By: Armbrister S.B. No. 1488
A BILL TO BE ENTITLED
AN ACT
1-1 relating to technical changes to statutes involving taxes or fees
1-2 administered by the comptroller of public accounts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (g), Article 102.075, Code of Criminal
1-5 Procedure, is amended to read as follows:
1-6 (g) A municipality or county may retain 10 percent of the
1-7 money collected under this article as a service fee for the
1-8 collection if the municipality or county remits the funds to the
1-9 comptroller within the period prescribed in Subsection (f). The
1-10 municipality or county may retain any interest accrued on the money
1-11 if the custodian of the money deposited in the treasury keeps
1-12 records of the amount of money collected under this article that is
1-13 on deposit in the treasury and remits the funds to the comptroller
1-14 within the period prescribed in Subsection (f).
1-15 SECTION 2. Subsection (b), Section 12, Article 1.14-1,
1-16 Insurance Code, is amended to read as follows:
1-17 (b) The report shall be filed and any tax due shall be paid
1-18 by the insured or by any other person designated by the insured.
1-19 The report and tax are due on or before May 15 [March 1] of the
1-20 calendar year after the calendar year in which the insurance was
1-21 procured, continued, or renewed or on another date prescribed by
1-22 the comptroller.
1-23 SECTION 3. Subsections (a) and (b), Section 12, Article
1-24 1.14-2, Insurance Code, are amended to read as follows:
2-1 (a) The premiums charged for surplus lines insurance are
2-2 subject to a premium receipts tax of 4.85 percent of gross premiums
2-3 charged for such insurance. The term premium includes all
2-4 premiums, membership fees, assessments, dues or any other
2-5 consideration for insurance. Such tax shall be in lieu of all
2-6 other insurance taxes. The surplus lines agent shall collect from
2-7 the insured the amount of the tax at the time of delivery of the
2-8 cover note, certificate of insurance, policy or other initial
2-9 confirmation of insurance, in addition to the full amount of the
2-10 gross premium charged by the insurer for the insurance. No agent
2-11 shall absorb such tax nor shall any agent, as an inducement for
2-12 insurance or for any other reason, rebate all or any part of such
2-13 tax or his commission. The surplus lines agent shall file a report
2-14 and pay taxes to the comptroller on or before March 1 of each year
2-15 on forms prescribed by the comptroller. The [the] amount of taxes
2-16 shall be based on gross premiums written or received for such
2-17 insurance placed through an eligible surplus lines insurer during
2-18 the calendar year ending on the preceding December 31. A tax
2-19 prepayment shall be required any time accrued taxes due equal or
2-20 exceed $70,000. The prepayment of the accrued taxes, with a form
2-21 prescribed by the comptroller, shall be due by the 15th day of the
2-22 month following the month in which accrued taxes total $70,000 [and
2-23 shall pay to the comptroller the tax as provided for by this
2-24 Article]. If a surplus lines policy covers risks or exposures only
2-25 partially in this state, the tax payable shall be computed on the
2-26 portions of the premium which are properly allocated to the risks
3-1 or exposures located in this state. In determining the amount of
3-2 premiums taxable in this state, all premiums written, procured, or
3-3 received in this state and all premiums on policies negotiated in
3-4 this state shall be deemed written on property or risks located or
3-5 resident in this state, except such premiums as are properly
3-6 allocated or apportioned and reported as premiums which may be
3-7 subject to taxation by any other state or states. Premiums that
3-8 are properly allocated to any other state or states that are
3-9 specifically exempt from taxation under the regulations of that
3-10 state or states are not taxable in this state. Premiums on risks
3-11 or exposures which are properly allocated to federal waters,
3-12 international waters or under the jurisdiction of a foreign
3-13 government shall not be taxable by this state. In event of
3-14 cancellation and rewriting of any surplus lines insurance contract
3-15 the additional premium for premium receipts tax purposes shall be
3-16 the premium in excess of the unearned premium of the canceled
3-17 insurance contract.
3-18 (b) All surplus lines premium receipt taxes collected by a
3-19 surplus lines agent are trust funds in his hands [and the property
3-20 of this state. Such funds shall be maintained by the surplus lines
3-21 agent in a separate account and shall not be mingled with any other
3-22 funds, either business or private]. Any surplus lines agent who
3-23 fails or refuses to pay over to the state the surplus lines premium
3-24 receipts tax at the time required by [in] this section, or who
3-25 fraudulently withholds or appropriates or otherwise uses such money
3-26 or any portions thereof belonging to the state is guilty of theft
4-1 and shall be punished as provided by law for the crime of theft,
4-2 irrespective of whether any such surplus lines agent has or claims
4-3 to have any interest in such money so received by him.
4-4 SECTION 4. Subsection (b), Section 9, Texas State College
4-5 and University Employees Uniform Insurance Benefits Act (Article
4-6 3.50-3, Vernon's Texas Insurance Code), is amended to read as
4-7 follows:
4-8 (b) Premiums on policies, insurance contracts, or agreements
4-9 with health maintenance organizations established under this Act
4-10 are not subject to any state tax, regulatory fee, or surcharge,
4-11 including premium or maintenance taxes or fees.
4-12 SECTION 5. Subsection (b), Section 11, Texas Public School
4-13 Employees Group Insurance Act (Article 3.50-4, Insurance Code), is
4-14 amended to read as follows:
4-15 (b) A premium or contribution on a policy, insurance
4-16 contract, or agreement authorized as provided by this article is
4-17 not subject to any state tax, regulatory fee, or surcharge,
4-18 including premium or maintenance taxes or fees.
4-19 SECTION 6. Subsection (a), Section 326.029, Local Government
4-20 Code, is amended to read as follows:
4-21 (a) If a majority of the votes received in the election
4-22 favor the creation of the district and the adoption of the sales
4-23 and use tax, the commissioners court shall by resolution or order
4-24 declare that the district is created and shall declare the amount
4-25 of the local sales and use tax adopted and enter the result in its
4-26 minutes.
5-1 SECTION 7. Subsection (a), Section 326.092, Local Government
5-2 Code, is amended to read as follows:
5-3 (a) Chapter 323, Tax Code, to the extent not inconsistent
5-4 with this chapter, governs the imposition, computation,
5-5 administration, and governance of the tax under this subchapter,
5-6 except that Sections 323.101, 323.105, [and] 323.404, and 323.406
5-7 through 323.408, Tax Code, do not apply.
5-8 SECTION 8. Section 101.003, Tax Code, is amended by adding
5-9 Subdivision (13) to read as follows:
5-10 (13) "Tax" means a tax, fee, assessment, charge, or
5-11 other amount that the comptroller is authorized to administer.
5-12 SECTION 9. Subsection (b), Section 111.0041, Tax Code, is
5-13 amended to read as follows:
5-14 (b) This section prevails over any other conflicting
5-15 provision of this title [except Section 191.024(b) of this code].
5-16 SECTION 10. Section 111.023, Tax Code, is amended to read as
5-17 follows:
5-18 Sec. 111.023. WRITTEN AUTHORIZATION. (a) The comptroller
5-19 may require that a report, return, declaration, claim for refund,
5-20 or other document that is required or permitted to be filed with
5-21 the comptroller and that is submitted by an attorney, accountant,
5-22 or other representative of a taxpayer [person] on behalf of the
5-23 taxpayer [person] be accompanied by express written authorization
5-24 of the taxpayer [person] in whose name or on whose behalf it is
5-25 purportedly submitted.
5-26 (b) An officer, director, or employee of the taxpayer whose
6-1 duties include administering the taxpayer's rights and
6-2 responsibilities with the comptroller may sign the written
6-3 authorization. The authorization must include the title and
6-4 telephone number of the officer, director, or employee who signs
6-5 the authorization for verification by the comptroller.
6-6 (c) The comptroller may impose a requirement of Subsection
6-7 (b) on a taxpayer's assignment of a claim for refund.
6-8 SECTION 11. Subsection (e), Section 111.104, Tax Code, is
6-9 amended to read as follows:
6-10 (e) This section applies to all taxes and license fees
6-11 collected or administered by the comptroller, except the state
6-12 property tax [and those taxes that qualify for refund allowed under
6-13 Section 151.318(g) or (n)].
6-14 SECTION 12. Section 111.107, Tax Code, is amended to read as
6-15 follows:
6-16 Sec. 111.107. WHEN REFUND OR CREDIT IS PERMITTED. Except as
6-17 otherwise expressly provided, a person may request a refund or a
6-18 credit or the comptroller may make a refund or issue a credit for
6-19 the overpayment of a tax imposed by this title at any time before
6-20 the expiration of the period during which the comptroller may
6-21 assess a deficiency for the tax and not thereafter unless the
6-22 refund or credit is requested:
6-23 (1) under Subchapter B of Chapter 112 and the refund
6-24 is made or the credit is issued under a court order;
6-25 (2) under the provision of Section 111.104(c)(3)
6-26 applicable to a refund claim filed after a jeopardy or deficiency
7-1 determination becomes final; or
7-2 (3) under Chapter 153, except Section 153.1195(e),
7-3 153.121(d), 153.2225(e), or 153.224(d)[; or]
7-4 [(4) under Section 151.318(g) or (n)].
7-5 SECTION 13. Subsections (c) and (e), Section 151.310, Tax
7-6 Code, are amended to read as follows:
7-7 (c) An organization that qualifies for an exemption under
7-8 Subsection (a)(1) or (a)(2) of this section, and each bona fide
7-9 chapter of the organization, may hold two tax-free sales or
7-10 auctions under this subsection during a calendar year and each
7-11 tax-free sale or auction may continue for one day only. The sale
7-12 of a taxable item the sales price of which is $5,000 or less by a
7-13 qualified organization or chapter of the organization at a tax-free
7-14 sale or auction is exempted from the sales tax imposed by
7-15 Subchapter C of this chapter, except that a taxable item
7-16 manufactured by or donated to the qualified organization or chapter
7-17 of the organization may be sold tax free regardless of the sales
7-18 price to any purchaser other than the donor. The storage, use, or
7-19 consumption of a taxable item that is acquired from a qualified
7-20 organization or chapter of the organization at a tax-free sale or
7-21 auction and that is exempted under this subsection from the taxes
7-22 imposed by Subchapter C of this chapter is exempted from the use
7-23 tax imposed by Subchapter D of this chapter until the item is
7-24 resold or subsequently transferred.
7-25 (e) A nonprofit hospital or hospital system that qualifies
7-26 for an exemption under Subsection (a)(2) shall provide community
8-1 benefits that include charity care and government-sponsored
8-2 indigent health care [community benefits] as set forth in
8-3 Subchapter D, Chapter 311, Health and Safety Code. [Subdivision
8-4 (1), (2), (3), (4), (5), (6), (7), or (8) below:]
8-5 [(1) charity care and government-sponsored indigent
8-6 health care are provided at a level which is reasonable in relation
8-7 to the community needs, as determined through the community needs
8-8 assessment, the available resources of the hospital or hospital
8-9 system, and the tax-exempt benefits received by the hospital or
8-10 hospital system;]
8-11 [(2) charity care and government-sponsored indigent
8-12 health care are provided in an amount equal to at least four
8-13 percent of the hospital's or hospital system's net patient revenue;]
8-14 [(3) charity care and government-sponsored indigent
8-15 health care are provided in an amount equal to at least 100 percent
8-16 of the hospital's or hospital system's tax-exempt benefits,
8-17 excluding federal income tax;]
8-18 [(4) for tax periods beginning before January 1, 1996,
8-19 charity care and community benefits are provided in a combined
8-20 amount equal to at least five percent of the hospital's or hospital
8-21 system's net patient revenue, provided that charity care and
8-22 government-sponsored indigent health care are provided in an amount
8-23 equal to at least three percent of net patient revenue;]
8-24 [(5) for tax periods beginning after December 31,
8-25 1995, charity care and community benefits are provided in a
8-26 combined amount equal to at least five percent of the hospital's or
9-1 hospital system's net patient revenue, provided that charity care
9-2 and government-sponsored indigent health care are provided in an
9-3 amount equal to at least four percent of net patient revenue;]
9-4 [(6) a nonprofit hospital that has been designated as
9-5 a disproportionate share hospital under the state Medicaid program
9-6 in the current year or in either of the previous two fiscal years
9-7 is considered to have provided a reasonable amount of charity care
9-8 and government-sponsored indigent health care and is considered in
9-9 compliance with the standards provided by this subsection;]
9-10 [(7) a hospital operated on a nonprofit basis that is
9-11 located in a county with a population of less than 50,000 and in
9-12 which the entire county or the population of the entire county has
9-13 been designated as a health professionals shortage area is
9-14 considered to be in compliance with the standards provided by this
9-15 subsection; or]
9-16 [(8) a hospital providing health care services to
9-17 inpatients or outpatients without receiving any payment for
9-18 providing those services from any source, including the patient or
9-19 person legally obligated to support the patient, third-party
9-20 payors, Medicare, Medicaid, or any other state or local indigent
9-21 care program but excluding charitable donations, legacies,
9-22 bequests, or grants or payments for research, is considered to be
9-23 in compliance with the standards provided by this subsection.]
9-24 [For purposes of satisfying Subdivision (5), a hospital or
9-25 hospital system may not change its existing fiscal year unless the
9-26 hospital or hospital system changes its ownership or corporate
10-1 structure as a result of a sale or merger.]
10-2 [For purposes of this subsection, a hospital that satisfies
10-3 Subdivision (1), (6), (7), or (8) shall be excluded in determining
10-4 a hospital system's compliance with the standards provided by
10-5 Subdivision (2), (3), (4), or (5).]
10-6 [For purposes of this subsection, the terms "charity care,"
10-7 "government-sponsored indigent health care," "health care
10-8 organization," "hospital system," "net patient revenue," "nonprofit
10-9 hospital," and "tax-exempt benefits" have the meanings set forth in
10-10 Sections 311.031 and 311.042, Health and Safety Code. A
10-11 determination of the amount of community benefits and charity care
10-12 and government-sponsored indigent health care provided by a
10-13 hospital or hospital system and the hospital's or hospital system's
10-14 compliance with the requirements of this subsection and Section
10-15 311.045, Health and Safety Code, shall be based on the most
10-16 recently completed and audited prior fiscal year of the hospital or
10-17 hospital system.]
10-18 [The providing of charity care and government-sponsored
10-19 indigent health care in accordance with Subdivision (1) shall be
10-20 guided by the prudent business judgment of the hospital which will
10-21 ultimately determine the appropriate level of charity care and
10-22 government-sponsored indigent health care based on the community
10-23 needs, the available resources of the hospital, the tax-exempt
10-24 benefits received by the hospital, and other factors that may be
10-25 unique to the hospital, such as the hospital's volume of Medicare
10-26 and Medicaid patients. These criteria shall not be determinative
11-1 factors, but shall be guidelines contributing to the hospital's
11-2 decision along with other factors which may be unique to the
11-3 hospital. The formulas contained in Subdivisions (2), (3), (4),
11-4 and (5) shall also not be considered determinative of a reasonable
11-5 amount of charity care and government-sponsored indigent health
11-6 care.]
11-7 [The requirements of this subsection shall not apply to the
11-8 extent a hospital or hospital system demonstrates that reductions
11-9 in the amount of community benefits, charity care, and
11-10 government-sponsored indigent health care are necessary to maintain
11-11 financial reserves at a level required by a bond covenant, are
11-12 necessary to prevent the hospital or hospital system from
11-13 endangering its ability to continue operations, or if the hospital
11-14 or hospital system, as a result of a natural or other disaster, is
11-15 required substantially to curtail its operations.]
11-16 [In any fiscal year that a hospital or hospital system,
11-17 through unintended miscalculation, fails to meet any of the
11-18 standards in this subsection, the hospital or hospital system shall
11-19 not lose its tax-exempt status without the opportunity to cure the
11-20 miscalculation in the fiscal year following the fiscal year the
11-21 failure is discovered by both meeting one of the standards and
11-22 providing an additional amount of charity care and
11-23 government-sponsored indigent health care that is equal to the
11-24 shortfall from the previous fiscal year. A hospital or hospital
11-25 system may apply this provision only once every five years.]
11-26 SECTION 14. Section 151.3101, Tax Code, is amended by adding
12-1 Subsection (c) to read as follows:
12-2 (c) In this section, "educational organization" includes an
12-3 entity described by Section 61.003(8) or (15), Education Code.
12-4 SECTION 15. Section 151.312, Tax Code, is amended to read as
12-5 follows:
12-6 Sec. 151.312. PERIODICALS AND WRITINGS OF RELIGIOUS,
12-7 PHILANTHROPIC, CHARITABLE, HISTORICAL, SCIENTIFIC, AND SIMILAR
12-8 ORGANIZATIONS. Periodicals and writings, including those presented
12-9 on audio tape, videotape, and computer disk, that are published and
12-10 [or] distributed by a religious, philanthropic, charitable,
12-11 historical, scientific, or other similar organization that is not
12-12 operated for profit, but excluding an educational organization, are
12-13 exempted from the taxes imposed by this chapter.
12-14 SECTION 16. Section 151.318, Tax Code, is amended by
12-15 amending Subsections (a), (c), (o), (q), and (s), and adding
12-16 Subsections (f) and (t) to read as follows:
12-17 (a) The following items are exempted from the taxes imposed
12-18 by this chapter if sold, leased, or rented to, or stored, used, or
12-19 consumed by a manufacturer:
12-20 (1) tangible personal property that will become an
12-21 ingredient or component part of tangible personal property
12-22 manufactured, processed, or fabricated for ultimate sale;
12-23 (2) tangible personal property directly used or
12-24 consumed in or during the actual manufacturing, processing, or
12-25 fabrication of tangible personal property for ultimate sale if the
12-26 use or consumption of the property is necessary or essential to the
13-1 manufacturing, processing, or fabrication operation and directly
13-2 makes or causes a chemical or physical change to:
13-3 (A) the product being manufactured, processed,
13-4 or fabricated for ultimate sale; or
13-5 (B) any intermediate or preliminary product that
13-6 will become an ingredient or component part of the product being
13-7 manufactured, processed, or fabricated for ultimate sale;
13-8 (3) services performed directly on the product being
13-9 manufactured prior to its distribution for sale and for the purpose
13-10 of making the product more marketable;
13-11 (4) actuators, steam production equipment and its
13-12 fuel, in-process flow through tanks, cooling towers, generators,
13-13 heat exchangers, transformers and the switches, breakers, capacitor
13-14 banks, regulators, relays, reclosers, fuses, interruptors,
13-15 reactors, arrestors, resistors, insulators, instrument
13-16 transformers, and telemetry units that are related to the
13-17 transformers, electronic control room equipment, computerized
13-18 control units, pumps, compressors, and hydraulic units, that are
13-19 used to power, supply, support, or control equipment that qualifies
13-20 for exemption under Subdivision (2) or (5) or to generate
13-21 electricity, chilled water, or steam for ultimate sale;
13-22 transformers located at an electric generating facility that
13-23 increase the voltage of electricity generated for ultimate sale,
13-24 the electrical cable that carries the electricity from the electric
13-25 generating equipment to the step-up transformers, and the switches,
13-26 breakers, capacitor banks, regulators, relays, reclosers, fuses,
14-1 interruptors, reactors, arrestors, resistors, insulators,
14-2 instrument transformers, and telemetry units that are related to
14-3 the step-up transformers; and transformers that decrease the
14-4 voltage of electricity generated for ultimate sale and the
14-5 switches, breakers, capacitor banks, regulators, relays, reclosers,
14-6 fuses, interruptors, reactors, arrestors, resistors, insulators,
14-7 instrument transformers, and telemetry units that are related to
14-8 the step-down transformers; [and]
14-9 (5) tangible personal property [machinery, equipment,
14-10 and replacement parts or accessories] used or consumed in the
14-11 actual manufacturing, processing, or fabrication of tangible
14-12 personal property for ultimate sale if the [their] use or
14-13 consumption of the property is necessary and essential to a
14-14 pollution control process;
14-15 (6) lubricants, chemicals, chemical compounds, gases,
14-16 or liquids that are used or consumed during the actual
14-17 manufacturing, processing, or fabrication of tangible personal
14-18 property for ultimate sale if their use or consumption is necessary
14-19 and essential to prevent the decline, failure, lapse, or
14-20 deterioration of equipment exempted by this section;
14-21 (7) gases used on the premises of a manufacturing
14-22 plant to prevent contamination of raw material or product, or to
14-23 prevent a fire, explosion, or other hazardous or environmentally
14-24 damaging situation at any stage in the manufacturing process or in
14-25 loading or storage of the product or raw material on premises;
14-26 (8) tangible personal property used or consumed during
15-1 the actual manufacturing, processing, or fabrication of tangible
15-2 personal property for ultimate sale if the use or consumption of
15-3 the property is necessary and essential to a quality control
15-4 process;
15-5 (9) safety apparel or work clothing that is used
15-6 during the actual manufacturing, processing, or fabrication of
15-7 tangible personal property for ultimate sale if:
15-8 (A) the manufacturing process would not be
15-9 possible without the use of the apparel or clothing; and
15-10 (B) the apparel or clothing is not resold to the
15-11 employee;
15-12 (10) tangible personal property used or consumed in
15-13 the actual manufacturing, processing, or fabrication of tangible
15-14 personal property for ultimate sale if the use or consumption of
15-15 the property is necessary and essential to comply with federal,
15-16 state, or local laws or rules that establish requirements related
15-17 to public health; and
15-18 (11) tangible personal property specifically installed
15-19 to:
15-20 (A) reduce water use and wastewater flow volumes
15-21 from the manufacturing, processing, fabrication, or repair
15-22 operation;
15-23 (B) reuse and recycle wastewater streams
15-24 generated within the manufacturing, processing, fabrication, or
15-25 repair operation; or
15-26 (C) treat wastewater from another industrial or
16-1 municipal source for the purpose of replacing existing freshwater
16-2 sources in the manufacturing, processing, fabrication, or repair
16-3 operation.
16-4 (c) The exemption does not include:
16-5 (1) intraplant transportation equipment, including
16-6 intraplant transportation equipment used to move a product or raw
16-7 material in connection with the manufacturing process and
16-8 specifically including all piping and conveyor systems, provided
16-9 that the following remain eligible for the exemption:
16-10 (A) piping or conveyor systems that are [is] a
16-11 component part of a single item of manufacturing equipment or
16-12 pollution control equipment eligible for the exemption under
16-13 Subsection (a)(2), (a)(4), or (a)(5);
16-14 (B) piping through which the product or an
16-15 intermediate or preliminary product that will become an ingredient
16-16 or component part of the product is recycled or circulated in a
16-17 loop between the single item of manufacturing equipment and the
16-18 ancillary equipment that supports only that single item of
16-19 manufacturing equipment if the single item of manufacturing
16-20 equipment and the ancillary equipment operate together to perform a
16-21 specific step in the manufacturing process; and
16-22 (C) piping through which the product or an
16-23 intermediate or preliminary product that will become an ingredient
16-24 or component part of the product is recycled back to another single
16-25 item of manufacturing equipment and its ancillary equipment in the
16-26 same manufacturing process [remains eligible for the exemption];
17-1 (2) [maintenance or janitorial supplies or equipment
17-2 or other machinery, equipment, materials, or supplies that are used
17-3 incidentally in a manufacturing, processing, or fabrication
17-4 operation;]
17-5 [(3)] hand tools;
17-6 (3) maintenance supplies not otherwise exempted under
17-7 this section, maintenance equipment, janitorial supplies or
17-8 equipment, [(4)] office equipment or supplies, equipment or
17-9 supplies used in sales or distribution activities, research or
17-10 development of new products, or transportation activities[, or
17-11 other tangible personal property not used in an actual
17-12 manufacturing, processing, or fabrication operation]; [or]
17-13 (4) [(5)] machinery and equipment or supplies to the
17-14 extent not otherwise exempted under this section used to maintain
17-15 or store tangible personal property; or
17-16 (5) tangible personal property used in the
17-17 transmission or distribution of electricity, including
17-18 transformers, cable, switches, breakers, capacitor banks,
17-19 regulators, relays, reclosers, fuses, interruptors, reactors,
17-20 arrestors, resistors, insulators, instrument transformers, and
17-21 telemetry units not otherwise exempted under this section, and
17-22 lines, conduit, towers, and poles.
17-23 (f) For purposes of Subsection (c)(1), piping through which
17-24 material is transported forward from one single item of
17-25 manufacturing equipment and its ancillary support equipment to
17-26 another single item of manufacturing equipment and its ancillary
18-1 support equipment is not considered a component part of a single
18-2 item of manufacturing equipment and is not exempt. An integrated
18-3 group of manufacturing and processing machines and ancillary
18-4 equipment that operate together to create or produce the product or
18-5 an intermediate or preliminary product that will become an
18-6 ingredient or component part of the product is not a single item of
18-7 manufacturing equipment.
18-8 (o) The production of a publication for the dissemination of
18-9 news of a general character and of a general interest that is
18-10 printed on newsprint and distributed to the general public free of
18-11 charge at a daily, weekly, or other short interval is considered
18-12 "manufacturing" for purposes of [Subsections (d)-(m) of] this
18-13 section.
18-14 (q) For purposes of Subsection (b), "semiconductor
18-15 fabrication cleanrooms and equipment" means all tangible personal
18-16 property, without regard to whether the property is affixed to or
18-17 incorporated into realty, used in connection with the
18-18 manufacturing, processing, or fabrication in a cleanroom
18-19 environment of a semiconductor product, without regard to whether
18-20 the property is actually contained in the cleanroom environment.
18-21 The term includes integrated systems, fixtures, and piping, all
18-22 property necessary or adapted to reduce contamination or to control
18-23 airflow, temperature, humidity, chemical purity, or other
18-24 environmental conditions or manufacturing tolerances, and
18-25 production equipment and machinery. The term does not include the
18-26 building or a permanent, nonremovable component of the building,
19-1 that houses the cleanroom environment. The term includes moveable
19-2 cleanroom partitions and cleanroom lighting. "Semiconductor
19-3 fabrication cleanrooms and equipment" are not "intraplant
19-4 ["interplant] transportation equipment" [or "used incidentally in a
19-5 manufacturing, processing, or fabrication operation"] as that term
19-6 is [those terms are] used in Subsection [Subsections] (c)(1) [and
19-7 (c)(2)].
19-8 (s) The following do not apply to the semiconductor
19-9 fabrication cleanrooms and equipment in Subsection (q):
19-10 (1) limitations in Subsection (a)(2) that refer to
19-11 tangible personal property directly causing chemical and physical
19-12 changes to the product being manufactured, processed, or fabricated
19-13 for ultimate sale;
19-14 (2) Subsection (c)(1); and
19-15 (3) Subsection (c)(4)[(5)].
19-16 (t) In addition to the other items exempted under this
19-17 section, pre-press machinery, equipment, and supplies, including
19-18 computers, cameras, film, film developing chemicals, veloxes,
19-19 plate-making machinery, plate metal, litho negatives, color
19-20 separation negatives, proofs of color negatives, production art
19-21 work, and typesetting or composition proofs, that are necessary and
19-22 essential to and used in connection with the printing process are
19-23 exempted from the tax imposed by this chapter if they are purchased
19-24 by a person engaged in:
19-25 (1) printing or imprinting tangible personal property
19-26 for sale; or
20-1 (2) producing a publication for the dissemination of
20-2 news of a general character and of a general interest that is
20-3 printed on newsprint and distributed to the general public free of
20-4 charge at a daily, weekly, or other short interval.
20-5 SECTION 17. Subchapter H, Chapter 151, Tax Code, is amended
20-6 by adding Section 151.3185 to read as follows:
20-7 Sec. 151.3185. PROPERTY USED IN THE PRODUCTION OF MOTION
20-8 PICTURES OR VIDEO OR AUDIO RECORDINGS AND BROADCASTS. (a) The
20-9 sale, lease, or rental or storage, use, or other consumption of the
20-10 following items are exempted from the taxes imposed by this
20-11 chapter:
20-12 (1) tangible personal property that will become an
20-13 ingredient or component part of:
20-14 (A) a motion picture or video or audio
20-15 recording, a copy of which is sold or offered for ultimate sale,
20-16 licensed, distributed, broadcast, or otherwise exhibited; or
20-17 (B) a broadcast by a producer of cable programs
20-18 or by a radio or television station licensed by the Federal
20-19 Communications Commission;
20-20 (2) tangible personal property that is necessary or
20-21 essential to and used or consumed in or during:
20-22 (A) the production of a motion picture or video
20-23 or audio recording, a copy of which is sold or offered for ultimate
20-24 sale, licensed, distributed, broadcast, or otherwise exhibited; or
20-25 (B) the production of a broadcast by or for a
20-26 cable program producer or by or for a radio or television station
21-1 licensed by the Federal Communications Commission; and
21-2 (3) except as provided by Subsection (c), services
21-3 that are necessary and essential to and used directly in a
21-4 production described by Subdivision (2)(A) or (B).
21-5 (b) The exemption includes:
21-6 (1) cameras, film, and film developing chemicals that
21-7 are necessary and essential to and used or consumed in a production
21-8 described by Subsection (a)(2)(A) or (B);
21-9 (2) lights, props, sets, teleprompters, microphones,
21-10 digital equipment, special effects equipment and supplies, and
21-11 other equipment that is necessary and essential to and used or
21-12 consumed directly in a production described by Subsection (a)(2)(A)
21-13 or (B); and
21-14 (3) audio or video routing switchers located in a
21-15 studio that are necessary and essential to and used or consumed
21-16 directly in a production described by Subsection (a)(2)(A) or (B).
21-17 (c) The exemption does not include:
21-18 (1) office equipment or supplies;
21-19 (2) maintenance or janitorial equipment or supplies;
21-20 (3) machinery, equipment, or supplies used in sales,
21-21 transmission, or transportation activities;
21-22 (4) machinery, equipment, or supplies used in
21-23 distribution activities, unless otherwise exempted by this section;
21-24 (5) taxable items that are used incidentally in a
21-25 production described by Subsection (a)(2)(A) or (B); or
21-26 (6) the following taxable items, regardless of whether
22-1 they are used incidentally in a production described by Subsection
22-2 (a)(2)(A) or (B):
22-3 (A) telecommunications equipment and services;
22-4 (B) transmission equipment;
22-5 (C) security services;
22-6 (D) motor vehicle parking services; and
22-7 (E) food ready for immediate consumption.
22-8 (d) A production described by Subsection (a)(2)(A) or (B)
22-9 does not include a production for broadcast that is not intended to
22-10 be broadcast to either the general public or to cable television
22-11 service subscribers or paying customers.
22-12 SECTION 18. Subsection (a), Section 151.321, Tax Code, is
22-13 amended to read as follows:
22-14 (a) A taxable item sold by a qualified student organization
22-15 and for which the sales price is $5,000 or less, is exempted from
22-16 the taxes imposed by Subchapter C, except that a taxable item
22-17 manufactured by or donated to the organization is exempt from the
22-18 taxes imposed by Subchapter C regardless of sales price unless sold
22-19 to the donor, if the student organization:
22-20 (1) sells the item at a sale that may last for one day
22-21 only and the primary purpose of which is to raise funds for the
22-22 organization; and
22-23 (2) holds not more than one sale described by
22-24 Subdivision (1) each month for which an exemption is claimed for an
22-25 item sold.
22-26 SECTION 19. Subsection (d), Section 151.350, Tax Code, is
23-1 amended to read as follows:
23-2 (d) In this section, "restore" means:
23-3 (1) launder, [or] clean, repair, treat, or apply
23-4 protective chemicals to an item, to the extent the service is a
23-5 personal service as defined in Section 151.0045; and
23-6 (2) repair, restore, or remodel, to the extent the
23-7 service is:
23-8 (A) a real property repair or remodeling service
23-9 as defined in Section 151.0047; or
23-10 (B) defined as a taxable service in Section
23-11 151.0101(a)(5) [151.0101(5)].
23-12 SECTION 20. Subchapter H, Chapter 151, Tax Code, is amended
23-13 by adding Section 151.354 to read as follows:
23-14 Sec. 151.354. SERVICES BY EMPLOYEES OF PROPERTY MANAGEMENT
23-15 COMPANIES. (a) There are exempted from the taxes imposed by this
23-16 chapter services performed by an employee of a property management
23-17 company if:
23-18 (1) the employee is permanently assigned to one rental
23-19 property by the property management company;
23-20 (2) the property management company is reimbursed on a
23-21 dollar-for-dollar basis for the services provided; and
23-22 (3) the employee remains assigned to that property
23-23 while employed by successive owners or management companies.
23-24 (b) This exemption does not apply to services performed by
23-25 an employee for properties other than the one to which the employee
23-26 is permanently assigned.
24-1 (c) For purposes of this section, a person is an employee of
24-2 a property management company if either the property management
24-3 company or an affiliate of the property management company employs
24-4 the person.
24-5 (d) The property management company must:
24-6 (1) be contractually obligated to the property owner
24-7 to exercise control over the activities of the employee providing
24-8 the service; and
24-9 (2) manage and direct the employee's day-to-day
24-10 activities.
24-11 (e) The property management company or the affiliate must
24-12 pay tax on the taxable items purchased and provided to employees
24-13 providing services on managed property.
24-14 (f) In this section, "property management company" means a
24-15 person:
24-16 (1) who, for consideration, operates and manages all
24-17 the activities at a property held by the owner for purposes of
24-18 rental, including an office building, mall, or other retail or
24-19 office complex, an apartment complex, a duplex, or a home; and
24-20 (2) whose responsibilities include securing tenants,
24-21 hiring, and supervising employees for operation or upkeep of the
24-22 property, receiving and applying revenues, and incurring and paying
24-23 expenses derived from the operation of the property as directed by
24-24 the owner.
24-25 (g) In this section, a corporation, limited liability
24-26 company, partnership, trust, or estate is an affiliate of the
25-1 property management company if an 80 percent ownership interest in
25-2 the property management company or the corporation, limited
25-3 liability company, partnership, trust, or estate is held by the
25-4 other, or if a third person has an 80 percent ownership interest
25-5 either directly or indirectly in both the property management
25-6 company and the corporation, limited liability company,
25-7 partnership, trust, or estate.
25-8 SECTION 21. Section 151.426, Tax Code, is amended by
25-9 amending Subsection (c) and adding Subsections (e), (f), (g), (h),
25-10 (i), and (j) to read as follows:
25-11 (c) Subject to Subsection (e), a [A] retailer or any person
25-12 who extends credit to a purchaser under a retailer's private label
25-13 credit agreement, or an assignee or affiliate of either, is
25-14 entitled to credit or reimbursement for taxes paid on the portion
25-15 of:
25-16 (1) an account determined to be worthless and actually
25-17 charged off for federal income tax purposes; or
25-18 (2) the remaining unpaid sales price of a taxable item
25-19 when the item is repossessed under a conditional sales contract.
25-20 (e) A person is entitled to a credit or reimbursement
25-21 provided by Subsection (c) only if:
25-22 (1) the retailer:
25-23 (A) has a valid sales or use tax permit; and
25-24 (B) remits the tax for which the credit or
25-25 reimbursement is sought;
25-26 (2) all payments on an account are prorated between
26-1 taxable and nontaxable charges; and
26-2 (3) the retailer or person claiming the credit or
26-3 reimbursement provides detailed records outlining:
26-4 (A) the amount the purchaser contracted to pay;
26-5 (B) taxable and nontaxable charges;
26-6 (C) the tax collected and remitted;
26-7 (D) the unpaid portion of the sales price
26-8 assigned; and
26-9 (E) the taxpayer number of the seller who
26-10 collected and remitted the tax.
26-11 (f) A person whose volume and character of uncollectible
26-12 accounts warrants an alternative method of substantiating the
26-13 reimbursement or credit may:
26-14 (1) maintain records other than the records specified
26-15 in Subsection (e) if:
26-16 (A) the records fairly and equitably apportion
26-17 taxable and nontaxable elements of a bad debt and compute the
26-18 amount of sales tax imposed and remitted with respect to the
26-19 taxable charges remaining unpaid on the debt; and
26-20 (B) the comptroller approves the procedures
26-21 used; or
26-22 (2) implement a system to report its future tax
26-23 responsibilities based on a historical percentage calculated from a
26-24 sample of transactions if:
26-25 (A) the system utilizes records provided by the
26-26 person claiming the credit or reimbursement; and
27-1 (B) the comptroller approves the procedures
27-2 used.
27-3 (g) The comptroller may revoke the authorization to report
27-4 under Subsection (f)(2) if the comptroller determines that the
27-5 percentage being used is no longer representative because of:
27-6 (1) a change in law, including a change in the
27-7 interpretation of an existing law or rule; or
27-8 (2) a change in the taxpayer's business operations.
27-9 (h) A person claiming a credit or reimbursement under this
27-10 section shall remit tax on any payments received on an account that
27-11 has been written off and claimed as a bad debt.
27-12 (i) A person who is not a retailer may claim a credit or
27-13 reimbursement authorized by Subsection (c) only for taxes imposed
27-14 by Section 151.051 or 151.101.
27-15 (j) For purposes of this section, "affiliate" means any
27-16 entity or entities that would be classified as a member of an
27-17 affiliated group under 26 U.S.C. Section 1504.
27-18 SECTION 22. Subsections (d) and (g), Section 151.429, Tax
27-19 Code, are amended to read as follows:
27-20 (d) To receive a refund under this section, an enterprise
27-21 project must apply to the comptroller for the refund. The Texas
27-22 Department of Economic Development [department of commerce] shall
27-23 provide the comptroller with the assistance that the comptroller
27-24 requires in administering this section.
27-25 (g) The refund provided by this section is conditioned on
27-26 the enterprise project maintaining at least the same level of
28-1 employment of qualified employees as existed at the time it
28-2 qualified for a refund for a period of three years from that date.
28-3 The Texas Department of Economic Development [Commerce] shall
28-4 annually certify to the comptroller and the Legislative Budget
28-5 Board whether that level of employment of qualified employees has
28-6 been maintained. On the Texas Department of Economic Development
28-7 [Commerce] certifying that such a level has not been maintained,
28-8 the comptroller shall assess that portion of the refund
28-9 attributable to any such decrease in employment, including penalty
28-10 and interest from the date of the refund.
28-11 SECTION 23. Subdivision (1), Subsection (e), Section
28-12 151.429, Tax Code, is amended to read as follows:
28-13 (1) "Enterprise project" means a person designated by
28-14 the Texas Department of Economic Development [Commerce] as an
28-15 enterprise project under Chapter 2303, Government Code.
28-16 SECTION 24. Subsections (d) and (g), Section 151.4291, Tax
28-17 Code, are amended to read as follows:
28-18 (d) To receive a refund under this section, a defense
28-19 readjustment project must apply to the comptroller for the refund.
28-20 The Texas Department of Economic Development [Commerce] shall
28-21 provide the comptroller with the assistance that the comptroller
28-22 requires in administering this section.
28-23 (g) The refund provided by this section is conditioned on
28-24 the defense readjustment project maintaining at least the same
28-25 level of employment of qualified employees as existed at the time
28-26 it qualified for a refund for a period of three years from that
29-1 date. The Texas Department of Economic Development [Commerce]
29-2 shall annually certify to the comptroller and the Legislative
29-3 Budget Board whether that level of employment of qualified
29-4 employees has been maintained. On the Texas Department of Economic
29-5 Development [Commerce] certifying that such a level has not been
29-6 maintained, the comptroller shall assess that portion of the refund
29-7 attributable to any such decrease in employment, including penalty
29-8 and interest from the date of the refund.
29-9 SECTION 25. Subdivision (1), Subsection (e), Section
29-10 151.4291, Tax Code, is amended to read as follows:
29-11 (1) "Defense readjustment project" means a person
29-12 designated by the Texas Department of Economic Development
29-13 [Commerce] as a defense readjustment project under Chapter 2310,
29-14 Government Code.
29-15 SECTION 26. Subsection (a), Section 151.431, Tax Code, is
29-16 amended to read as follows:
29-17 (a) A qualified business operating in the enterprise zone's
29-18 jurisdiction for at least three consecutive years may apply for and
29-19 be granted a onetime refund of sales and use tax paid by the
29-20 qualified business after certification of the qualified business as
29-21 provided by Subsection (b) of this section to a vendor or directly
29-22 to the state for the purchase of equipment or machinery sold to the
29-23 business for use in an enterprise zone if the governing body or
29-24 bodies certify to the Texas Department of Economic Development
29-25 [Commerce] that the business is retaining 10 or more jobs held by
29-26 qualified employees during the year. For the purposes of this
30-1 subsection "job" means an existing employment position of a
30-2 qualified business that has provided employment to a qualified
30-3 employee of at least 1,820 hours annually.
30-4 SECTION 27. Section 152.002, Tax Code, is amended by adding
30-5 Subsection (d) to read as follows:
30-6 (d) A person who holds a lessor license under the Texas
30-7 Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
30-8 Civil Statutes) or is specifically not required to obtain a lessor
30-9 license under Section 4.01(a) of that Act may deduct the fair
30-10 market value of a replaced motor vehicle that has been leased for
30-11 longer than 180 days and is titled to another person if:
30-12 (1) either person:
30-13 (A) holds a beneficial ownership interest in the
30-14 other person of at least 80 percent; or
30-15 (B) acquires all of its vehicles exclusively
30-16 from franchised dealers whose franchisor shares common ownership
30-17 with the other person; and
30-18 (2) the replaced motor vehicle is offered for sale.
30-19 SECTION 28. Section 152.041, Tax Code, is amended by adding
30-20 Subsection (e) to read as follows:
30-21 (e) If a motor vehicle title applicant has paid the tax to
30-22 the seller who is required by this chapter to collect the tax and
30-23 the seller has failed to remit the tax to the county tax
30-24 assessor-collector, the tax assessor-collector may accept
30-25 application for title to the motor vehicle without the payment of
30-26 additional tax by the applicant. Before title to the motor vehicle
31-1 may be issued under these circumstances, the motor vehicle title
31-2 applicant must present satisfactory documentation to the tax
31-3 assessor-collector that the tax was paid. The county tax
31-4 assessor-collector shall notify the comptroller in writing of the
31-5 seller's failure to remit the tax. The notice must:
31-6 (1) be made before the 31st day after the date the
31-7 application for title is accepted;
31-8 (2) contain the name and address of the seller; and
31-9 (3) include any documentation of the payment of the
31-10 tax provided to the county tax assessor-collector by the motor
31-11 vehicle title applicant.
31-12 SECTION 29. Subsections (a), (b), (d), and (h), Section
31-13 153.117, Tax Code, are amended to read as follows:
31-14 (a) A distributor shall keep a record showing the number of
31-15 gallons of:
31-16 (1) all gasoline inventories on hand at the first of
31-17 each month;
31-18 (2) all gasoline refined, compounded, or blended;
31-19 (3) all gasoline purchased or received, showing the
31-20 name of the seller and date of each purchase or receipt;
31-21 (4) all gasoline sold, distributed, or used, showing
31-22 the name of the purchaser and the date of the sale or use; and
31-23 (5) all gasoline lost by fire, theft, or [other]
31-24 accident.
31-25 (b) A dealer shall keep a record showing the number of
31-26 gallons of:
32-1 (1) gasoline inventories on hand at the first of each
32-2 month;
32-3 (2) all gasoline purchased or received, showing the
32-4 name of the seller and the date of each purchase or receipt;
32-5 (3) all gasoline sold or used, showing the date of the
32-6 sale or use; and
32-7 (4) all gasoline lost by fire, theft, or [other]
32-8 accident.
32-9 (d) An aviation fuel dealer shall keep a record showing the
32-10 number of gallons of:
32-11 (1) all gasoline inventories on hand at the first of
32-12 each month;
32-13 (2) all gasoline purchased or received, showing the
32-14 name of the seller and date of each purchase or receipt;
32-15 (3) all gasoline sold or used in aircraft or aircraft
32-16 servicing equipment; and
32-17 (4) all gasoline lost by fire, theft, or [other]
32-18 accident.
32-19 (h) A gasoline jobber shall keep a record showing the number
32-20 of gallons of:
32-21 (1) all gasoline inventories on hand at the first of
32-22 each month;
32-23 (2) all gasoline purchased or received, showing the
32-24 name of the seller and date of each purchase or receipt;
32-25 (3) all gasoline sold, distributed, or used, showing
32-26 the name of the purchaser and the date of the sale or use; and
33-1 (4) all gasoline lost by fire, theft, or [other]
33-2 accident.
33-3 SECTION 30. Subsections (a) and (e), Section 153.119, Tax
33-4 Code, are amended to read as follows:
33-5 (a) A person who exports, sells to the federal government,
33-6 to a public school district in this state, or to a commercial
33-7 transportation company for exclusive use in providing public school
33-8 transportation services to a school district under Section 34.008,
33-9 Education Code, without having added the amount of the tax imposed
33-10 by this chapter to his selling price, loses by fire, theft, or
33-11 [other] accident, or uses gasoline for the purpose of operating or
33-12 propelling a motorboat, tractor used for agricultural purposes, or
33-13 stationary engine, or for another purpose except in a vehicle
33-14 operated or intended to be operated on the public highways of this
33-15 state, and who has paid the tax imposed on gasoline by this chapter
33-16 either directly or indirectly is, when the person has complied with
33-17 the invoice and filing provisions of this section and the rules of
33-18 the comptroller, entitled to reimbursement of the tax paid by him,
33-19 less a filing fee and any amount allowed distributors[, wholesalers
33-20 or jobbers, dealers, or others] under Section 153.105(e)
33-21 [153.105(c)] of this code. A public school district that has paid
33-22 the tax imposed under this chapter on gasoline used by the district
33-23 or a commercial transportation company that has paid the tax
33-24 imposed under this chapter on gasoline used by the company
33-25 exclusively to provide public school transportation services to a
33-26 school district under Section 34.008, Education Code, is entitled
34-1 to reimbursement of the amount of the tax paid in the same manner
34-2 and subject to the same procedures as other exempted users.
34-3 (e) A person who exports or loses by fire, theft, or [other]
34-4 accident 100 or more gallons of gasoline on which the tax has been
34-5 paid, or sells gasoline in any quantity to the United States
34-6 government for the exclusive use of that government on which the
34-7 tax has been paid, may file a claim for a refund of the net tax
34-8 paid to the state in the manner provided by this chapter or as the
34-9 comptroller may direct.
34-10 SECTION 31. Subsection (a), Section 153.121, Tax Code, is
34-11 amended to read as follows:
34-12 (a) Except as provided by this section, a claim for a refund
34-13 must be filed with the comptroller within one year after the first
34-14 day of the calendar month following the purchase, use, delivery,
34-15 export, or loss by fire, theft, or [other] accident of gasoline,
34-16 whichever period expires latest.
34-17 SECTION 32. Section 153.206, Tax Code, is amended by adding
34-18 Subsection (j) to read as follows:
34-19 (j) In each subsequent sale of diesel fuel on which the tax
34-20 has been collected, the amount of the tax shall be added to the
34-21 selling price so that the tax is paid ultimately by the person
34-22 using or consuming the diesel fuel for the purpose of propelling a
34-23 vehicle on the public highways of this state.
34-24 SECTION 33. Subsections (a), (b), (c), (d), and (i), Section
34-25 153.219, Tax Code, are amended to read as follows:
34-26 (a) A supplier shall keep a record showing the number of
35-1 gallons of:
35-2 (1) all diesel fuel inventories on hand at the first
35-3 of each month;
35-4 (2) all diesel fuel refined, compounded, or blended;
35-5 (3) all diesel fuel purchased or received, showing the
35-6 name of the seller, and the date of each purchase or receipt;
35-7 (4) all diesel fuel sold, distributed, or used showing
35-8 the name of the purchaser and the date of sale, distribution, or
35-9 use; and
35-10 (5) all diesel fuel lost by fire, theft, or [other]
35-11 accident.
35-12 (b) A dealer shall keep a record showing the number of
35-13 gallons of:
35-14 (1) all diesel fuel inventories on hand at the first
35-15 of each month;
35-16 (2) all diesel fuel purchased or received, showing the
35-17 name of the seller, the date of each purchase or receipt;
35-18 (3) all diesel fuel sold, distributed, or used; and
35-19 (4) all diesel fuel lost by fire, theft, or [other]
35-20 accident.
35-21 (c) A bonded user or other user with nonhighway equipment
35-22 uses who files a claim for a refund shall keep a record showing the
35-23 number of gallons of:
35-24 (1) inventories of all diesel fuel on hand at the
35-25 first of each month;
35-26 (2) all diesel fuel purchased or received, showing the
36-1 name of the seller and the date of each purchase;
36-2 (3) all diesel fuel deliveries into the fuel supply
36-3 tanks of motor vehicles;
36-4 (4) diesel fuel used for other purposes, showing the
36-5 purpose for which used; and
36-6 (5) all diesel fuel lost by fire, theft, or [other]
36-7 accident.
36-8 (d) An aviation fuel dealer shall keep a record showing the
36-9 number of gallons of:
36-10 (1) all diesel fuel inventories on hand at the first
36-11 of each month;
36-12 (2) all diesel fuel purchased or received, showing the
36-13 name of the seller and the date of each purchase or receipt;
36-14 (3) all diesel fuel sold, distributed, or used in
36-15 aircraft or aircraft servicing equipment; and
36-16 (4) diesel fuel lost by fire, theft, or [other]
36-17 accident.
36-18 (i) A diesel fuel jobber shall keep a record showing the
36-19 number of gallons of:
36-20 (1) all diesel fuel inventories on hand at the first
36-21 of each month;
36-22 (2) all diesel fuel purchased or received, showing the
36-23 name of the seller and date of each purchase or receipt;
36-24 (3) all diesel fuel sold, distributed, or used,
36-25 showing the name of the purchaser and the date of the sale or use;
36-26 and
37-1 (4) all diesel fuel lost by fire, theft, or [other]
37-2 accident.
37-3 SECTION 34. Subsection (e), Section 153.222, Tax Code, is
37-4 amended to read as follows:
37-5 (e) A person who exports or loses by fire, theft, or [other]
37-6 accident 100 or more gallons of diesel fuel on which the tax has
37-7 been paid, or who sells diesel fuel in any quantity to the United
37-8 States for its exclusive use on which the tax has been paid, may
37-9 file a claim for a refund of the net tax paid to the state as the
37-10 comptroller may direct.
37-11 SECTION 35. Subsection (a), Section 153.224, Tax Code, is
37-12 amended to read as follows:
37-13 (a) Except as provided by this section, a claim for a refund
37-14 must be filed with the comptroller within one year after the first
37-15 day of the calendar month following the purchase, use, delivery,
37-16 export, or loss by fire, theft, or [other] accident of diesel fuel,
37-17 whichever period expires latest.
37-18 SECTION 36. Subsections (c) and (g), Section 154.114, Tax
37-19 Code, are amended to read as follows:
37-20 (c) The comptroller shall deliver [mail] the written notice
37-21 by personal service or by [certified] mail[, return receipt
37-22 requested,] to the permit holder's mailing address as it appears on
37-23 the comptroller's records. Service by mail is complete when the
37-24 notice is deposited with [received, as evidenced by return receipt
37-25 from] the U.S. Postal Service.
37-26 (g) If the comptroller suspends or revokes a permit, the
38-1 comptroller shall provide written notice of the suspension or
38-2 revocation, within a reasonable time, to each distributor and
38-3 wholesaler permit holder in the state. A distributor or wholesaler
38-4 permit holder violates Section 154.1015(a) by selling or
38-5 distributing cigarettes to a person whose permit has been suspended
38-6 or revoked only after the distributor or wholesaler permit holder
38-7 receives written notice of the suspension or revocation from the
38-8 comptroller.
38-9 SECTION 37. Subsection (a), Section 154.210, Tax Code, is
38-10 amended to read as follows:
38-11 (a) A distributor shall deliver to the comptroller, on or
38-12 before the last [15th] day of each month, a report for the
38-13 preceding month.
38-14 SECTION 38. Subsection (b), Section 154.308, Tax Code, is
38-15 amended to read as follows:
38-16 (b) On making a deficiency determination, the comptroller
38-17 shall notify the person by [certified] mail or personal service[,
38-18 return receipt requested]. Service by mail is complete when the
38-19 notice is deposited with [received, as evidenced by return receipt
38-20 from] the U.S. Postal Service.
38-21 SECTION 39. Subsections (b) and (d), Section 154.309, Tax
38-22 Code, are amended to read as follows:
38-23 (b) A written request for redetermination must be filed at
38-24 the office of the comptroller not later than the 30th [15th
38-25 working] day after the date notice of deficiency is issued
38-26 [received]. If a written request for redetermination is not filed
39-1 as required by this subsection, the determination is final.
39-2 (d) The comptroller shall give notice of a redetermination
39-3 hearing by personal service or by [certified] mail[, return receipt
39-4 requested]. Service by mail is complete when the notice is
39-5 deposited with [received, as evidenced by return receipt from] the
39-6 U.S. Postal Service.
39-7 SECTION 40. Subsection (c), Section 155.059, Tax Code, is
39-8 amended to read as follows:
39-9 (c) The comptroller shall deliver [mail] the written notice
39-10 by personal service or by [certified] mail[, return receipt
39-11 requested,] to the permit holder's mailing address as it appears in
39-12 the comptroller's records. Service by mail is complete when the
39-13 notice is deposited with [received, as evidenced by the return
39-14 receipt from] the United States Postal Service.
39-15 SECTION 41. Subsection (b), Section 155.103, Tax Code, is
39-16 amended to read as follows:
39-17 (b) A manufacturer who sells tobacco products to a permit
39-18 holder in this state shall file with the comptroller, on or before
39-19 the last [15th] day of each month, a report showing the information
39-20 listed in Subsection (a) for the previous month.
39-21 SECTION 42. Subsection (a), Section 155.111, Tax Code, is
39-22 amended to read as follows:
39-23 (a) A distributor shall file with the comptroller on or
39-24 before the last [30th] day of each month, a report for the
39-25 preceding month.
39-26 SECTION 43. Subsection (b), Section 155.185, Tax Code, is
40-1 amended to read as follows:
40-2 (b) On making a deficiency determination, the comptroller
40-3 shall notify the person by personal service or by [certified]
40-4 mail[, return receipt requested]. Service by mail is complete when
40-5 the notice is deposited with [received, as evidenced by return
40-6 receipt from] the U.S. Postal Service.
40-7 SECTION 44. Subsections (b) and (d), Section 155.186, Tax
40-8 Code, are amended to read as follows:
40-9 (b) A written request for redetermination must be filed at
40-10 the office of the comptroller not later than the 30th [15th
40-11 working] day after the date notice of deficiency is issued
40-12 [received]. If a written request for redetermination is not filed
40-13 as required by this subsection, the determination is final.
40-14 (d) The comptroller shall give notice of a redetermination
40-15 hearing by personal service or by [certified] mail[, return receipt
40-16 requested]. Service by mail is complete when the notice is
40-17 deposited with [received, as evidenced by return receipt from] the
40-18 U.S. Postal Service.
40-19 SECTION 45. Section 156.102, Tax Code, is amended to read as
40-20 follows:
40-21 Sec. 156.102. EXCEPTION--RELIGIOUS, CHARITABLE, OR
40-22 EDUCATIONAL ORGANIZATION. (a) This chapter does not impose a tax
40-23 on a corporation or association that is organized and operated
40-24 exclusively for a religious, charitable, or educational purpose if
40-25 no part of the net earnings of the corporation or association inure
40-26 to the benefit of a private shareholder or individual.
41-1 (b) For purposes of this section, an institution of higher
41-2 education is organized and operated exclusively for an educational
41-3 purpose only if the institution is defined as an institution of
41-4 higher education under any subdivision of Section 61.003, Education
41-5 Code.
41-6 SECTION 46. Subsections (a), (b), (c), and (d), Section
41-7 156.103, Tax Code, are amended to read as follows:
41-8 (a) This [Subject to this section, this] chapter does not
41-9 impose a tax on:
41-10 (1) the United States;
41-11 (2) a governmental entity of the United States[, this
41-12 state, or an agency, institution, board, or commission of this
41-13 state other than an institution of higher education;]
41-14 [(2) an officer or employee of a state governmental
41-15 entity described by Subdivision (1) when traveling on or otherwise
41-16 engaged in the course of official duties for the governmental
41-17 entity]; or
41-18 (3) an officer or employee of a governmental entity of
41-19 the United States when traveling on or otherwise engaged in the
41-20 course of official duties for the governmental entity [if the
41-21 governmental entity directly pays to the hotel the price for the
41-22 room].
41-23 (b) This state, or an agency, institution, board, or
41-24 commission of this state other than an institution of higher
41-25 education [A governmental entity otherwise excepted under this
41-26 section] shall pay the tax imposed by this chapter and is entitled
42-1 to a refund of the amount of tax paid in accordance with Section
42-2 156.154.
42-3 (c) A state officer or employee of a state governmental
42-4 entity described by Subsection (b) [(a)(2)] who is entitled to
42-5 reimbursement for the cost of lodging and for whom a special
42-6 provision or exception to the general rate of reimbursement under
42-7 the General Appropriations Act is not applicable shall pay the tax
42-8 imposed by [under] this chapter [as if it were imposed by this
42-9 chapter]. The state governmental entity with whom the person is
42-10 associated is entitled under Section 156.154 to a refund of the tax
42-11 paid.
42-12 (d) A state officer or employee of a state governmental
42-13 entity described by Subsection (b) [(a)(2)] for whom a special
42-14 provision or exception to the general rate of reimbursement under
42-15 the General Appropriations Act applies and who is provided with
42-16 photo identification verifying the identity and exempt status of
42-17 the person is not required to pay the tax and is not entitled to a
42-18 refund. The photo identification of a state officer or employee
42-19 described by this section may be modified for the purposes of this
42-20 section.
42-21 SECTION 47. Section 171.063, Tax Code, is amended by
42-22 amending Subsection (a) and adding Subsection (h) to read as
42-23 follows:
42-24 (a) The following corporations are exempt from the franchise
42-25 tax:
42-26 (1) a nonprofit corporation exempted from the federal
43-1 income tax under Section 501(c)(3), (4), (5), (6), (7), (8), (10),
43-2 or (19), Internal Revenue Code which in the case of a nonprofit
43-3 hospital means a hospital providing community benefits that include
43-4 charity care and government-sponsored indigent health care
43-5 [community benefits] as set forth in Subchapter D, Chapter 311,
43-6 Health and Safety Code; [Paragraph (A), (B), (C), (D), (E), (F), or
43-7 (G):]
43-8 [(A) charity care and government-sponsored
43-9 indigent health care are provided at a level which is reasonable in
43-10 relation to the community needs, as determined through the
43-11 community needs assessment, the available resources of the hospital
43-12 or hospital system, and the tax-exempt benefits received by the
43-13 hospital or hospital system;]
43-14 [(B) charity care and government-sponsored
43-15 indigent health care are provided in an amount equal to at least
43-16 four percent of the hospital's or hospital system's net patient
43-17 revenue;]
43-18 [(C) charity care and government-sponsored
43-19 indigent health care are provided in an amount equal to at least
43-20 100 percent of the hospital's or hospital system's tax-exempt
43-21 benefits, excluding federal income tax;]
43-22 [(D) for tax periods beginning before January 1,
43-23 1996, charity care and community benefits are provided in a
43-24 combined amount equal to at least five percent of the hospital's
43-25 net patient revenue, provided that charity care and
43-26 government-sponsored indigent health care are provided in an amount
44-1 equal to at least three percent of net patient revenue;]
44-2 [(E) for tax periods beginning after December
44-3 31, 1995, charity care and community benefits are provided in a
44-4 combined amount equal to at least five percent of the hospital's or
44-5 hospital system's net patient revenue, provided that charity care
44-6 and government-sponsored indigent health care are provided in an
44-7 amount equal to at least four percent of net patient revenue;]
44-8 [(F) a nonprofit hospital that has been
44-9 designated as a disproportionate share hospital under the state
44-10 Medicaid program in the current year or in either of the previous
44-11 two fiscal years is considered to have provided a reasonable amount
44-12 of charity care and government-sponsored indigent health care and
44-13 is considered in compliance with the standards provided by this
44-14 subsection; or]
44-15 [(G) a hospital operated on a nonprofit basis
44-16 that is located in a county with a population of less than 50,000
44-17 and in which the entire county or the population of the entire
44-18 county has been designated as a health professionals shortage area
44-19 is considered in compliance with the standards provided by this
44-20 subsection;]
44-21 (2) a corporation exempted under Section 501(c)(2) or
44-22 (25), Internal Revenue Code, if the corporation or corporations for
44-23 which it holds title to property is either exempt from or not
44-24 subject to the franchise tax; and
44-25 (3) a corporation exempted from federal income tax
44-26 under Section 501(c)(16), Internal Revenue Code[; and]
45-1 [(4) a nonprofit corporation exempted from the federal
45-2 income tax under Section 501(c)(3), Internal Revenue Code, that
45-3 does not receive any payment for providing health care services to
45-4 inpatients or outpatients from any source including but not limited
45-5 to the patient or person legally obligated to support the patient,
45-6 third-party payors, Medicare, Medicaid, or any other state or local
45-7 indigent care program. Payment for providing health care services
45-8 does not include charitable donations, legacies, bequests, or
45-9 grants or payments for research.]
45-10 [For purposes of satisfying Paragraph (E) of Subdivision (1),
45-11 a hospital or hospital system may not change its existing fiscal
45-12 year unless the hospital or hospital system changes its ownership
45-13 or corporate structure as a result of a sale or merger.]
45-14 [For purposes of this subsection, a hospital that satisfies
45-15 Paragraph (A), (F), or (G) of Subdivision (1) shall be excluded in
45-16 determining a hospital system's compliance with the standards
45-17 provided by Paragraph (B), (C), (D), or (E) of Subdivision (1).]
45-18 [For purposes of this subsection, the terms "charity care,"
45-19 "government-sponsored indigent health care," "health care
45-20 organization," "hospital system," "net patient revenue," "nonprofit
45-21 hospital," and "tax-exempt benefits" have the meanings set forth in
45-22 Sections 311.031 and 311.042, Health and Safety Code. A
45-23 determination of the amount of community benefits and charity care
45-24 and government-sponsored indigent health care provided by a
45-25 hospital or hospital system and the hospital's or hospital system's
45-26 compliance with the requirements of Section 311.045, Health and
46-1 Safety Code, shall be based on the most recently completed and
46-2 audited prior fiscal year of the hospital or hospital system.]
46-3 [A requirement that a nonprofit hospital provide charity care
46-4 and community benefits under this subsection may be satisfied by a
46-5 donation of money to the Texas Healthy Kids Corporation established
46-6 by Chapter 109, Health and Safety Code, provided that:]
46-7 [(1) the money is donated to be used for a purpose
46-8 described by Section 109.033(c), Health and Safety Code; and]
46-9 [(2) not more than 10 percent of the charity care
46-10 required under any provision of this subsection may be satisfied by
46-11 the donation.]
46-12 [The providing of charity care and government-sponsored
46-13 indigent health care in accordance with Paragraph (A) of
46-14 Subdivision (1) shall be guided by the prudent business judgment of
46-15 the hospital which will ultimately determine the appropriate level
46-16 of charity care and government-sponsored indigent health care based
46-17 on the community needs, the available resources of the hospital,
46-18 the tax-exempt benefits received by the hospital, and other factors
46-19 that may be unique to the hospital, such as the hospital's volume
46-20 of Medicare and Medicaid patients. These criteria shall not be
46-21 determinative factors, but shall be guidelines contributing to the
46-22 hospital's decision along with other factors which may be unique to
46-23 the hospital. The formulas contained in Paragraphs (B), (C), (D),
46-24 and (E) of Subdivision (1) shall also not be considered
46-25 determinative of a reasonable amount of charity care and
46-26 government-sponsored indigent health care.]
47-1 [The requirements of this subsection shall not apply to the
47-2 extent a hospital or hospital system demonstrates that reductions
47-3 in the amount of community benefits, charity care, and
47-4 government-sponsored indigent health care are necessary to maintain
47-5 financial reserves at a level required by a bond covenant, are
47-6 necessary to prevent the hospital or hospital system from
47-7 endangering its ability to continue operations, or if the hospital,
47-8 as a result of a natural or other disaster, is required
47-9 substantially to curtail its operations.]
47-10 [In any fiscal year that a hospital or hospital system,
47-11 through unintended miscalculation, fails to meet any of the
47-12 standards in Subdivision (1), the hospital or hospital system shall
47-13 not lose its tax-exempt status without the opportunity to cure the
47-14 miscalculation in the fiscal year following the fiscal year the
47-15 failure is discovered by both meeting one of the standards and
47-16 providing an additional amount of charity care and
47-17 government-sponsored indigent health care that is equal to the
47-18 shortfall from the previous fiscal year. A hospital or hospital
47-19 system may apply this provision only once every five years].
47-20 (h) A requirement that a nonprofit hospital provide charity
47-21 care and community benefits under Subsection (a)(1) may be
47-22 satisfied by a donation of money to the Texas Healthy Kids
47-23 Corporation established by Chapter 109, Health and Safety Code, if:
47-24 (1) the money is donated to be used for a purpose
47-25 described by Section 109.033(c), Health and Safety Code; and
47-26 (2) not more than 10 percent of the charity care
48-1 required under any provision of Section 311.045, Health and Safety
48-2 Code, may be satisfied by the donation.
48-3 SECTION 48. Subsections (c) and (d), Section 171.063, Tax
48-4 Code, are amended to read as follows:
48-5 (c) A corporation's exemption under Subsection (b) of this
48-6 section is established by furnishing the comptroller with a copy of
48-7 the Internal Revenue Service's letter of exemption issued to the
48-8 corporation. [The copy of the letter must be filed with the
48-9 comptroller within 15 months after the day that is the last day of
48-10 a calendar month and that is nearest to the date of the
48-11 corporation's charter or certificate of authority.]
48-12 (d) If the Internal Revenue Service has not timely issued to
48-13 a corporation a letter of exemption, evidence establishing the
48-14 corporation's provisional exemption under this section is
48-15 sufficient if the corporation timely files with the comptroller
48-16 [within the 15-month period established by Subsection (c) of this
48-17 section] evidence that the corporation has applied in good faith
48-18 for the federal tax exemption. The evidence must be filed not
48-19 later than the 15th month after the day that is the last day of a
48-20 calendar month and that is nearest to the date of the corporation's
48-21 charter or certificate of authority.
48-22 SECTION 49. The heading of Subchapter C, Chapter 171, Tax
48-23 Code, is amended to read as follows:
48-24 SUBCHAPTER C. DETERMINATION OF TAXABLE CAPITAL
48-25 AND TAXABLE EARNED SURPLUS; ALLOCATION AND APPORTIONMENT
48-26 SECTION 50. The heading of Section 171.1015, Tax Code, is
49-1 amended to read as follows:
49-2 Sec. 171.1015. REDUCTION OF TAXABLE CAPITAL OR TAXABLE
49-3 EARNED SURPLUS FOR INVESTMENT IN AN ENTERPRISE ZONE.
49-4 SECTION 51. Subdivision (1), Subsection (f), Section
49-5 171.1015, Tax Code, is amended to read as follows:
49-6 (1) "Enterprise project" means a person designated by
49-7 the Texas Department of Economic Development [Commerce] as an
49-8 enterprise project under Chapter 2303, Government Code.
49-9 SECTION 52. Subsection (g), Section 171.1015, Tax Code, is
49-10 amended to read as follows:
49-11 (g) Only qualified businesses that have been certified as
49-12 eligible for a tax deduction under this section by the Texas
49-13 Department of Economic Development [Commerce] to the comptroller
49-14 and the Legislative Budget Board are entitled to the tax deduction.
49-15 SECTION 53. The heading of Section 171.1016, Tax Code, is
49-16 amended to read as follows:
49-17 Sec. 171.1016. REDUCTION OF TAXABLE CAPITAL OR TAXABLE
49-18 EARNED SURPLUS FOR INVESTMENT IN A READJUSTMENT ZONE.
49-19 SECTION 54. Subdivision (1), Subsection (f), Section
49-20 171.1016, Tax Code, is amended to read as follows:
49-21 (1) "Defense readjustment project" means a person
49-22 designated by the Texas Department of Economic Development
49-23 [Commerce] as a defense readjustment project under Chapter 2310,
49-24 Government Code.
49-25 SECTION 55. Subsection (g), Section 171.1016, Tax Code, is
49-26 amended to read as follows:
50-1 (g) Only qualified businesses that have been certified as
50-2 eligible for a tax deduction under this section by the Texas
50-3 Department of Economic Development [Commerce] to the comptroller
50-4 and the Legislative Budget Board are entitled to the tax deduction.
50-5 SECTION 56. The heading of Section 171.107, Tax Code, is
50-6 amended to read as follows:
50-7 Sec. 171.107. DEDUCTION OF COST OF SOLAR ENERGY DEVICE FROM
50-8 TAXABLE CAPITAL OR TAXABLE EARNED SURPLUS APPORTIONED TO THIS
50-9 STATE.
50-10 SECTION 57. Section 171.110, Tax Code, is amended by adding
50-11 Subsections (i) and (j) to read as follows:
50-12 (i) For purposes of this section, any person designated as
50-13 an officer is presumed to be an officer if that person:
50-14 (1) holds an office created by the board of directors
50-15 or under the corporate charter or bylaws; and
50-16 (2) has legal authority to bind the corporation with
50-17 third parties by executing contracts or other legal documents.
50-18 (j) A corporation may rebut the presumption described in
50-19 Subsection (i) that a person is an officer if it conclusively
50-20 shows, through the person's job description or other documentation,
50-21 that the person does not participate or have authority to
50-22 participate in significant policymaking aspects of the corporate
50-23 operations.
50-24 SECTION 58. Subsection (a), Section 171.501, Tax Code, is
50-25 amended to read as follows:
50-26 (a) A corporation that has been certified a qualified
51-1 business as provided by Chapter 2303, Government Code may apply for
51-2 and be granted a refund of franchise tax paid with an initial or
51-3 annual report if the governing body or bodies certify to the Texas
51-4 Department of Economic Development [Commerce] that the business has
51-5 created 10 or more new jobs in its enterprise zone held by
51-6 qualified employees during the calendar year that contains the end
51-7 of the accounting period on which the report is based. The Texas
51-8 Department of Economic Development [Commerce] shall certify
51-9 eligibility for any refund to the comptroller.
51-10 SECTION 59. The heading of Subchapter C, Chapter 183, Tax
51-11 Code, is amended to read as follows:
51-12 SUBCHAPTER C. MIXED BEVERAGE TAX CLEARANCE [FUND]
51-13 SECTION 60. The heading of Section 183.051, Tax Code, is
51-14 amended to read as follows:
51-15 Sec. 183.051. MIXED BEVERAGE TAX CLEARANCE [FUND].
51-16 SECTION 61. Subsection (b), Section 183.051, Tax Code, is
51-17 amended to read as follows:
51-18 (b) The comptroller shall issue to each county described in
51-19 Subsection (a) a warrant drawn on the general revenue [mixed
51-20 beverage tax clearance] fund in an [the] amount appropriated by the
51-21 legislature that may not be greater than [of] 10.7143 percent of
51-22 receipts from permittees within the county during the quarter and
51-23 shall issue to each incorporated municipality described in
51-24 Subsection (a) a warrant drawn on that fund in an [the] amount
51-25 appropriated by the legislature that may not be greater than [of]
51-26 10.7143 percent of receipts from permittees within the incorporated
52-1 municipality during the quarter. [The remainder of the receipts
52-2 for the quarter and all interest earned on that fund shall be
52-3 transferred to the general revenue fund.]
52-4 SECTION 62. Subsection (b), Section 191.085, Tax Code, is
52-5 amended to read as follows:
52-6 (b) The person shall keep the record open for four [two]
52-7 years for inspection by the comptroller or the attorney general.
52-8 SECTION 63. Subsection (a), Section 203.051, Tax Code, is
52-9 amended to read as follows:
52-10 (a) A producer shall keep a complete record of all sulphur
52-11 he produces in this state. A producer may destroy a record
52-12 required by this section four [three] years after the last entry in
52-13 the record.
52-14 SECTION 64. Section 321.102, Tax Code, is amended by adding
52-15 Subsections (e), (f), and (g) to read as follows:
52-16 (e) If as a result of the imposition or increase in a sales
52-17 and use tax by a municipality in which there is located all or part
52-18 of a local governmental entity that has adopted a sales and use tax
52-19 or as a result of the annexation by a municipality of all or part
52-20 of the territory in a local governmental entity that has adopted a
52-21 sales and use tax the overlapping local sales and use taxes in the
52-22 area will exceed two percent, the entity's sales and use tax is
52-23 automatically reduced in that area to a rate that when added to the
52-24 combined rate of local sales and use taxes will equal two percent.
52-25 (f) If an entity's rate is reduced in accordance with
52-26 Subsection (e), the comptroller shall withhold from the
53-1 municipality's monthly sales and use tax allocation an amount equal
53-2 to the amount that would have been collected by the entity had the
53-3 municipality not imposed or increased its sales and use tax or
53-4 annexed the area in the entity less amounts that the entity
53-5 collects following the municipality's levy of or increase in its
53-6 sales and use tax or annexation of the area in the entity. The
53-7 comptroller shall withhold and pay the amount withheld to the
53-8 entity under policies or procedures that the comptroller considers
53-9 reasonable.
53-10 (g) A transit authority is not a local governmental entity
53-11 for the purposes of Subsections (e) and (f).
53-12 SECTION 65. Section 322.302, Tax Code, is amended to read as
53-13 follows:
53-14 Sec. 322.302. DISTRIBUTION OF TRUST FUNDS. At [(a) Except
53-15 as provided by Subsection (b) of this section, at] least quarterly
53-16 [twice] during each state fiscal year and as often as feasible, the
53-17 comptroller shall send to the person at each taxing entity who
53-18 performs the function of entity treasurer, payable to the taxing
53-19 entity, the entity's share of the taxes collected by the
53-20 comptroller under this chapter.
53-21 [(b) The comptroller shall make payments required by
53-22 Subsection (a) of this section to entities created under Chapter
53-23 451 or 452, Transportation Code, quarterly each fiscal year as soon
53-24 as practicable after the end of each quarter.]
53-25 SECTION 66. Subsection (c), Section 323.102, Tax Code, is
53-26 amended to read as follows:
54-1 (c) A tax imposed under Section 323.105 of this code or
54-2 Chapter 326, Local Government Code, takes effect on the first day
54-3 of the first calendar quarter after the expiration of the first
54-4 complete calendar quarter occurring after the date on which the
54-5 comptroller receives a notice of the action as required by Section
54-6 323.405(b).
54-7 SECTION 67. Subsection (e), Section 323.105, Tax Code, is
54-8 amended to read as follows:
54-9 (e) The comptroller shall remit to the county amounts
54-10 collected at the rate imposed under this section as part of the
54-11 regular allocation of county tax revenue collected by the
54-12 comptroller if the district is composed of the entire county. The
54-13 comptroller [county] shall, if the district is composed of an area
54-14 less than the entire county, remit that amount to the district.
54-15 Retailers may not be required to use the allocation and reporting
54-16 procedures in the collection of taxes under this section different
54-17 from the procedures that retailers use in the collection of other
54-18 sales and use taxes under this chapter. An item, transaction, or
54-19 service that is taxable in a county under a sales or use tax
54-20 authorized by another section of this chapter is taxable under this
54-21 section. An item, transaction, or service that is not taxable in a
54-22 county under a sales or use tax authorized by another section of
54-23 this chapter is not taxable under this section.
54-24 SECTION 68. Section 351.006, Tax Code, is amended to read as
54-25 follows:
54-26 Sec. 351.006. EXEMPTION. (a) A United States governmental
55-1 entity described in Section 156.103(a) is exempt from the payment
55-2 of tax authorized by this chapter [excepted from the tax imposed
55-3 by Chapter 156 under Section 156.103(a)(1) or (a)(3) shall pay the
55-4 tax imposed by this chapter but is entitled to a refund of the tax
55-5 paid].
55-6 (b) A state governmental entity described in Section
55-7 156.103(b) shall pay the tax imposed by this chapter but is
55-8 entitled to a refund of the tax paid.
55-9 (c) A person who is described by Section 156.103(d) is
55-10 exempt from the payment of the tax authorized by this chapter.
55-11 (d) [(c)] A person who is described by Section 156.103(c)
55-12 shall pay the tax imposed by this chapter but the state
55-13 governmental entity with whom the person is associated is entitled
55-14 to a refund of the tax paid.
55-15 (e) [(d)] To receive a refund of tax paid under this
55-16 chapter, the governmental entity entitled to the refund must file a
55-17 refund claim on a form provided by the municipality and containing
55-18 the information required by the municipality. The comptroller by
55-19 rule shall prescribe the form that must be used and the information
55-20 that must be provided.
55-21 (f) [(e)] A governmental entity may file a refund claim with
55-22 the municipality under this chapter only for each calendar quarter
55-23 for all reimbursements accrued during that quarter. The
55-24 municipality may adopt an ordinance to enforce this section.
55-25 SECTION 69. Section 352.007, Tax Code, is amended to read as
55-26 follows:
56-1 Sec. 352.007. EXEMPTION. (a) A United States governmental
56-2 entity described in Section 156.103(a) is exempt from the payment
56-3 of tax authorized by this chapter [excepted from the tax imposed by
56-4 Chapter 156 under Section 156.103(a)(1) or (a)(3) shall pay the tax
56-5 imposed by this chapter but is entitled to a refund of the tax
56-6 paid].
56-7 (b) A state governmental entity subject to the tax imposed
56-8 by Chapter 156 under Section 156.103(b) shall pay the tax imposed
56-9 by this chapter but is entitled to a refund of the tax paid.
56-10 (c) A person who is described by Section 156.103(d) is
56-11 exempt from the payment of the tax authorized by this chapter.
56-12 (d) [(c)] A person who is described by Section 156.103(c)
56-13 shall pay the tax imposed by this chapter but the state
56-14 governmental entity with whom the person is associated is entitled
56-15 to a refund of the tax paid.
56-16 (e) [(d)] To receive a refund of a tax paid under this
56-17 chapter, the governmental entity entitled to the refund must file a
56-18 refund claim on a form provided by the county and containing the
56-19 information required by the county. The comptroller by rule shall
56-20 prescribe the form that must be used and the information that must
56-21 be provided.
56-22 (f) [(e)] A governmental entity may file a refund claim with
56-23 the county under this chapter only for each calendar quarter for
56-24 all reimbursements accrued during that quarter. The county may
56-25 adopt a resolution to enforce this section.
56-26 SECTION 70. Subsection (e), Section 4B, Development
57-1 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
57-2 Statutes), as amended by Section 3, Chapter 1022, and Section 12,
57-3 Chapter 1031, Acts of the 73rd Legislature, Regular Session, 1993,
57-4 is reenacted to read as follows:
57-5 (e) The rate of a tax adopted under this section must be
57-6 one-eighth, one-fourth, three-eighths, or one-half of one percent.
57-7 The ballot proposition at the election held to adopt the tax must
57-8 specify the rate of the tax to be adopted. A corporation that
57-9 holds an election to reduce a tax imposed under Section 4A of this
57-10 Act may in a separate proposition on the same ballot adopt a tax
57-11 under this section. If an eligible city adopts the tax, a tax is
57-12 imposed on the receipts from the sale at retail of taxable items
57-13 within the eligible city at the rate approved at the election.
57-14 There is also imposed an excise tax on the use, storage, or other
57-15 consumption within the eligible city of tangible personal property
57-16 purchased, leased, or rented from a retailer during the period that
57-17 the tax is effective within the eligible city. The rate of the
57-18 excise tax is the same as the rate of the sales tax portion of the
57-19 tax and is applied to the sale price of the tangible personal
57-20 property.
57-21 SECTION 71. The following provisions of the Tax Code are
57-22 repealed:
57-23 (1) Subsection (g), Section 151.318;
57-24 (2) Subsection (p), Section 151.318; and
57-25 (3) Subsection (d), Section 152.062.
57-26 SECTION 72. A tax to which Section 66 of this Act applies
58-1 that is not being collected on the effective date of this Act and
58-2 that was adopted at an election held before January 1, 1999, takes
58-3 effect on the first day of the first calendar quarter that begins
58-4 after the effective date of this Act.
58-5 SECTION 73. Each change in law made to the following
58-6 provisions by this Act is a clarification of existing law and does
58-7 not imply that existing law may be construed as inconsistent with
58-8 the law as amended by this Act:
58-9 (1) Section 102.075, Code of Criminal Procedure;
58-10 (2) Section 9, Texas State College and University
58-11 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
58-12 Texas Insurance Code);
58-13 (3) Section 11, Texas Public School Employees Group
58-14 Insurance Act (Article 3.50-4, Insurance Code);
58-15 (4) Section 326.029, Local Government Code;
58-16 (5) Section 326.092, Local Government Code;
58-17 (6) Section 151.318, Tax Code;
58-18 (7) Section 151.3185, Tax Code;
58-19 (8) Subsection (d), Section 151.350, Tax Code;
58-20 (9) Section 152.002, Tax Code;
58-21 (10) Section 152.041, Tax Code;
58-22 (11) Section 153.117, Tax Code;
58-23 (12) Section 153.119, Tax Code;
58-24 (13) Section 153.206, Tax Code;
58-25 (14) Section 153.219, Tax Code;
58-26 (15) Section 171.063, Tax Code;
59-1 (16) the heading of Subchapter C, Chapter 171, Tax
59-2 Code;
59-3 (17) the headings of Sections 171.1015, 171.1016, and
59-4 171.107, Tax Code;
59-5 (18) Section 171.110, Tax Code;
59-6 (19) Section 191.085, Tax Code; and
59-7 (20) Section 203.051, Tax Code.
59-8 SECTION 74. The comptroller of public accounts may adopt
59-9 rules and take other actions before October 1, 1999, as the
59-10 comptroller deems necessary or advisable to prepare for the taking
59-11 effect of this Act.
59-12 SECTION 75. (a) Except as provided by Subsections (b), (c),
59-13 and (d) of this section, this Act takes effect October 1, 1999.
59-14 (b) Section 3 of this Act takes effect January 1, 2000, and
59-15 applies to reporting periods beginning on or after that date.
59-16 (c) Sections 47 through 58 of this Act take effect January
59-17 1, 2000, and apply to a report originally due on or after that
59-18 date.
59-19 (d) Sections 64, 66, 72, and 74 of this Act take effect on
59-20 the earliest date on which they may take effect under Section 39,
59-21 Article III, Texas Constitution.
59-22 SECTION 76. The importance of this legislation and the
59-23 crowded condition of the calendars in both houses create an
59-24 emergency and an imperative public necessity that the
59-25 constitutional rule requiring bills to be read on three several
59-26 days in each house be suspended, and this rule is hereby suspended,
60-1 and that this Act take effect and be in force according to its
60-2 terms, and it is so enacted.
60-3 COMMITTEE AMENDMENT NO. 1
60-4 Amend S.B. No. 1488 as follows:
60-5 In an appropriate place, add the following two new SECTIONS,
60-6 appropriately numbered, to read as follows:
60-7 SECTION ____. Subsection (b), Section 403.014, Government
60-8 Code, is amended to read as follows:
60-9 (b) The report must include:
60-10 (1) an analysis of each special provision that reduces
60-11 the amount of tax payable, to include an estimate of the loss of
60-12 revenue for a six-year period including the current fiscal biennium
60-13 and a citation of the statutory or legal authority for the
60-14 provision; and
60-15 (2) for provisions reducing revenue by more than one
60-16 percent of total revenue for a tax covered by this section:
60-17 (A) [,] the effect of each provision on the
60-18 distribution of the tax burden by income class and industry or
60-19 business class, as appropriate; and
60-20 (B) the effect of each provision on total income
60-21 by income class.
60-22 SECTION ____. Subsection (c), Section 403.0141, Government
60-23 Code, is amended to read as follows:
60-24 (c) To the extent data is available, the incidence impact
60-25 analysis under Subsections (a) and (b):
60-26 (1) shall evaluate the tax burden:
61-1 (A) on the overall income distribution, using a
61-2 systemwide incidence measure or other appropriate measures of
61-3 equality and inequality; and
61-4 (B) on income classes, including, at a minimum,
61-5 quintiles of the income distribution, on renters and homeowners, on
61-6 industry or business classes, as appropriate, and on various types
61-7 of business organizations;
61-8 (2) may evaluate the tax burden:
61-9 (A) by other appropriate taxpayer
61-10 characteristics, such as whether the taxpayer is a farmer, rancher,
61-11 retired elderly, or resident or nonresident of the state; and
61-12 (B) by distribution of impact on consumers,
61-13 labor, capital, and out-of-state persons and entities; [and]
61-14 (3) shall evaluate the effect of each tax on total
61-15 income by income group; and
61-16 (4) shall:
61-17 (A) use the broadest measure of economic income
61-18 for which reliable data is available; and
61-19 (B) include a statement of the incidence
61-20 assumptions that were used in making the analysis.
61-21 Craddick
61-22 COMMITTEE AMENDMENT NO. 2
61-23 Amend S.B. No. 1488 by inserting the following SECTION and
61-24 appropriately renumbering all subsequent SECTIONS:
61-25 SECTION ____. Section 151.317, Tax Code, is amended to read
61-26 as follows:
62-1 Sec. 151.317. GAS AND ELECTRICITY. (a) Subject to
62-2 Subsection (d), gas [Gas] and electricity are exempted from the
62-3 taxes imposed by this chapter [except] when sold for:
62-4 (1) residential use;
62-5 (2) use in powering equipment exempt under Section
62-6 151.318 by a person processing tangible personal property for sale
62-7 as tangible personal property, other than preparation or storage of
62-8 food for immediate consumption;
62-9 (3) use in lighting, cooling, and heating in the
62-10 manufacturing area during the actual manufacturing or processing of
62-11 tangible personal property for sale as tangible personal property,
62-12 other than preparation or storage of food for immediate
62-13 consumption;
62-14 (4) use directly in exploring for, producing, or
62-15 transporting, a material extracted from the earth;
62-16 (5) use in agriculture, including dairy or poultry
62-17 operations and pumping for farm or ranch irrigation;
62-18 (6) use directly in electrical processes, such as
62-19 electroplating, electrolysis, and cathodic protection;
62-20 (7) use directly in the off-wing processing, overhaul,
62-21 or repair of a jet turbine engine or its parts for a certificated
62-22 or licensed carrier of persons or property;
62-23 (8) use directly in providing, under contracts with or
62-24 on behalf of the United States government or foreign governments,
62-25 defense or national security-related electronics, classified
62-26 intelligence data processing and handling systems, or
63-1 defense-related platform modifications or upgrades; or
63-2 (9) a direct or indirect use, consumption, or loss of
63-3 electricity by an electric utility engaged in the purchase of
63-4 electricity for resale [commercial use].
63-5 (b) The sale, production, distribution, lease, or rental of,
63-6 and the use, storage, or other consumption in this state of, gas
63-7 and electricity sold for the uses listed in Subsection (a), [except
63-8 when sold for residential or commercial use,] are exempted from the
63-9 taxes imposed by a municipality [city] under Chapter 321 except
63-10 [the Local Sales and Use Tax Act, unless sales for residential use
63-11 are further exempted by the city] as provided by Section 321.105
63-12 [the Local Sales and Use Tax Act].
63-13 (c) In this section, "residential [:]
63-14 [(1) "Residential] use" means use:
63-15 (1) [(A)] in a family dwelling or in a multifamily
63-16 apartment or housing complex or building or in a part of a building
63-17 occupied as a home or residence when the use is by the owner of the
63-18 dwelling, apartment, complex, or building or part of the building
63-19 occupied; or
63-20 (2) [(B)] in a dwelling, apartment, house, or building
63-21 or part of a building occupied as a home or residence when the use
63-22 is by a tenant who occupies the dwelling, apartment, house, or
63-23 building or part of a building under a contract for an express
63-24 initial term for longer than 29 consecutive days.
63-25 [(2) "Commercial use" means use by a person engaged in
63-26 selling, warehousing, or distributing a commodity or a professional
64-1 or personal service, but does not include:]
64-2 [(A) use by a person engaged in:]
64-3 [(i) processing tangible personal property
64-4 for sale as tangible personal property, other than preparation or
64-5 storage of food for immediate consumption;]
64-6 [(ii) exploring for, producing, or
64-7 transporting, a material extracted from the earth;]
64-8 [(iii) agriculture, including dairy or
64-9 poultry operations and pumping for farm or ranch irrigation;]
64-10 [(iv) electrical processes such as
64-11 electroplating, electrolysis, and cathodic protection;]
64-12 [(v) the off-wing processing, overhaul, or
64-13 repair of a jet turbine engine or its parts for a certificated or
64-14 licensed carrier of persons or property; or]
64-15 [(vi) providing, under contracts with or
64-16 on behalf of the United States government or foreign governments,
64-17 defense or national security-related electronics, classified
64-18 intelligence data processing and handling systems, or
64-19 defense-related platform modifications or upgrades; or]
64-20 [(B) a direct or indirect use, consumption, or
64-21 loss of electricity by an electric utility engaged in the purchase
64-22 of electricity for resale.]
64-23 (d) Gas and electricity qualifies for the exemptions in
64-24 Subsections (a)(2)-(8) only if it is sold to the person using the
64-25 gas and electricity in the exempt manner.
64-26 76R15464 DAK-F Craddick
65-1 COMMITTEE AMENDMENT NO. 3
65-2 Amend S.B. No. 1488 (Engrossed Version) as follows:
65-3 (1) On page 54, between lines 23 and 24, insert a new
65-4 SECTION of the bill, appropriately numbered, to read as follows:
65-5 SECTION ____. Section 351.001, Tax Code, is amended by
65-6 adding Subdivision (10) to read as follows:
65-7 (10) "Revenue" includes any interest derived from the
65-8 revenue.
65-9 (2) On page 55, between lines 24 and 25, insert a new
65-10 SECTION of the bill, appropriately numbered, to read as follows:
65-11 SECTION ____. Subchapter B, Chapter 351, Tax Code, is
65-12 amended by adding Section 351.107 to read as follows:
65-13 Sec. 351.107. RECORDS. A municipality shall maintain a
65-14 record that accurately identifies the receipt and expenditure of
65-15 all revenue derived from the tax imposed under this chapter.
65-16 (3) On page 59, between lines 21 and 22, insert a new
65-17 SECTION of the bill, appropriately numbered, to read as follows:
65-18 SECTION ____. Section 351.107, Tax Code, as added by this
65-19 Act, applies only to an expenditure made on or after the effective
65-20 date of this Act, without regard to whether the expenditure is from
65-21 revenue collected under Chapter 351, Tax Code, before, on, or after
65-22 that date. An expenditure made before the effective date of this
65-23 Act is governed by the law applicable to the action immediately
65-24 before the effective date of this Act, and that law is continued in
65-25 effect for that purpose.
65-26 Ramsay