By Hochberg H.B. No. 3774
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 exempting from the sales and use tax motor vehicle
1-3 parking and storage services provided by certain parking
1-4 facilities.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
1-7 by adding Section 151.3132 to read as follows:
1-8 Sec. 151.3132. PARKING AND STORAGE SERVICES. (a) Motor
1-9 vehicle parking and storage services are exempted under this
1-10 section from the taxes imposed by this chapter only if the services
1-11 are:
1-12 (1) provided at a parking facility owned or operated
1-13 by:
1-14 (A) a health facility;
1-15 (B) a nonprofit corporation that has donated
1-16 land on which a health facility is located or land that a health
1-17 facility uses to enhance the delivery of health services provided
1-18 by the health facility; or
1-19 (C) an entity that contracts with the health
1-20 facility or nonprofit corporation to provide the motor vehicle
1-21 parking and storage services; and
2-1 (2) the motor vehicle parking and storage services are
2-2 primarily used by patients of and visitors to the health facility
2-3 and people who work at the health facility.
2-4 (b) A person who operates a facility that provides motor
2-5 vehicle parking and storage services is not exempted under this
2-6 section until the person submits to the comptroller, in the form
2-7 required by the comptroller, notice that the person operates a
2-8 facility eligible for exemption and the comptroller verifies that
2-9 the facility is eligible. The comptroller shall maintain a list of
2-10 facilities in this state that provide motor vehicle parking and
2-11 storage services that are exempted from the taxes imposed under
2-12 this chapter.
2-13 (c) A facility that provides motor vehicle parking and
2-14 storage services exempted under this section shall prominently
2-15 display at the entrance or payment area of the facility a notice
2-16 that the parking and storage services provided are exempted from
2-17 the taxes imposed under this chapter.
2-18 (d) In this section, "health facility" means:
2-19 (1) a hospital, clinic, nursing home, extended care
2-20 facility, outpatient facility, rehabilitation facility, medical or
2-21 dental laboratory, medical or dental office building, x-ray or
2-22 scanning facility, medical or dental research, diagnostic, or
2-23 educational facility;
2-24 (2) an adult care facility, foster care facility,
2-25 live-care facility, retirement home or village, home for the aging,
3-1 or other facility that furnishes medical or nursing attention or
3-2 services and food and shelter to an individual for more than one
3-3 year;
3-4 (3) a multi-unit housing facility for the staff,
3-5 nurses, interns, and other employees of a health facility and for
3-6 their relatives or for patients or relatives of patients admitted
3-7 for treatment or care in a health facility; or
3-8 (4) any other structure or facility that is related to
3-9 or essential to the operation of a health facility.
3-10 SECTION 2. (a) This Act takes effect October 1, 1999.
3-11 (b) A facility that provides motor vehicle parking and
3-12 storage services exempted under Section 151.3132, Tax Code, as
3-13 added by this Act, that is in existence on the effective date of
3-14 this Act, and that provides users with a separate statement of the
3-15 amount charged for services and taxes may not:
3-16 (1) collect taxes imposed under Chapter 151, Tax Code,
3-17 on or after the date on which the facility is exempted; or
3-18 (2) increase the amount charged for motor vehicle
3-19 parking and storage services before the 180th day after the date on
3-20 which the facility is exempted.
3-21 (c) A facility that provides motor vehicle parking and
3-22 storage services exempted under Section 151.3132, Tax Code, as
3-23 added by this Act, that is in existence on the effective date of
3-24 this Act, and that charges tax inclusive rates for motor vehicle
3-25 parking and storage services:
4-1 (1) shall reduce each rate charged to an amount not to
4-2 exceed the amount obtained by multiplying each rate charged by the
4-3 percentage obtained by dividing 1.00 by 1.00 plus the combined
4-4 state, local, and transportation authority tax rate otherwise
4-5 applicable to the facility on the date on which the facility is
4-6 exempted; and
4-7 (2) may not increase those rates before the 180th day
4-8 after the date on which the facility is exempted.
4-9 (d) A facility that provides motor vehicle parking and
4-10 storage services exempted under Section 151.3132, Tax Code, as
4-11 added by this Act, and that is not in existence on the effective
4-12 date of this Act, may not collect taxes imposed under Chapter 151,
4-13 Tax Code, on or after the date on which the facility is exempted.
4-14 SECTION 3. The importance of this legislation and the
4-15 crowded condition of the calendars in both houses create an
4-16 emergency and an imperative public necessity that the
4-17 constitutional rule requiring bills to be read on three several
4-18 days in each house be suspended, and this rule is hereby suspended.