
21-23 the defense readjustment project maintaining at least the same
21-24 level of employment of qualified employees as existed at the time
21-25 it qualified for a refund for a period of three years from that
22-1 date. The Texas Department of Economic Development [Commerce]
22-2 shall annually certify to the comptroller and the Legislative
22-3 Budget Board whether that level of employment of qualified
22-4 employees has been maintained. On the Texas Department of Economic
22-5 Development [Commerce] certifying that such a level has not been
22-6 maintained, the comptroller shall assess that portion of the refund
22-7 attributable to any such decrease in employment, including penalty
22-8 and interest from the date of the refund.
22-9 SECTION 20. Section 151.4291(e)(1), Tax Code, is amended to
22-10 read as follows:
22-11 (1) "Defense readjustment project" means a person
22-12 designated by the Texas Department of Economic Development
22-13 [Commerce] as a defense readjustment project under Chapter 2310,
22-14 Government Code.
22-15 SECTION 21. Section 151.431(a), Tax Code, is amended to read
22-16 as follows:
22-17 (a) A qualified business operating in the enterprise zone's
22-18 jurisdiction for at least three consecutive years may apply for and
22-19 be granted a onetime refund of sales and use tax paid by the
22-20 qualified business after certification of the qualified business as
22-21 provided by Subsection (b) of this section to a vendor or directly
22-22 to the state for the purchase of equipment or machinery sold to the
22-23 business for use in an enterprise zone if the governing body or
22-24 bodies certify to the Texas Department of Economic Development
22-25 [Commerce] that the business is retaining 10 or more jobs held by
23-1 qualified employees during the year. For the purposes of this
23-2 subsection "job" means an existing employment position of a
23-3 qualified business that has provided employment to a qualified
23-4 employee of at least 1,820 hours annually.
23-5 SECTION 22. Section 152.041, Tax Code, is amended by adding
23-6 Subsection (e) to read as follows:
23-7 (e) If a motor vehicle title applicant has paid the tax to
23-8 the seller who is required by this chapter to collect the tax and
23-9 the seller has failed to remit the tax to the county tax
23-10 assessor-collector, the tax assessor-collector may accept
23-11 application for title to the motor vehicle without the payment of
23-12 additional tax by the applicant. Before title to the motor vehicle
23-13 may be issued under these circumstances, the motor vehicle title
23-14 applicant must present satisfactory documentation to the tax
23-15 assessor-collector that the tax was paid. The county tax
23-16 assessor-collector shall notify the comptroller in writing of the
23-17 seller's failure to remit the tax. The notice must:
23-18 (1) be made before the 31st day after the date the
23-19 application for title is accepted;
23-20 (2) contain the name and address of the seller; and
23-21 (3) include any documentation of the payment of the
23-22 tax provided to the county tax assessor-collector by the motor
23-23 vehicle title applicant.
23-24 SECTION 23. Sections 153.117(a), (b), (d), and (h), Tax
23-25 Code, are amended to read as follows:
24-1 (a) A distributor shall keep a record showing the number of
24-2 gallons of:
24-3 (1) all gasoline inventories on hand at the first of
24-4 each month;
24-5 (2) all gasoline refined, compounded, or blended;
24-6 (3) all gasoline purchased or received, showing the
24-7 name of the seller and date of each purchase or receipt;
24-8 (4) all gasoline sold, distributed, or used, showing
24-9 the name of the purchaser and the date of the sale or use; and
24-10 (5) all gasoline lost by fire, theft, or other
24-11 accident.
24-12 (b) A dealer shall keep a record showing the number of
24-13 gallons of:
24-14 (1) gasoline inventories on hand at the first of each
24-15 month;
24-16 (2) all gasoline purchased or received, showing the
24-17 name of the seller and the date of each purchase or receipt;
24-18 (3) all gasoline sold or used, showing the date of the
24-19 sale or use; and
24-20 (4) all gasoline lost by fire, theft, or other
24-21 accident.
24-22 (d) An aviation fuel dealer shall keep a record showing the
24-23 number of gallons of:
24-24 (1) all gasoline inventories on hand at the first of
24-25 each month;
25-1 (2) all gasoline purchased or received, showing the
25-2 name of the seller and date of each purchase or receipt;
25-3 (3) all gasoline sold or used in aircraft or aircraft
25-4 servicing equipment; and
25-5 (4) all gasoline lost by fire, theft, or other
25-6 accident.
25-7 (h) A gasoline jobber shall keep a record showing the number
25-8 of gallons of:
25-9 (1) all gasoline inventories on hand at the first of
25-10 each month;
25-11 (2) all gasoline purchased or received, showing the
25-12 name of the seller and date of each purchase or receipt;
25-13 (3) all gasoline sold, distributed, or used, showing
25-14 the name of the purchaser and the date of the sale or use; and
25-15 (4) all gasoline lost by fire, theft, or other
25-16 accident.
25-17 SECTION 24. Sections 153.119(a) and (e), Tax Code, are
25-18 amended to read as follows:
25-19 (a) A person who exports, sells to the federal government,
25-20 to a public school district in this state, or to a commercial
25-21 transportation company for exclusive use in providing public school
25-22 transportation services to a school district under Section 34.008,
25-23 Education Code, without having added the amount of the tax imposed
25-24 by this chapter to his selling price, loses by fire, theft, or
25-25 other accident, or uses gasoline for the purpose of operating or
26-1 propelling a motorboat, tractor used for agricultural purposes, or
26-2 stationary engine, or for another purpose except in a vehicle
26-3 operated or intended to be operated on the public highways of this
26-4 state, and who has paid the tax imposed on gasoline by this chapter
26-5 either directly or indirectly is, when the person has complied with
26-6 the invoice and filing provisions of this section and the rules of
26-7 the comptroller, entitled to reimbursement of the tax paid by him,
26-8 less a filing fee and any amount allowed distributors[, wholesalers
26-9 or jobbers, dealers, or others] under Section 153.105(e)[(c)] of
26-10 this code. A public school district that has paid the tax imposed
26-11 under this chapter on gasoline used by the district or a commercial
26-12 transportation company that has paid the tax imposed under this
26-13 chapter on gasoline used by the company exclusively to provide
26-14 public school transportation services to a school district under
26-15 Section 34.008, Education Code, is entitled to reimbursement of the
26-16 amount of the tax paid in the same manner and subject to the same
26-17 procedures as other exempted users.
26-18 (e) A person who exports or loses by fire, theft, or other
26-19 accident 100 or more gallons of gasoline on which the tax has been
26-20 paid, or sells gasoline in any quantity to the United States
26-21 government for the exclusive use of that government on which the
26-22 tax has been paid, may file a claim for a refund of the net tax
26-23 paid to the state in the manner provided by this chapter or as the
26-24 comptroller may direct.
26-25 SECTION 25. Section 153.121(a), Tax Code, is amended to read
27-1 as follows:
27-2 (a) Except as provided by this section, a claim for a refund
27-3 must be filed with the comptroller within one year after the first
27-4 day of the calendar month following the purchase, use, delivery,
27-5 export, or loss by fire, theft, or other accident of gasoline,
27-6 whichever period expires latest.
27-7 SECTION 26. Section 153.206, Tax Code, is amended by adding
27-8 Subsection (j) to read as follows:
27-9 (j) In each subsequent sale of diesel fuel on which the tax
27-10 has been collected, the amount of the tax shall be added to the
27-11 selling price so that the tax is paid ultimately by the person
27-12 using or consuming the diesel fuel for the purpose of propelling a
27-13 vehicle on the public highways of this state.
27-14 SECTION 27. Sections 153.219(a), (b), (c), (d), and (i), Tax
27-15 Code, are amended to read as follows:
27-16 (a) A supplier shall keep a record showing the number of
27-17 gallons of:
27-18 (1) all diesel fuel inventories on hand at the first
27-19 of each month;
27-20 (2) all diesel fuel refined, compounded, or blended;
27-21 (3) all diesel fuel purchased or received, showing the
27-22 name of the seller, and the date of each purchase or receipt;
27-23 (4) all diesel fuel sold, distributed, or used showing
27-24 the name of the purchaser and the date of sale, distribution, or
27-25 use; and
28-1 (5) all diesel fuel lost by fire, theft, or other
28-2 accident.
28-3 (b) A dealer shall keep a record showing the number of
28-4 gallons of:
28-5 (1) all diesel fuel inventories on hand at the first
28-6 of each month;
28-7 (2) all diesel fuel purchased or received, showing the
28-8 name of the seller, the date of each purchase or receipt;
28-9 (3) all diesel fuel sold, distributed, or used; and
28-10 (4) all diesel fuel lost by fire, theft, or other
28-11 accident.
28-12 (c) A bonded user or other user with nonhighway equipment
28-13 uses who files a claim for a refund shall keep a record showing the
28-14 number of gallons of:
28-15 (1) inventories of all diesel fuel on hand at the
28-16 first of each month;
28-17 (2) all diesel fuel purchased or received, showing the
28-18 name of the seller and the date of each purchase;
28-19 (3) all diesel fuel deliveries into the fuel supply
28-20 tanks of motor vehicles;
28-21 (4) diesel fuel used for other purposes, showing the
28-22 purpose for which used; and
28-23 (5) all diesel fuel lost by fire, theft, or other
28-24 accident.
28-25 (d) An aviation fuel dealer shall keep a record showing the
29-1 number of gallons of:
29-2 (1) all diesel fuel inventories on hand at the first
29-3 of each month;
29-4 (2) all diesel fuel purchased or received, showing the
29-5 name of the seller and the date of each purchase or receipt;
29-6 (3) all diesel fuel sold, distributed, or used in
29-7 aircraft or aircraft servicing equipment; and
29-8 (4) diesel fuel lost by fire, theft, or other
29-9 accident.
29-10 (i) A diesel fuel jobber shall keep a record showing the
29-11 number of gallons of:
29-12 (1) all diesel fuel inventories on hand at the first
29-13 of each month;
29-14 (2) all diesel fuel purchased or received, showing the
29-15 name of the seller and date of each purchase or receipt;
29-16 (3) all diesel fuel sold, distributed, or used,
29-17 showing the name of the purchaser and the date of the sale or use;
29-18 and
29-19 (4) all diesel fuel lost by fire, theft, or other
29-20 accident.
29-21 SECTION 28. Section 153.222(e), Tax Code, is amended to read
29-22 as follows:
29-23 (e) A person who exports or loses by fire, theft, or other
29-24 accident 100 or more gallons of diesel fuel on which the tax has
29-25 been paid, or who sells diesel fuel in any quantity to the United
30-1 States for its exclusive use on which the tax has been paid, may
30-2 file a claim for a refund of the net tax paid to the state as the
30-3 comptroller may direct.
30-4 SECTION 29. Section 153.224(a), Tax Code, is amended to read
30-5 as follows:
30-6 (a) Except as provided by this section, a claim for a refund
30-7 must be filed with the comptroller within one year after the first
30-8 day of the calendar month following the purchase, use, delivery,
30-9 export, or loss by fire, theft, or other accident of diesel fuel,
30-10 whichever period expires latest.
30-11 SECTION 30. Sections 154.114(c) and (g), Tax Code, are
30-12 amended to read as follows:
30-13 (c) The comptroller shall deliver [mail] the written notice
30-14 by personal service or by [certified] mail[, return receipt
30-15 requested,] to the permit holder's mailing address as it appears on
30-16 the comptroller's records. Service by mail is complete when the
30-17 notice is deposited with [received, as evidenced by return receipt
30-18 from] the U.S. Postal Service.
30-19 (g) If the comptroller suspends or revokes a permit, the
30-20 comptroller shall provide written notice of the suspension or
30-21 revocation, within a reasonable time, to each distributor and
30-22 wholesaler permit holder in the state. A distributor or wholesaler
30-23 permit holder violates Section 154.1015(a) by selling or
30-24 distributing cigarettes to a person whose permit has been suspended
30-25 or revoked only after the distributor or wholesaler permit holder
31-1 receives written notice of the suspension or revocation from the
31-2 comptroller.
31-3 SECTION 31. Section 154.210(a), Tax Code, is amended to read
31-4 as follows:
31-5 (a) A distributor shall deliver to the comptroller, on or
31-6 before the last [15th] day of each month, a report for the
31-7 preceding month.
31-8 SECTION 32. Section 154.308(b), Tax Code, is amended to read
31-9 as follows:
31-10 (b) On making a deficiency determination, the comptroller
31-11 shall notify the person by [certified] mail or personal service[,
31-12 return receipt requested]. Service by mail is complete when the
31-13 notice is deposited with [received, as evidenced by return receipt
31-14 from] the U.S. Postal Service.
31-15 SECTION 33. Sections 154.309(b) and (d), Tax Code, are
31-16 amended to read as follows:
31-17 (b) A written request for redetermination must be filed at
31-18 the office of the comptroller not later than the 30th [15th
31-19 working] day after the date notice of deficiency is issued
31-20 [received]. If a written request for redetermination is not filed
31-21 as required by this subsection, the determination is final.
31-22 (d) The comptroller shall give notice of a redetermination
31-23 hearing by personal service or by [certified] mail[, return receipt
31-24 requested]. Service by mail is complete when the notice is
31-25 deposited with [received, as evidenced by return receipt from] the
32-1 U.S. Postal Service.
32-2 SECTION 34. Section 155.059(c), Tax Code, is amended to read
32-3 as follows:
32-4 (c) The comptroller shall deliver [mail] the written notice
32-5 by personal service or by [certified] mail[, return receipt
32-6 requested,] to the permit holder's mailing address as it appears in
32-7 the comptroller's records. Service by mail is complete when the
32-8 notice is deposited with [received, as evidenced by the return
32-9 receipt from] the United States Postal Service.
32-10 SECTION 35. Section 155.103(b), Tax Code, is amended to read
32-11 as follows:
32-12 (b) A manufacturer who sells tobacco products to a permit
32-13 holder in this state shall file with the comptroller, on or before
32-14 the last [15th] day of each month, a report showing the information
32-15 listed in Subsection (a) for the previous month.
32-16 SECTION 36. Section 155.111(a), Tax Code, is amended to read
32-17 as follows:
32-18 (a) A distributor shall file with the comptroller on or
32-19 before the last [30th] day of each month, a report for the
32-20 preceding month.
32-21 SECTION 37. Section 155.185(b), Tax Code, is amended to read
32-22 as follows:
32-23 (b) On making a deficiency determination, the comptroller
32-24 shall notify the person by personal service or by [certified]
32-25 mail[, return receipt requested]. Service by mail is complete when
33-1 the notice is deposited with [received, as evidenced by return
33-2 receipt from] the U.S. Postal Service.
33-3 SECTION 38. Sections 155.186(b) and (d), Tax Code, are
33-4 amended to read as follows:
33-5 (b) A written request for redetermination must be filed at
33-6 the office of the comptroller not later than the 30th [15th
33-7 working] day after the date notice of deficiency is issued
33-8 [received]. If a written request for redetermination is not filed
33-9 as required by this subsection, the determination is final.
33-10 (d) The comptroller shall give notice of a redetermination
33-11 hearing by personal service or by [certified] mail[, return receipt
33-12 requested]. Service by mail is complete when the notice is
33-13 deposited with [received, as evidenced by return receipt from] the
33-14 U.S. Postal Service.
33-15 SECTION 39. Section 156.102, Tax Code, is amended to read as
33-16 follows:
33-17 Sec. 156.102. Exception--Religious, Charitable, or
33-18 Educational Organization. This chapter does not impose a tax on a
33-19 corporation or association that:
33-20 (1) is organized and operated exclusively for a
33-21 religious, charitable, or educational purpose if no part of the net
33-22 earnings of the corporation or association inure to the benefit of
33-23 a private shareholder or individual; or
33-24 (2) qualifies for exemption from federal income taxes
33-25 under Section 501(c)(3), Internal Revenue Code of 1986.
34-1 SECTION 40. Sections 156.103(a), (b), (c), and (d), Tax
34-2 Code, are amended to read as follows:
34-3 (a) This [Subject to this section, this] chapter does not
34-4 impose a tax on:
34-5 (1) the United States;
34-6 (2) a governmental entity of the United States[, this
34-7 state, or an agency, institution, board, or commission of this
34-8 state other than an institution of higher education;]
34-9 [(2) an officer or employee of a state governmental
34-10 entity described by Subdivision (1) when traveling on or otherwise
34-11 engaged in the course of official duties for the governmental
34-12 entity]; or
34-13 (3) an officer or employee of a governmental entity of
34-14 the United States when traveling on or otherwise engaged in the
34-15 course of official duties for the governmental entity [if the
34-16 governmental entity directly pays to the hotel the price for the
34-17 room].
34-18 (b) This state, or an agency, institution, board, or
34-19 commission of this state other than an institution of higher
34-20 education [A governmental entity otherwise excepted under this
34-21 section] shall pay the tax imposed by this chapter and is entitled
34-22 to a refund of the amount of tax paid in accordance with Section
34-23 156.154.
34-24 (c) A state officer or employee of a state governmental
34-25 entity described by Subsection (b) [(a)(2)] who is entitled to
35-1 reimbursement for the cost of lodging and for whom a special
35-2 provision or exception to the general rate of reimbursement under
35-3 the General Appropriations Act is not applicable shall pay the tax
35-4 imposed by [under] this chapter [as if it were imposed by this
35-5 chapter]. The state governmental entity with whom the person is
35-6 associated is entitled under Section 156.154 to a refund of the tax
35-7 paid.
35-8 (d) A state officer or employee of a state governmental
35-9 entity described by Subsection (b) [(a)(2)] for whom a special
35-10 provision or exception to the general rate of reimbursement under
35-11 the General Appropriations Act applies and who is provided with
35-12 photo identification verifying the identity and exempt status of
35-13 the person is not required to pay the tax and is not entitled to a
35-14 refund. The photo identification of a state officer or employee
35-15 described by this section may be modified for the purposes of this
35-16 section.
35-17 SECTION 41. Section 171.063, Tax Code, is amended by
35-18 amending Subsection (a) and by adding Subsection (h) to read as
35-19 follows:
35-20 (a) The following corporations are exempt from the franchise
35-21 tax:
35-22 (1) a nonprofit corporation exempted from the federal
35-23 income tax under Section 501(c)(3), (4), (5), (6), (7), (8), (10),
35-24 or (19), Internal Revenue Code which in the case of a nonprofit
35-25 hospital means a hospital providing community benefits that include
36-1 charity care and government-sponsored indigent health care
36-2 [community benefits] as set forth in Subchapter D, Chapter 311,
36-3 Health and Safety Code; [Paragraph (A), (B), (C), (D), (E), (F), or
36-4 (G):]
36-5 [(A) charity care and government-sponsored
36-6 indigent health care are provided at a level which is reasonable in
36-7 relation to the community needs, as determined through the
36-8 community needs assessment, the available resources of the hospital
36-9 or hospital system, and the tax-exempt benefits received by the
36-10 hospital or hospital system;]
36-11 [(B) charity care and government-sponsored
36-12 indigent health care are provided in an amount equal to at least
36-13 four percent of the hospital's or hospital system's net patient
36-14 revenue;]
36-15 [(C) charity care and government-sponsored
36-16 indigent health care are provided in an amount equal to at least
36-17 100 percent of the hospital's or hospital system's tax-exempt
36-18 benefits, excluding federal income tax;]
36-19 [(D) for tax periods beginning before January 1,
36-20 1996, charity care and community benefits are provided in a
36-21 combined amount equal to at least five percent of the hospital's
36-22 net patient revenue, provided that charity care and
36-23 government-sponsored indigent health care are provided in an amount
36-24 equal to at least three percent of net patient revenue;]
36-25 [(E) for tax periods beginning after December
37-1 31, 1995, charity care and community benefits are provided in a
37-2 combined amount equal to at least five percent of the hospital's or
37-3 hospital system's net patient revenue, provided that charity care
37-4 and government-sponsored indigent health care are provided in an
37-5 amount equal to at least four percent of net patient revenue;]
37-6 [(F) a nonprofit hospital that has been
37-7 designated as a disproportionate share hospital under the state
37-8 Medicaid program in the current year or in either of the previous
37-9 two fiscal years is considered to have provided a reasonable amount
37-10 of charity care and government-sponsored indigent health care and
37-11 is considered in compliance with the standards provided by this
37-12 subsection; or]
37-13 [(G) a hospital operated on a nonprofit basis
37-14 that is located in a county with a population of less than 50,000
37-15 and in which the entire county or the population of the entire
37-16 county has been designated as a health professionals shortage area
37-17 is considered in compliance with the standards provided by this
37-18 subsection;]
37-19 (2) a corporation exempted under Section 501(c)(2) or
37-20 (25), Internal Revenue Code, if the corporation or corporations for
37-21 which it holds title to property is either exempt from or not
37-22 subject to the franchise tax; and
37-23 (3) a corporation exempted from federal income tax
37-24 under Section 501(c)(16), Internal Revenue Code. [; and]
37-25 [(4) a nonprofit corporation exempted from the federal
38-1 income tax under Section 501(c)(3), Internal Revenue Code, that
38-2 does not receive any payment for providing health care services to
38-3 inpatients or outpatients from any source including but not limited
38-4 to the patient or person legally obligated to support the patient,
38-5 third-party payors, Medicare, Medicaid, or any other state or local
38-6 indigent care program. Payment for providing health care services
38-7 does not include charitable donations, legacies, bequests, or
38-8 grants or payments for research.]
38-9 [For purposes of satisfying Paragraph (E) of Subdivision (1),
38-10 a hospital or hospital system may not change its existing fiscal
38-11 year unless the hospital or hospital system changes its ownership
38-12 or corporate structure as a result of a sale or merger.]
38-13 [For purposes of this subsection, a hospital that satisfies
38-14 Paragraph (A), (F), or (G) of Subdivision (1) shall be excluded in
38-15 determining a hospital system's compliance with the standards
38-16 provided by Paragraph (B), (C), (D), or (E) of Subdivision (1).]
38-17 [For purposes of this subsection, the terms "charity care,"
38-18 "government-sponsored indigent health care," "health care
38-19 organization," "hospital system," "net patient revenue," "nonprofit
38-20 hospital," and "tax-exempt benefits" have the meanings set forth in
38-21 Sections 311.031 and 311.042, Health and Safety Code. A
38-22 determination of the amount of community benefits and charity care
38-23 and government-sponsored indigent health care provided by a
38-24 hospital or hospital system and the hospital's or hospital system's
38-25 compliance with the requirements of Section 311.045, Health and
39-1 Safety Code, shall be based on the most recently completed and
39-2 audited prior fiscal year of the hospital or hospital system.]
39-3 [A requirement that a nonprofit hospital provide charity care
39-4 and community benefits under this subsection may be satisfied by a
39-5 donation of money to the Texas Healthy Kids Corporation established
39-6 by Chapter 109, Health and Safety Code, provided that:]
39-7 [(1) the money is donated to be used for a purpose
39-8 described by Section 109.033(c), Health and Safety Code; and]
39-9 [(2) not more than 10 percent of the charity care
39-10 required under any provision of this subsection may be satisfied by
39-11 the donation.]
39-12 [The providing of charity care and government-sponsored
39-13 indigent health care in accordance with Paragraph (A) of
39-14 Subdivision (1) shall be guided by the prudent business judgment of
39-15 the hospital which will ultimately determine the appropriate level
39-16 of charity care and government-sponsored indigent health care based
39-17 on the community needs, the available resources of the hospital,
39-18 the tax-exempt benefits received by the hospital, and other factors
39-19 that may be unique to the hospital, such as the hospital's volume
39-20 of Medicare and Medicaid patients. These criteria shall not be
39-21 determinative factors, but shall be guidelines contributing to the
39-22 hospital's decision along with other factors which may be unique to
39-23 the hospital. The formulas contained in Paragraphs (B), (C), (D),
39-24 and (E) of Subdivision (1) shall also not be considered
39-25 determinative of a reasonable amount of charity care and
40-1 government-sponsored indigent health care.]
40-2 [The requirements of this subsection shall not apply to the
40-3 extent a hospital or hospital system demonstrates that reductions
40-4 in the amount of community benefits, charity care, and
40-5 government-sponsored indigent health care are necessary to maintain
40-6 financial reserves at a level required by a bond covenant, are
40-7 necessary to prevent the hospital or hospital system from
40-8 endangering its ability to continue operations, or if the hospital,
40-9 as a result of a natural or other disaster, is required
40-10 substantially to curtail its operations.]
40-11 [In any fiscal year that a hospital or hospital system,
40-12 through unintended miscalculation, fails to meet any of the
40-13 standards in Subdivision (1), the hospital or hospital system shall
40-14 not lose its tax-exempt status without the opportunity to cure the
40-15 miscalculation in the fiscal year following the fiscal year the
40-16 failure is discovered by both meeting one of the standards and
40-17 providing an additional amount of charity care and
40-18 government-sponsored indigent health care that is equal to the
40-19 shortfall from the previous fiscal year. A hospital or hospital
40-20 system may apply this provision only once every five years.]
40-21 (h) A requirement that a nonprofit hospital provide charity
40-22 care and community benefits under Subsection (a)(1) may be
40-23 satisfied by a donation of money to the Texas Healthy Kids
40-24 Corporation established by Chapter 109, Health and Safety Code, if:
40-25 (1) the money is donated to be used for a purpose
41-1 described by Section 109.033(c), Health and Safety Code; and
41-2 (2) not more than 10 percent of the charity care
41-3 required under any provision of Section 311.045, Health and Safety
41-4 Code, may be satisfied by the donation.
41-5 SECTION 42. Sections 171.063(c) and (d), Tax Code, are
41-6 amended to read as follows:
41-7 (c) A corporation's exemption under Subsection (b) of this
41-8 section is established by furnishing the comptroller with a copy of
41-9 the Internal Revenue Service's letter of exemption issued to the
41-10 corporation. [The copy of the letter must be filed with the
41-11 comptroller within 15 months after the day that is the last day of
41-12 a calendar month and that is nearest to the date of the
41-13 corporation's charter or certificate of authority.]
41-14 (d) If the Internal Revenue Service has not timely issued to
41-15 a corporation a letter of exemption, evidence establishing the
41-16 corporation's provisional exemption under this section is
41-17 sufficient if the corporation timely files with the comptroller
41-18 [within the 15-month period established by Subsection (c) of this
41-19 section] evidence that the corporation has applied in good faith
41-20 for the federal tax exemption. The evidence must be filed not later
41-21 than the 15th month after the day that is the last day of a
41-22 calendar month and that is nearest to the date of the corporation's
41-23 charter or certificate of authority.
41-24 SECTION 43. The heading of Subchapter C, Chapter 171, Tax
41-25 Code, is amended to read as follows:
42-1 SUBCHAPTER C. DETERMINATION OF TAXABLE CAPITAL AND TAXABLE EARNED
42-2 SURPLUS; ALLOCATION AND APPORTIONMENT
42-3 SECTION 44. The heading of Section 171.1015, Tax Code, is
42-4 amended to read as follows:
42-5 Sec. 171.1015. REDUCTION OF TAXABLE CAPITAL OR TAXABLE
42-6 EARNED SURPLUS FOR INVESTMENT IN AN ENTERPRISE ZONE.
42-7 SECTION 45. Section 171.1015(f)(1), Tax Code, is amended to
42-8 read as follows:
42-9 (1) "Enterprise project" means a person designated by
42-10 the Texas Department of Economic Development [Commerce] as an
42-11 enterprise project under Chapter 2303, Government Code.
42-12 SECTION 46. Section 171.1015(g), Tax Code, is amended to
42-13 read as follows:
42-14 (g) Only qualified businesses that have been certified as
42-15 eligible for a tax deduction under this section by the Texas
42-16 Department of Economic Development [Commerce] to the comptroller
42-17 and the Legislative Budget Board are entitled to the tax deduction.
42-18 SECTION 47. The heading of Section 171.1016, Tax Code, is
42-19 amended to read as follows:
42-20 Sec. 171.1016. REDUCTION OF TAXABLE CAPITAL OR TAXABLE
42-21 EARNED SURPLUS FOR INVESTMENT IN A READJUSTMENT ZONE.
42-22 SECTION 48. Section 171.1016(f)(1), Tax Code, is amended to
42-23 read as follows:
42-24 (1) "Defense readjustment project" means a person
42-25 designated by the Texas Department of Economic Development
43-1 [Commerce] as a defense readjustment project under Chapter 2310,
43-2 Government Code.
43-3 SECTION 49. Section 171.1016(g), Tax Code, is amended to
43-4 read as follows:
43-5 (g) Only qualified businesses that have been certified as
43-6 eligible for a tax deduction under this section by the Texas
43-7 Department of Economic Development [Commerce] to the comptroller
43-8 and the Legislative Budget Board are entitled to the tax deduction.
43-9 SECTION 50. The heading of Section 171.107, Tax Code, is
43-10 amended to read as follows:
43-11 Sec. 171.107. DEDUCTION OF COST OF SOLAR ENERGY DEVICE FROM
43-12 TAXABLE CAPITAL OR TAXABLE EARNED SURPLUS APPORTIONED TO THIS
43-13 STATE.
43-14 SECTION 51. Section 171.110, Tax Code, is amended by adding
43-15 Subsections (i) and (j) to read as follows:
43-16 (i) For purposes of this section, any person designated as
43-17 an officer is presumed to be an officer if that person:
43-18 (1) holds an office created by the board of directors
43-19 or pursuant to the corporate charter or bylaws, and
43-20 (2) has legal authority to bind the corporation with
43-21 third parties by executing contracts or other legal documents.
43-22 (j) A corporation may rebut the presumption described in
43-23 Subsection (i) that a person is an officer if it conclusively
43-24 shows, through the person's job description or other documentation,
43-25 that the person does not participate or have authority to
44-1 participate in significant policymaking aspects of the corporate
44-2 operations.
44-3 SECTION 52. Section 171.501(a), Tax Code, is amended to read
44-4 as follows:
44-5 (a) A corporation that has been certified a qualified
44-6 business as provided by Chapter 2303, Government Code may apply for
44-7 and be granted a refund of franchise tax paid with an initial or
44-8 annual report if the governing body or bodies certify to the Texas
44-9 Department of Economic Development [Commerce] that the business has
44-10 created 10 or more new jobs in its enterprise zone held by
44-11 qualified employees during the calendar year that contains the end
44-12 of the accounting period on which the report is based. The Texas
44-13 Department of Economic Development [Commerce] shall certify
44-14 eligibility for any refund to the comptroller.
44-15 SECTION 53. The heading of Subchapter C, Chapter 183, Tax
44-16 Code, is amended to read as follows:
44-17 SUBCHAPTER C. MIXED BEVERAGE TAX CLEARANCE [FUND]
44-18 SECTION 54. The heading of Section 183.051, Tax Code, is
44-19 amended to read as follows:
44-20 Sec. 183.051. MIXED BEVERAGE TAX CLEARANCE [FUND]
44-21 SECTION 55. Section 183.051(b), Tax Code, is amended to read
44-22 as follows:
44-23 (b) The comptroller shall issue to each county a warrant
44-24 drawn on the general revenue [mixed beverage tax clearance] fund in
44-25 the amount of 10.7143 percent of mixed beverage receipts from
45-1 permittees within the county during the quarter and shall issue to
45-2 each incorporated municipality a warrant drawn on that fund in the
45-3 amount of 10.7143 percent of mixed beverage receipts from
45-4 permittees within the incorporated municipality during the quarter.
45-5 [The remainder of the receipts for the quarter and all interest
45-6 earned on that fund shall be transferred to the general revenue
45-7 fund.]
45-8 SECTION 56. Section 191.085(b), Tax Code, is amended to read
45-9 as follows:
45-10 (b) The person shall keep the record open for four [two]
45-11 years for inspection by the comptroller or the attorney general.
45-12 SECTION 57. Section 203.051(a), Tax Code, is amended to read
45-13 as follows:
45-14 (a) A producer shall keep a complete record of all sulphur
45-15 he produces in this state. A producer may destroy a record
45-16 required by this section four [three] years after the last entry in
45-17 the record.
45-18 SECTION 58. Section 321.103, Tax Code, is amended by adding
45-19 Subsections (e), (f), and (g) to read as follows:
45-20 (e) If as a result of the imposition or increase in a sales
45-21 and use tax by a municipality in which there is located all or part
45-22 of a local governmental entity with an existing sales and use tax
45-23 or as a result of the annexation by a municipality of all or part
45-24 of the territory in a local governmental entity with an existing
45-25 sales and use tax the overlapping local sales and use taxes in the
46-1 area will exceed two percent, the entity's sales and use tax is
46-2 automatically reduced in that area to a rate that when added to the
46-3 combined rate of local sales and use taxes will equal two percent.
46-4 (f) If an entity's rate is reduced in accordance with
46-5 Subsection (e), the comptroller shall withhold from the
46-6 municipality's monthly sales and use tax allocation an amount equal
46-7 to the amount that would have been collected by the entity had the
46-8 municipality not imposed or increased its sales and use tax or
46-9 annexed the area in the entity less amounts that the entity
46-10 collects following the municipality's levy of or increase in its
46-11 sales and use tax or annexation of the area in the district. The
46-12 comptroller shall withhold and pay the amount withheld to the
46-13 entity under policies or procedures that the comptroller considers
46-14 reasonable.
46-15 (g) A transit authority is not a local governmental entity
46-16 for the purposes of Subsections (e) and (f).
46-17 SECTION 59. Section 323.102(c), Tax Code, is amended to read
46-18 as follows:
46-19 (c) A tax imposed under Section 323.105 of this code or
46-20 Chapter 326, Local Government Code, takes effect on the first day
46-21 of the first calendar quarter after the expiration of the first
46-22 complete calendar quarter occurring after the date on which the
46-23 comptroller receives a notice of the action as required by Section
46-24 323.405(b).
46-25 SECTION 60. Section 323.105(e), Tax Code, is amended to read
47-1 as follows:
47-2 (e) The comptroller shall remit to the county amounts
47-3 collected at the rate imposed under this section as part of the
47-4 regular allocation of county tax revenue collected by the
47-5 comptroller, if the district is composed of the entire county. The
47-6 comptroller [county] shall, if the district is composed of an area
47-7 less than the entire county, remit the amount to the district.
47-8 Retailers may not be required to use the allocation and reporting
47-9 procedures in the collection of taxes under this section different
47-10 from the procedures that retailers use in the collection of other
47-11 sales and use taxes under this chapter. An item, transaction, or
47-12 service that is taxable in a county under a sales or use tax
47-13 authorized by another section of this chapter is taxable under this
47-14 section. An item, transaction, or service that is not taxable in a
47-15 county under a sales or use tax authorized by another section of
47-16 this chapter is not taxable under this section.
47-17 SECTION 61. Section 351.006, Tax Code, is amended to read as
47-18 follows:
47-19 Sec. 351.006. Exemption. (a) A United States governmental
47-20 entity described in Section 156.103(a) is exempt from the payment
47-21 of tax authorized by this chapter. [A governmental entity excepted
47-22 from the tax imposed by Chapter 156 under Section 156.103(a)(1) or
47-23 (a)(3) shall pay the tax imposed by this chapter but is entitled to
47-24 a refund of the tax paid.]
47-25 (b) A state governmental entity described in Section
48-1 156.103(b) shall pay the tax imposed by this chapter but is
48-2 entitled to a refund of the tax paid.
48-3 (c) A person who is described by Section 156.103(d) is
48-4 exempt from the payment of the tax authorized by this chapter.
48-5 (d) [(c)] A person who is described by Section 156.103(c)
48-6 shall pay the tax imposed by this chapter but the state
48-7 governmental entity with whom the person is associated is entitled
48-8 to a refund of the tax paid.
48-9 (e) [(d)] To receive a refund of tax paid under this
48-10 chapter, the governmental entity entitled to the refund must file a
48-11 refund claim on a form provided by the municipality and containing
48-12 the information required by the municipality. The comptroller by
48-13 rule shall prescribe the form that must be used and the information
48-14 that must be provided.
48-15 (f) [(e)] A governmental entity may file a refund claim with
48-16 the municipality under this chapter only for each calendar quarter
48-17 for all reimbursements accrued during that quarter. The
48-18 municipality may adopt an ordinance to enforce this section.
48-19 SECTION 62. Section 352.007, Tax Code, is amended to read as
48-20 follows:
48-21 Sec. 352.007. Exemption. (a) A United States governmental
48-22 entity described in Section 156.103(a) is exempt from the payment
48-23 of tax authorized by this chapter. [A governmental entity excepted
48-24 from the tax imposed by Chapter 156 under Section 156.103(a)(1) or
48-25 (a)(3) shall pay the tax imposed by this chapter but is entitled to
49-1 a refund of the tax paid.]
49-2 (b) A state governmental entity subject to the tax imposed
49-3 by Chapter 156 under Section 156.103(b) shall pay the tax imposed
49-4 by this chapter but is entitled to a refund of the tax paid.
49-5 (c) A person who is described by Section 156.103(d) is
49-6 exempt from the payment of the tax authorized by this chapter.
49-7 (d) [(c)] A person who is described by Section 156.103(c)
49-8 shall pay the tax imposed by this chapter but the state
49-9 governmental entity with whom the person is associated is entitled
49-10 to a refund of the tax paid.
49-11 (e) [(d)] To receive a refund of a tax paid under this
49-12 chapter, the governmental entity entitled to the refund must file a
49-13 refund claim on a form provided by the county and containing the
49-14 information required by the county. The comptroller by rule shall
49-15 prescribe the form that must be used and the information that must
49-16 be provided.
49-17 (f) [(e)] A governmental entity may file a refund claim with
49-18 the county under this chapter only for each calendar quarter for
49-19 all reimbursements accrued during that quarter. The county may
49-20 adopt a resolution to enforce this section.
49-21 SECTION 63. Subsection 4B(e), Development Corporation Act of
49-22 1979 (Article 5190.6, Vernon's Texas Civil Statutes), as amended by
49-23 Section 3, Chapter 1022, and Section 12, Chapter 1031, Acts of the
49-24 73rd Legislature, Regular Session, 1993, is reenacted to read as
49-25 follows:
50-1 (e) The rate of a tax adopted under this section must be
50-2 one-eighth, one-fourth, three-eighths, or one-half of one percent.
50-3 The ballot proposition at the election held to adopt the tax must
50-4 specify the rate of the tax to be adopted. A corporation that
50-5 holds an election to reduce a tax imposed under Section 4A of this
50-6 Act may in a separate proposition on the same ballot adopt a tax
50-7 under this section. If an eligible city adopts the tax, a tax is
50-8 imposed on the receipts from the sale at retail of taxable items
50-9 within the eligible city at the rate approved at the election.
50-10 There is also imposed an excise tax on the use, storage, or other
50-11 consumption within the eligible city of tangible personal property
50-12 purchased, leased, or rented from a retailer during the period that
50-13 the tax is effective within the eligible city. The rate of the
50-14 excise tax is the same as the rate of the sales tax portion of the
50-15 tax and is applied to the sale price of the tangible personal
50-16 property.
50-17 SECTION 64. Section 152.062(d), Tax Code, is repealed.
50-18 SECTION 65. Each change in law made to the following
50-19 provisions by this Act is a clarification of existing law and does
50-20 not imply that existing law may be construed as inconsistent with
50-21 the law as amended by this Act:
50-22 (1) Section 102.075, Code of Criminal Procedure;
50-23 (2) Section 9, Texas State College and University
50-24 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
50-25 Texas Insurance Code;
51-1 (3) Section 11, Texas Public School Employees Group
51-2 Insurance Act (Article 3.50-4, Insurance Code);
51-3 (4) Section 326.029, Local Government Code;
51-4 (5) Section 326.092, Local Government Code;
51-5 (6) Section 151.350(d), Tax Code;
51-6 (7) Section 152.041, Tax Code;
51-7 (8) Section 153.117, Tax Code;
51-8 (9) Section 153.119, Tax Code;
51-9 (10) Section 153.206, Tax Code;
51-10 (11) Section 153.219, Tax Code;
51-11 (12) Section 171.063, Tax Code;
51-12 (13) The heading of Subchapter C, Chapter 171, Tax
51-13 Code;
51-14 (14) The headings of Sections 171.1015, 171.1016, and
51-15 171.107, Tax Code;
51-16 (15) Section 171.110, Tax Code;
51-17 (16) Section 191.085, Tax Code; and
51-18 (17) Section 203.051, Tax Code.
51-19 SECTION 66. The comptroller of public accounts may adopt
51-20 rules and take other actions before October 1, 1999, as the
51-21 comptroller deems necessary or advisable to prepare for the taking
51-22 effect of this Act.
51-23 SECTION 67. (a) Except as provided by Subsections (b), (c),
51-24 and (d), this Act takes effect October 1, 1999.
51-25 (b) Section 3 of this Act takes effect January 1, 2000, and
52-1 applies to reporting periods beginning on or after that date.
52-2 (c) Sections 41 through 52 of this Act take effect January
52-3 1, 2000, and apply to a report originally due on or after that
52-4 date.
52-5 (d) Sections 59 and 66 of this Act take effect on the
52-6 earliest date on which they may take effect under Section 39,
52-7 Article III, Texas Constitution.
52-8 SECTION 68. The importance of this legislation and the
52-9 crowded condition of the calendars in both houses create an
52-10 emergency and an imperative public necessity that the
52-11 constitutional rule requiring bills to be read on three several
52-12 days in each house be suspended, and this rule is hereby suspended,
52-13 and that this Act take effect and be in force according to its
52-14 terms, and it is so enacted.