By Culberson H.B. No. 3397
76R9346 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the repeal of the application of the sales and use tax
1-3 to certain services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.0101(a), Tax Code, is amended to read
1-6 as follows:
1-7 (a) "Taxable services" means:
1-8 (1) amusement services;
1-9 (2) cable television services;
1-10 (3) personal services;
1-11 (4) motor vehicle parking and storage services;
1-12 (5) the repair, remodeling, maintenance, and
1-13 restoration of tangible personal property, except:
1-14 (A) aircraft;
1-15 (B) a ship, boat, or other vessel, other than:
1-16 (i) a taxable boat or motor as defined by
1-17 Section 160.001;
1-18 (ii) a sports fishing boat; or
1-19 (iii) any other vessel used for pleasure;
1-20 (C) the repair, maintenance, and restoration of
1-21 a motor vehicle; and
1-22 (D) the repair, maintenance, creation, and
1-23 restoration of a computer program, including its development and
1-24 modification, not sold by the person performing the repair,
2-1 maintenance, creation, or restoration service; and
2-2 (6) [telecommunications services;]
2-3 [(7) credit reporting services;]
2-4 [(8) debt collection services;]
2-5 [(9) insurance services;]
2-6 [(10) information services;]
2-7 [(11) real property services;]
2-8 [(12) data processing services;]
2-9 [(13) real property repair and remodeling;]
2-10 [(14) security services; and]
2-11 [(15)] telephone answering services.
2-12 SECTION 2. Section 151.008(b), Tax Code, is amended to read
2-13 as follows:
2-14 (b) "Seller" and "retailer" include:
2-15 (1) a person in the business of making sales at
2-16 auction of tangible personal property owned by the person or by
2-17 another;
2-18 (2) a person who makes more than two sales of taxable
2-19 items during a 12-month period, including sales made in the
2-20 capacity of an assignee for the benefit of creditors or receiver or
2-21 trustee in bankruptcy;
2-22 (3) a person regarded by the comptroller as a seller
2-23 or retailer under Section 151.024 of this code; and
2-24 (4) [a hotel, motel, or owner or lessor of an office
2-25 or residential building or development that contracts and pays for
2-26 telecommunications services for resale to guests or tenants; and]
2-27 [(5)] a person who engages in regular or systematic
3-1 solicitation of sales of taxable items in this state by the
3-2 distribution of catalogs, periodicals, advertising flyers, or other
3-3 advertising, by means of print, radio, or television media, or by
3-4 mail, telegraphy, telephone, computer data base, cable, optic,
3-5 microwave, or other communication system for the purpose of
3-6 effecting sales of taxable items.
3-7 SECTION 3. Section 151.0102, Tax Code, is amended to read as
3-8 follows:
3-9 Sec. 151.0102. "TELEPHONE ANSWERING SERVICES". "Telephone
3-10 answering services" means the receiving and relaying of telephone
3-11 messages by a human operator. The term does not include the
3-12 automated receiving and relaying of telephone messages [included
3-13 within the definition of "telecommunications services" under
3-14 Section 151.0103].
3-15 SECTION 4. Section 151.320(b), Tax Code, is amended to read
3-16 as follows:
3-17 (b) "Magazine" means a publication that is usually
3-18 paperbacked and sometimes illustrated, that appears at a regular
3-19 interval, and that contains stories, articles, and essays by
3-20 various writers and advertisements. ["Magazine" does not mean the
3-21 publication of current information which is taxable pursuant to
3-22 Section 151.0038 of this code as an "information service."]
3-23 SECTION 5. The following provisions of the Tax Code are
3-24 repealed:
3-25 (1) Section 151.0034;
3-26 (2) Section 151.0035;
3-27 (3) Section 151.0036;
4-1 (4) Section 151.0038;
4-2 (5) Section 151.0039;
4-3 (6) Section 151.0047;
4-4 (7) Section 151.0048;
4-5 (8) Section 151.0075;
4-6 (9) Section 151.0103;
4-7 (10) Section 151.025(c);
4-8 (11) Section 151.323; and
4-9 (12) Section 151.350.
4-10 SECTION 6. (a) This Act takes effect on the first day of
4-11 the first calendar quarter beginning on or after the earliest date
4-12 that it may take effect under Section 39, Article III, Texas
4-13 Constitution.
4-14 (b) The change in law made by this Act does not affect taxes
4-15 imposed before the effective date of this Act, and the law in
4-16 effect before that date is continued in effect for purposes of the
4-17 liability for and collection of those taxes.
4-18 SECTION 7. The importance of this legislation and the
4-19 crowded condition of the calendars in both houses create an
4-20 emergency and an imperative public necessity that the
4-21 constitutional rule requiring bills to be read on three several
4-22 days in each house be suspended, and this rule is hereby suspended,
4-23 and that this Act take effect and be in force according to its
4-24 terms, and it is so enacted.