1-1 By: Armbrister S.B. No. 1488
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Finance; April 22, 1999,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 11, Nays 0; April 22, 1999, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1488 By: Moncrief
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to technical changes to statutes involving taxes or fees
1-10 administered by the comptroller of public accounts.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (g), Article 102.075, Code of Criminal
1-13 Procedure, is amended to read as follows:
1-14 (g) A municipality or county may retain 10 percent of the
1-15 money collected under this article as a service fee for the
1-16 collection if the municipality or county remits the funds to the
1-17 comptroller within the period prescribed in Subsection (f). The
1-18 municipality or county may retain any interest accrued on the money
1-19 if the custodian of the money deposited in the treasury keeps
1-20 records of the amount of money collected under this article that is
1-21 on deposit in the treasury and remits the funds to the comptroller
1-22 within the period prescribed in Subsection (f).
1-23 SECTION 2. Subsection (b), Section 12, Article 1.14-1,
1-24 Insurance Code, is amended to read as follows:
1-25 (b) The report shall be filed and any tax due shall be paid
1-26 by the insured or by any other person designated by the insured.
1-27 The report and tax are due on or before May 15 [March 1] of the
1-28 calendar year after the calendar year in which the insurance was
1-29 procured, continued, or renewed or on another date prescribed by
1-30 the comptroller.
1-31 SECTION 3. Subsections (a) and (b), Section 12, Article
1-32 1.14-2, Insurance Code, are amended to read as follows:
1-33 (a) The premiums charged for surplus lines insurance are
1-34 subject to a premium receipts tax of 4.85 percent of gross premiums
1-35 charged for such insurance. The term premium includes all
1-36 premiums, membership fees, assessments, dues or any other
1-37 consideration for insurance. Such tax shall be in lieu of all
1-38 other insurance taxes. The surplus lines agent shall collect from
1-39 the insured the amount of the tax at the time of delivery of the
1-40 cover note, certificate of insurance, policy or other initial
1-41 confirmation of insurance, in addition to the full amount of the
1-42 gross premium charged by the insurer for the insurance. No agent
1-43 shall absorb such tax nor shall any agent, as an inducement for
1-44 insurance or for any other reason, rebate all or any part of such
1-45 tax or his commission. The surplus lines agent shall file a report
1-46 and pay taxes to the comptroller on or before March 1 of each year
1-47 on forms prescribed by the comptroller. The [the] amount of taxes
1-48 shall be based on gross premiums written or received for such
1-49 insurance placed through an eligible surplus lines insurer during
1-50 the calendar year ending on the preceding December 31. A tax
1-51 prepayment shall be required any time accrued taxes due equal or
1-52 exceed $70,000. The prepayment of the accrued taxes, with a form
1-53 prescribed by the comptroller, shall be due by the 15th day of the
1-54 month following the month in which accrued taxes total $70,000 [and
1-55 shall pay to the comptroller the tax as provided for by this
1-56 Article]. If a surplus lines policy covers risks or exposures only
1-57 partially in this state, the tax payable shall be computed on the
1-58 portions of the premium which are properly allocated to the risks
1-59 or exposures located in this state. In determining the amount of
1-60 premiums taxable in this state, all premiums written, procured, or
1-61 received in this state and all premiums on policies negotiated in
1-62 this state shall be deemed written on property or risks located or
1-63 resident in this state, except such premiums as are properly
1-64 allocated or apportioned and reported as premiums which may be
2-1 subject to taxation by any other state or states. Premiums that
2-2 are properly allocated to any other state or states that are
2-3 specifically exempt from taxation under the regulations of that
2-4 state or states are not taxable in this state. Premiums on risks
2-5 or exposures which are properly allocated to federal waters,
2-6 international waters or under the jurisdiction of a foreign
2-7 government shall not be taxable by this state. In event of
2-8 cancellation and rewriting of any surplus lines insurance contract
2-9 the additional premium for premium receipts tax purposes shall be
2-10 the premium in excess of the unearned premium of the canceled
2-11 insurance contract.
2-12 (b) All surplus lines premium receipt taxes collected by a
2-13 surplus lines agent are trust funds in his hands [and the property
2-14 of this state. Such funds shall be maintained by the surplus lines
2-15 agent in a separate account and shall not be mingled with any other
2-16 funds, either business or private]. Any surplus lines agent who
2-17 fails or refuses to pay over to the state the surplus lines premium
2-18 receipts tax at the time required by [in] this section, or who
2-19 fraudulently withholds or appropriates or otherwise uses such money
2-20 or any portions thereof belonging to the state is guilty of theft
2-21 and shall be punished as provided by law for the crime of theft,
2-22 irrespective of whether any such surplus lines agent has or claims
2-23 to have any interest in such money so received by him.
2-24 SECTION 4. Subsection (b), Section 9, Texas State College
2-25 and University Employees Uniform Insurance Benefits Act (Article
2-26 3.50-3, Vernon's Texas Insurance Code), is amended to read as
2-27 follows:
2-28 (b) Premiums on policies, insurance contracts, or agreements
2-29 with health maintenance organizations established under this Act
2-30 are not subject to any state tax, regulatory fee, or surcharge,
2-31 including premium or maintenance taxes or fees.
2-32 SECTION 5. Subsection (b), Section 11, Texas Public School
2-33 Employees Group Insurance Act (Article 3.50-4, Insurance Code), is
2-34 amended to read as follows:
2-35 (b) A premium or contribution on a policy, insurance
2-36 contract, or agreement authorized as provided by this article is
2-37 not subject to any state tax, regulatory fee, or surcharge,
2-38 including premium or maintenance taxes or fees.
2-39 SECTION 6. Subsection (a), Section 326.029, Local Government
2-40 Code, is amended to read as follows:
2-41 (a) If a majority of the votes received in the election
2-42 favor the creation of the district and the adoption of the sales
2-43 and use tax, the commissioners court shall by resolution or order
2-44 declare that the district is created and shall declare the amount
2-45 of the local sales and use tax adopted and enter the result in its
2-46 minutes.
2-47 SECTION 7. Subsection (a), Section 326.092, Local Government
2-48 Code, is amended to read as follows:
2-49 (a) Chapter 323, Tax Code, to the extent not inconsistent
2-50 with this chapter, governs the imposition, computation,
2-51 administration, and governance of the tax under this subchapter,
2-52 except that Sections 323.101, 323.105, [and] 323.404, and 323.406
2-53 through 323.408, Tax Code, do not apply.
2-54 SECTION 8. Section 101.003, Tax Code, is amended by adding
2-55 Subdivision (13) to read as follows:
2-56 (13) "Tax" means a tax, fee, assessment, charge, or
2-57 other amount that the comptroller is authorized to administer.
2-58 SECTION 9. Subsection (b), Section 111.0041, Tax Code, is
2-59 amended to read as follows:
2-60 (b) This section prevails over any other conflicting
2-61 provision of this title [except Section 191.024(b) of this code].
2-62 SECTION 10. Section 111.023, Tax Code, is amended to read as
2-63 follows:
2-64 Sec. 111.023. WRITTEN AUTHORIZATION. (a) The comptroller
2-65 may require that a report, return, declaration, claim for refund,
2-66 or other document that is required or permitted to be filed with
2-67 the comptroller and that is submitted by an attorney, accountant,
2-68 or other representative of a taxpayer [person] on behalf of the
2-69 taxpayer [person] be accompanied by express written authorization
3-1 of the taxpayer [person] in whose name or on whose behalf it is
3-2 purportedly submitted.
3-3 (b) An officer, director, or employee of the taxpayer whose
3-4 duties include administering the taxpayer's rights and
3-5 responsibilities with the comptroller may sign the written
3-6 authorization. The authorization must include the title and
3-7 telephone number of the officer, director, or employee who signs
3-8 the authorization for verification by the comptroller.
3-9 (c) The comptroller may impose a requirement of Subsection
3-10 (b) on a taxpayer's assignment of a claim for refund.
3-11 SECTION 11. Subsection (e), Section 111.104, Tax Code, is
3-12 amended to read as follows:
3-13 (e) This section applies to all taxes and license fees
3-14 collected or administered by the comptroller, except the state
3-15 property tax [and those taxes that qualify for refund allowed under
3-16 Section 151.318(g) or (n)].
3-17 SECTION 12. Section 111.107, Tax Code, is amended to read as
3-18 follows:
3-19 Sec. 111.107. WHEN REFUND OR CREDIT IS PERMITTED. Except as
3-20 otherwise expressly provided, a person may request a refund or a
3-21 credit or the comptroller may make a refund or issue a credit for
3-22 the overpayment of a tax imposed by this title at any time before
3-23 the expiration of the period during which the comptroller may
3-24 assess a deficiency for the tax and not thereafter unless the
3-25 refund or credit is requested:
3-26 (1) under Subchapter B of Chapter 112 and the refund
3-27 is made or the credit is issued under a court order;
3-28 (2) under the provision of Section 111.104(c)(3)
3-29 applicable to a refund claim filed after a jeopardy or deficiency
3-30 determination becomes final; or
3-31 (3) under Chapter 153, except Section 153.1195(e),
3-32 153.121(d), 153.2225(e), or 153.224(d)[; or]
3-33 [(4) under Section 151.318(g) or (n)].
3-34 SECTION 13. Subsections (c) and (e), Section 151.310, Tax
3-35 Code, are amended to read as follows:
3-36 (c) An organization that qualifies for an exemption under
3-37 Subsection (a)(1) or (a)(2) of this section, and each bona fide
3-38 chapter of the organization, may hold two tax-free sales or
3-39 auctions under this subsection during a calendar year and each
3-40 tax-free sale or auction may continue for one day only. The sale
3-41 of a taxable item the sales price of which is $5,000 or less by a
3-42 qualified organization or chapter of the organization at a tax-free
3-43 sale or auction is exempted from the sales tax imposed by
3-44 Subchapter C of this chapter, except that a taxable item
3-45 manufactured by or donated to the qualified organization or chapter
3-46 of the organization may be sold tax free regardless of the sales
3-47 price to any purchaser other than the donor. The storage, use, or
3-48 consumption of a taxable item that is acquired from a qualified
3-49 organization or chapter of the organization at a tax-free sale or
3-50 auction and that is exempted under this subsection from the taxes
3-51 imposed by Subchapter C of this chapter is exempted from the use
3-52 tax imposed by Subchapter D of this chapter until the item is
3-53 resold or subsequently transferred.
3-54 (e) A nonprofit hospital or hospital system that qualifies
3-55 for an exemption under Subsection (a)(2) shall provide community
3-56 benefits that include charity care and government-sponsored
3-57 indigent health care [community benefits] as set forth in
3-58 Subchapter D, Chapter 311, Health and Safety Code. [Subdivision
3-59 (1), (2), (3), (4), (5), (6), (7), or (8) below:]
3-60 [(1) charity care and government-sponsored indigent
3-61 health care are provided at a level which is reasonable in relation
3-62 to the community needs, as determined through the community needs
3-63 assessment, the available resources of the hospital or hospital
3-64 system, and the tax-exempt benefits received by the hospital or
3-65 hospital system;]
3-66 [(2) charity care and government-sponsored indigent
3-67 health care are provided in an amount equal to at least four
3-68 percent of the hospital's or hospital system's net patient revenue;]
3-69 [(3) charity care and government-sponsored indigent
4-1 health care are provided in an amount equal to at least 100 percent
4-2 of the hospital's or hospital system's tax-exempt benefits,
4-3 excluding federal income tax;]
4-4 [(4) for tax periods beginning before January 1, 1996,
4-5 charity care and community benefits are provided in a combined
4-6 amount equal to at least five percent of the hospital's or hospital
4-7 system's net patient revenue, provided that charity care and
4-8 government-sponsored indigent health care are provided in an amount
4-9 equal to at least three percent of net patient revenue;]
4-10 [(5) for tax periods beginning after December 31,
4-11 1995, charity care and community benefits are provided in a
4-12 combined amount equal to at least five percent of the hospital's or
4-13 hospital system's net patient revenue, provided that charity care
4-14 and government-sponsored indigent health care are provided in an
4-15 amount equal to at least four percent of net patient revenue;]
4-16 [(6) a nonprofit hospital that has been designated as
4-17 a disproportionate share hospital under the state Medicaid program
4-18 in the current year or in either of the previous two fiscal years
4-19 is considered to have provided a reasonable amount of charity care
4-20 and government-sponsored indigent health care and is considered in
4-21 compliance with the standards provided by this subsection;]
4-22 [(7) a hospital operated on a nonprofit basis that is
4-23 located in a county with a population of less than 50,000 and in
4-24 which the entire county or the population of the entire county has
4-25 been designated as a health professionals shortage area is
4-26 considered to be in compliance with the standards provided by this
4-27 subsection; or]
4-28 [(8) a hospital providing health care services to
4-29 inpatients or outpatients without receiving any payment for
4-30 providing those services from any source, including the patient or
4-31 person legally obligated to support the patient, third-party
4-32 payors, Medicare, Medicaid, or any other state or local indigent
4-33 care program but excluding charitable donations, legacies,
4-34 bequests, or grants or payments for research, is considered to be
4-35 in compliance with the standards provided by this subsection.]
4-36 [For purposes of satisfying Subdivision (5), a hospital or
4-37 hospital system may not change its existing fiscal year unless the
4-38 hospital or hospital system changes its ownership or corporate
4-39 structure as a result of a sale or merger.]
4-40 [For purposes of this subsection, a hospital that satisfies
4-41 Subdivision (1), (6), (7), or (8) shall be excluded in determining
4-42 a hospital system's compliance with the standards provided by
4-43 Subdivision (2), (3), (4), or (5).]
4-44 [For purposes of this subsection, the terms "charity care,"
4-45 "government-sponsored indigent health care," "health care
4-46 organization," "hospital system," "net patient revenue," "nonprofit
4-47 hospital," and "tax-exempt benefits" have the meanings set forth in
4-48 Sections 311.031 and 311.042, Health and Safety Code. A
4-49 determination of the amount of community benefits and charity care
4-50 and government-sponsored indigent health care provided by a
4-51 hospital or hospital system and the hospital's or hospital system's
4-52 compliance with the requirements of this subsection and Section
4-53 311.045, Health and Safety Code, shall be based on the most
4-54 recently completed and audited prior fiscal year of the hospital or
4-55 hospital system.]
4-56 [The providing of charity care and government-sponsored
4-57 indigent health care in accordance with Subdivision (1) shall be
4-58 guided by the prudent business judgment of the hospital which will
4-59 ultimately determine the appropriate level of charity care and
4-60 government-sponsored indigent health care based on the community
4-61 needs, the available resources of the hospital, the tax-exempt
4-62 benefits received by the hospital, and other factors that may be
4-63 unique to the hospital, such as the hospital's volume of Medicare
4-64 and Medicaid patients. These criteria shall not be determinative
4-65 factors, but shall be guidelines contributing to the hospital's
4-66 decision along with other factors which may be unique to the
4-67 hospital. The formulas contained in Subdivisions (2), (3), (4),
4-68 and (5) shall also not be considered determinative of a reasonable
4-69 amount of charity care and government-sponsored indigent health
5-1 care.]
5-2 [The requirements of this subsection shall not apply to the
5-3 extent a hospital or hospital system demonstrates that reductions
5-4 in the amount of community benefits, charity care, and
5-5 government-sponsored indigent health care are necessary to maintain
5-6 financial reserves at a level required by a bond covenant, are
5-7 necessary to prevent the hospital or hospital system from
5-8 endangering its ability to continue operations, or if the hospital
5-9 or hospital system, as a result of a natural or other disaster, is
5-10 required substantially to curtail its operations.]
5-11 [In any fiscal year that a hospital or hospital system,
5-12 through unintended miscalculation, fails to meet any of the
5-13 standards in this subsection, the hospital or hospital system shall
5-14 not lose its tax-exempt status without the opportunity to cure the
5-15 miscalculation in the fiscal year following the fiscal year the
5-16 failure is discovered by both meeting one of the standards and
5-17 providing an additional amount of charity care and
5-18 government-sponsored indigent health care that is equal to the
5-19 shortfall from the previous fiscal year. A hospital or hospital
5-20 system may apply this provision only once every five years.]
5-21 SECTION 14. Section 151.3101, Tax Code, is amended by adding
5-22 Subsection (c) to read as follows:
5-23 (c) In this section, "educational organization" includes an
5-24 entity described by Section 61.003(8) or (15), Education Code.
5-25 SECTION 15. Section 151.312, Tax Code, is amended to read as
5-26 follows:
5-27 Sec. 151.312. PERIODICALS AND WRITINGS OF RELIGIOUS,
5-28 PHILANTHROPIC, CHARITABLE, HISTORICAL, SCIENTIFIC, AND SIMILAR
5-29 ORGANIZATIONS. Periodicals and writings, including those presented
5-30 on audio tape, videotape, and computer disk, that are published and
5-31 [or] distributed by a religious, philanthropic, charitable,
5-32 historical, scientific, or other similar organization that is not
5-33 operated for profit, but excluding an educational organization, are
5-34 exempted from the taxes imposed by this chapter.
5-35 SECTION 16. Section 151.318, Tax Code, is amended by
5-36 amending Subsections (a), (c), (o), (q), and (s), and adding
5-37 Subsections (f) and (t) to read as follows:
5-38 (a) The following items are exempted from the taxes imposed
5-39 by this chapter if sold, leased, or rented to, or stored, used, or
5-40 consumed by a manufacturer:
5-41 (1) tangible personal property that will become an
5-42 ingredient or component part of tangible personal property
5-43 manufactured, processed, or fabricated for ultimate sale;
5-44 (2) tangible personal property directly used or
5-45 consumed in or during the actual manufacturing, processing, or
5-46 fabrication of tangible personal property for ultimate sale if the
5-47 use or consumption of the property is necessary or essential to the
5-48 manufacturing, processing, or fabrication operation and directly
5-49 makes or causes a chemical or physical change to:
5-50 (A) the product being manufactured, processed,
5-51 or fabricated for ultimate sale; or
5-52 (B) any intermediate or preliminary product that
5-53 will become an ingredient or component part of the product being
5-54 manufactured, processed, or fabricated for ultimate sale;
5-55 (3) services performed directly on the product being
5-56 manufactured prior to its distribution for sale and for the purpose
5-57 of making the product more marketable;
5-58 (4) actuators, steam production equipment and its
5-59 fuel, in-process flow through tanks, cooling towers, generators,
5-60 heat exchangers, transformers and the switches, breakers, capacitor
5-61 banks, regulators, relays, reclosers, fuses, interruptors,
5-62 reactors, arrestors, resistors, insulators, instrument
5-63 transformers, and telemetry units that are related to the
5-64 transformers, electronic control room equipment, computerized
5-65 control units, pumps, compressors, and hydraulic units, that are
5-66 used to power, supply, support, or control equipment that qualifies
5-67 for exemption under Subdivision (2) or (5) or to generate
5-68 electricity, chilled water, or steam for ultimate sale;
5-69 transformers located at an electric generating facility that
6-1 increase the voltage of electricity generated for ultimate sale,
6-2 the electrical cable that carries the electricity from the electric
6-3 generating equipment to the step-up transformers, and the switches,
6-4 breakers, capacitor banks, regulators, relays, reclosers, fuses,
6-5 interruptors, reactors, arrestors, resistors, insulators,
6-6 instrument transformers, and telemetry units that are related to
6-7 the step-up transformers; and transformers that decrease the
6-8 voltage of electricity generated for ultimate sale and the
6-9 switches, breakers, capacitor banks, regulators, relays, reclosers,
6-10 fuses, interruptors, reactors, arrestors, resistors, insulators,
6-11 instrument transformers, and telemetry units that are related to
6-12 the step-down transformers; [and]
6-13 (5) tangible personal property [machinery, equipment,
6-14 and replacement parts or accessories] used or consumed in the
6-15 actual manufacturing, processing, or fabrication of tangible
6-16 personal property for ultimate sale if the [their] use or
6-17 consumption of the property is necessary and essential to a
6-18 pollution control process;
6-19 (6) lubricants, chemicals, chemical compounds, gases,
6-20 or liquids that are used or consumed during the actual
6-21 manufacturing, processing, or fabrication of tangible personal
6-22 property for ultimate sale if their use or consumption is necessary
6-23 and essential to prevent the decline, failure, lapse, or
6-24 deterioration of equipment exempted by this section;
6-25 (7) gases used on the premises of a manufacturing
6-26 plant to prevent contamination of raw material or product, or to
6-27 prevent a fire, explosion, or other hazardous or environmentally
6-28 damaging situation at any stage in the manufacturing process or in
6-29 loading or storage of the product or raw material on premises;
6-30 (8) tangible personal property used or consumed during
6-31 the actual manufacturing, processing, or fabrication of tangible
6-32 personal property for ultimate sale if the use or consumption of
6-33 the property is necessary and essential to a quality control
6-34 process;
6-35 (9) safety apparel or work clothing that is used
6-36 during the actual manufacturing, processing, or fabrication of
6-37 tangible personal property for ultimate sale if:
6-38 (A) the manufacturing process would not be
6-39 possible without the use of the apparel or clothing; and
6-40 (B) the apparel or clothing is not resold to the
6-41 employee;
6-42 (10) tangible personal property used or consumed in
6-43 the actual manufacturing, processing, or fabrication of tangible
6-44 personal property for ultimate sale if the use or consumption of
6-45 the property is necessary and essential to comply with federal,
6-46 state, or local laws or rules that establish requirements related
6-47 to public health; and
6-48 (11) tangible personal property specifically installed
6-49 to:
6-50 (A) reduce water use and wastewater flow volumes
6-51 from the manufacturing, processing, fabrication, or repair
6-52 operation;
6-53 (B) reuse and recycle wastewater streams
6-54 generated within the manufacturing, processing, fabrication, or
6-55 repair operation; or
6-56 (C) treat wastewater from another industrial or
6-57 municipal source for the purpose of replacing existing freshwater
6-58 sources in the manufacturing, processing, fabrication, or repair
6-59 operation.
6-60 (c) The exemption does not include:
6-61 (1) intraplant transportation equipment, including
6-62 intraplant transportation equipment used to move a product or raw
6-63 material in connection with the manufacturing process and
6-64 specifically including all piping and conveyor systems, provided
6-65 that the following remain eligible for the exemption:
6-66 (A) piping or conveyor systems that are [is] a
6-67 component part of a single item of manufacturing equipment or
6-68 pollution control equipment eligible for the exemption under
6-69 Subsection (a)(2), (a)(4), or (a)(5);
7-1 (B) piping through which the product or an
7-2 intermediate or preliminary product that will become an ingredient
7-3 or component part of the product is recycled or circulated in a
7-4 loop between the single item of manufacturing equipment and the
7-5 ancillary equipment that supports only that single item of
7-6 manufacturing equipment if the single item of manufacturing
7-7 equipment and the ancillary equipment operate together to perform a
7-8 specific step in the manufacturing process; and
7-9 (C) piping through which the product or an
7-10 intermediate or preliminary product that will become an ingredient
7-11 or component part of the product is recycled back to another single
7-12 item of manufacturing equipment and its ancillary equipment in the
7-13 same manufacturing process [remains eligible for the exemption];
7-14 (2) [maintenance or janitorial supplies or equipment
7-15 or other machinery, equipment, materials, or supplies that are used
7-16 incidentally in a manufacturing, processing, or fabrication
7-17 operation;]
7-18 [(3)] hand tools;
7-19 (3) maintenance supplies not otherwise exempted under
7-20 this section, maintenance equipment, janitorial supplies or
7-21 equipment, [(4)] office equipment or supplies, equipment or
7-22 supplies used in sales or distribution activities, research or
7-23 development of new products, or transportation activities[, or
7-24 other tangible personal property not used in an actual
7-25 manufacturing, processing, or fabrication operation]; [or]
7-26 (4) [(5)] machinery and equipment or supplies to the
7-27 extent not otherwise exempted under this section used to maintain
7-28 or store tangible personal property; or
7-29 (5) tangible personal property used in the
7-30 transmission or distribution of electricity, including
7-31 transformers, cable, switches, breakers, capacitor banks,
7-32 regulators, relays, reclosers, fuses, interruptors, reactors,
7-33 arrestors, resistors, insulators, instrument transformers, and
7-34 telemetry units not otherwise exempted under this section, and
7-35 lines, conduit, towers, and poles.
7-36 (f) For purposes of Subsection (c)(1), piping through which
7-37 material is transported forward from one single item of
7-38 manufacturing equipment and its ancillary support equipment to
7-39 another single item of manufacturing equipment and its ancillary
7-40 support equipment is not considered a component part of a single
7-41 item of manufacturing equipment and is not exempt. An integrated
7-42 group of manufacturing and processing machines and ancillary
7-43 equipment that operate together to create or produce the product or
7-44 an intermediate or preliminary product that will become an
7-45 ingredient or component part of the product is not a single item of
7-46 manufacturing equipment.
7-47 (o) The production of a publication for the dissemination of
7-48 news of a general character and of a general interest that is
7-49 printed on newsprint and distributed to the general public free of
7-50 charge at a daily, weekly, or other short interval is considered
7-51 "manufacturing" for purposes of [Subsections (d)-(m) of] this
7-52 section.
7-53 (q) For purposes of Subsection (b), "semiconductor
7-54 fabrication cleanrooms and equipment" means all tangible personal
7-55 property, without regard to whether the property is affixed to or
7-56 incorporated into realty, used in connection with the
7-57 manufacturing, processing, or fabrication in a cleanroom
7-58 environment of a semiconductor product, without regard to whether
7-59 the property is actually contained in the cleanroom environment.
7-60 The term includes integrated systems, fixtures, and piping, all
7-61 property necessary or adapted to reduce contamination or to control
7-62 airflow, temperature, humidity, chemical purity, or other
7-63 environmental conditions or manufacturing tolerances, and
7-64 production equipment and machinery. The term does not include the
7-65 building or a permanent, nonremovable component of the building,
7-66 that houses the cleanroom environment. The term includes moveable
7-67 cleanroom partitions and cleanroom lighting. "Semiconductor
7-68 fabrication cleanrooms and equipment" are not "intraplant
7-69 ["interplant] transportation equipment" [or "used incidentally in a
8-1 manufacturing, processing, or fabrication operation"] as that term
8-2 is [those terms are] used in Subsection [Subsections] (c)(1) [and
8-3 (c)(2)].
8-4 (s) The following do not apply to the semiconductor
8-5 fabrication cleanrooms and equipment in Subsection (q):
8-6 (1) limitations in Subsection (a)(2) that refer to
8-7 tangible personal property directly causing chemical and physical
8-8 changes to the product being manufactured, processed, or fabricated
8-9 for ultimate sale;
8-10 (2) Subsection (c)(1); and
8-11 (3) Subsection (c)(4)[(5)].
8-12 (t) In addition to the other items exempted under this
8-13 section, pre-press machinery, equipment, and supplies, including
8-14 computers, cameras, film, film developing chemicals, veloxes,
8-15 plate-making machinery, plate metal, litho negatives, color
8-16 separation negatives, proofs of color negatives, production art
8-17 work, and typesetting or composition proofs, that are necessary and
8-18 essential to and used in connection with the printing process are
8-19 exempted from the tax imposed by this chapter if they are purchased
8-20 by a person engaged in:
8-21 (1) printing or imprinting tangible personal property
8-22 for sale; or
8-23 (2) producing a publication for the dissemination of
8-24 news of a general character and of a general interest that is
8-25 printed on newsprint and distributed to the general public free of
8-26 charge at a daily, weekly, or other short interval.
8-27 SECTION 17. Subchapter H, Chapter 151, Tax Code, is amended
8-28 by adding Section 151.3185 to read as follows:
8-29 Sec. 151.3185. PROPERTY USED IN THE PRODUCTION OF MOTION
8-30 PICTURES OR VIDEO OR AUDIO RECORDINGS AND BROADCASTS. (a) The
8-31 sale, lease, or rental or storage, use, or other consumption of the
8-32 following items are exempted from the taxes imposed by this
8-33 chapter:
8-34 (1) tangible personal property that will become an
8-35 ingredient or component part of:
8-36 (A) a motion picture or video or audio
8-37 recording, a copy of which is sold or offered for ultimate sale,
8-38 licensed, distributed, broadcast, or otherwise exhibited; or
8-39 (B) a broadcast by a producer of cable programs
8-40 or by a radio or television station licensed by the Federal
8-41 Communications Commission;
8-42 (2) tangible personal property that is necessary or
8-43 essential to and used or consumed in or during:
8-44 (A) the production of a motion picture or video
8-45 or audio recording, a copy of which is sold or offered for ultimate
8-46 sale, licensed, distributed, broadcast, or otherwise exhibited; or
8-47 (B) the production of a broadcast by or for a
8-48 cable program producer or by or for a radio or television station
8-49 licensed by the Federal Communications Commission; and
8-50 (3) except as provided by Subsection (c), services
8-51 that are necessary and essential to and used directly in a
8-52 production described by Subdivision (2)(A) or (B).
8-53 (b) The exemption includes:
8-54 (1) cameras, film, and film developing chemicals that
8-55 are necessary and essential to and used or consumed in a production
8-56 described by Subsection (a)(2)(A) or (B);
8-57 (2) lights, props, sets, teleprompters, microphones,
8-58 digital equipment, special effects equipment and supplies, and
8-59 other equipment that is necessary and essential to and used or
8-60 consumed directly in a production described by Subsection (a)(2)(A)
8-61 or (B); and
8-62 (3) audio or video routing switchers located in a
8-63 studio that are necessary and essential to and used or consumed
8-64 directly in a production described by Subsection (a)(2)(A) or (B).
8-65 (c) The exemption does not include:
8-66 (1) office equipment or supplies;
8-67 (2) maintenance or janitorial equipment or supplies;
8-68 (3) machinery, equipment, or supplies used in sales,
8-69 transmission, or transportation activities;
9-1 (4) machinery, equipment, or supplies used in
9-2 distribution activities, unless otherwise exempted by this section;
9-3 (5) taxable items that are used incidentally in a
9-4 production described by Subsection (a)(2)(A) or (B); or
9-5 (6) the following taxable items, regardless of whether
9-6 they are used incidentally in a production described by Subsection
9-7 (a)(2)(A) or (B):
9-8 (A) telecommunications equipment and services;
9-9 (B) transmission equipment;
9-10 (C) security services;
9-11 (D) motor vehicle parking services; and
9-12 (E) food ready for immediate consumption.
9-13 (d) A production described by Subsection (a)(2)(A) or (B)
9-14 does not include a production for broadcast that is not intended to
9-15 be broadcast to either the general public or to cable television
9-16 service subscribers or paying customers.
9-17 SECTION 18. Subsection (a), Section 151.321, Tax Code, is
9-18 amended to read as follows:
9-19 (a) A taxable item sold by a qualified student organization
9-20 and for which the sales price is $5,000 or less, is exempted from
9-21 the taxes imposed by Subchapter C, except that a taxable item
9-22 manufactured by or donated to the organization is exempt from the
9-23 taxes imposed by Subchapter C regardless of sales price unless sold
9-24 to the donor, if the student organization:
9-25 (1) sells the item at a sale that may last for one day
9-26 only and the primary purpose of which is to raise funds for the
9-27 organization; and
9-28 (2) holds not more than one sale described by
9-29 Subdivision (1) each month for which an exemption is claimed for an
9-30 item sold.
9-31 SECTION 19. Subsection (d), Section 151.350, Tax Code, is
9-32 amended to read as follows:
9-33 (d) In this section, "restore" means:
9-34 (1) launder, [or] clean, repair, treat, or apply
9-35 protective chemicals to an item, to the extent the service is a
9-36 personal service as defined in Section 151.0045; and
9-37 (2) repair, restore, or remodel, to the extent the
9-38 service is:
9-39 (A) a real property repair or remodeling service
9-40 as defined in Section 151.0047; or
9-41 (B) defined as a taxable service in Section
9-42 151.0101(a)(5) [151.0101(5)].
9-43 SECTION 20. Subchapter H, Chapter 151, Tax Code, is amended
9-44 by adding Section 151.354 to read as follows:
9-45 Sec. 151.354. SERVICES BY EMPLOYEES OF PROPERTY MANAGEMENT
9-46 COMPANIES. (a) There are exempted from the taxes imposed by this
9-47 chapter services performed by an employee of a property management
9-48 company if:
9-49 (1) the employee is permanently assigned to one rental
9-50 property by the property management company;
9-51 (2) the property management company is reimbursed on a
9-52 dollar-for-dollar basis for the services provided; and
9-53 (3) the employee remains assigned to that property
9-54 while employed by successive owners or management companies.
9-55 (b) This exemption does not apply to services performed by
9-56 an employee for properties other than the one to which the employee
9-57 is permanently assigned.
9-58 (c) For purposes of this section, a person is an employee of
9-59 a property management company if either the property management
9-60 company or an affiliate of the property management company employs
9-61 the person.
9-62 (d) The property management company must:
9-63 (1) be contractually obligated to the property owner
9-64 to exercise control over the activities of the employee providing
9-65 the service; and
9-66 (2) manage and direct the employee's day-to-day
9-67 activities.
9-68 (e) The property management company or the affiliate must
9-69 pay tax on the taxable items purchased and provided to employees
10-1 providing services on managed property.
10-2 (f) In this section, "property management company" means a
10-3 person:
10-4 (1) who, for consideration, operates and manages all
10-5 the activities at a property held by the owner for purposes of
10-6 rental, including an office building, mall, or other retail or
10-7 office complex, an apartment complex, a duplex, or a home; and
10-8 (2) whose responsibilities include securing tenants,
10-9 hiring, and supervising employees for operation or upkeep of the
10-10 property, receiving and applying revenues, and incurring and paying
10-11 expenses derived from the operation of the property as directed by
10-12 the owner.
10-13 (g) In this section, a corporation, limited liability
10-14 company, partnership, trust, or estate is an affiliate of the
10-15 property management company if an 80 percent ownership interest in
10-16 the property management company or the corporation, limited
10-17 liability company, partnership, trust, or estate is held by the
10-18 other, or if a third person has an 80 percent ownership interest
10-19 either directly or indirectly in both the property management
10-20 company and the corporation, limited liability company,
10-21 partnership, trust, or estate.
10-22 SECTION 21. Section 151.426, Tax Code, is amended by
10-23 amending Subsection (c) and adding Subsections (e), (f), (g), (h),
10-24 (i), and (j) to read as follows:
10-25 (c) Subject to Subsection (e), a [A] retailer or any person
10-26 who extends credit to a purchaser under a retailer's private label
10-27 credit agreement, or an assignee or affiliate of either, is
10-28 entitled to credit or reimbursement for taxes paid on the portion
10-29 of:
10-30 (1) an account determined to be worthless and actually
10-31 charged off for federal income tax purposes; or
10-32 (2) the remaining unpaid sales price of a taxable item
10-33 when the item is repossessed under a conditional sales contract.
10-34 (e) A person is entitled to a credit or reimbursement
10-35 provided by Subsection (c) only if:
10-36 (1) the retailer:
10-37 (A) has a valid sales or use tax permit; and
10-38 (B) remits the tax for which the credit or
10-39 reimbursement is sought;
10-40 (2) all payments on an account are prorated between
10-41 taxable and nontaxable charges; and
10-42 (3) the retailer or person claiming the credit or
10-43 reimbursement provides detailed records outlining:
10-44 (A) the amount the purchaser contracted to pay;
10-45 (B) taxable and nontaxable charges;
10-46 (C) the tax collected and remitted;
10-47 (D) the unpaid portion of the sales price
10-48 assigned; and
10-49 (E) the taxpayer number of the seller who
10-50 collected and remitted the tax.
10-51 (f) A person whose volume and character of uncollectible
10-52 accounts warrants an alternative method of substantiating the
10-53 reimbursement or credit may:
10-54 (1) maintain records other than the records specified
10-55 in Subsection (e) if:
10-56 (A) the records fairly and equitably apportion
10-57 taxable and nontaxable elements of a bad debt and compute the
10-58 amount of sales tax imposed and remitted with respect to the
10-59 taxable charges remaining unpaid on the debt; and
10-60 (B) the comptroller approves the procedures
10-61 used; or
10-62 (2) implement a system to report its future tax
10-63 responsibilities based on a historical percentage calculated from a
10-64 sample of transactions if:
10-65 (A) the system utilizes records provided by the
10-66 person claiming the credit or reimbursement; and
10-67 (B) the comptroller approves the procedures
10-68 used.
10-69 (g) The comptroller may revoke the authorization to report
11-1 under Subsection (f)(2) if the comptroller determines that the
11-2 percentage being used is no longer representative because of:
11-3 (1) a change in law, including a change in the
11-4 interpretation of an existing law or rule; or
11-5 (2) a change in the taxpayer's business operations.
11-6 (h) A person claiming a credit or reimbursement under this
11-7 section shall remit tax on any payments received on an account that
11-8 has been written off and claimed as a bad debt.
11-9 (i) A person who is not a retailer may claim a credit or
11-10 reimbursement authorized by Subsection (c) only for taxes imposed
11-11 by Section 151.051 or 151.101.
11-12 (j) For purposes of this section, "affiliate" means any
11-13 entity or entities that would be classified as a member of an
11-14 affiliated group under 26 U.S.C. Section 1504.
11-15 SECTION 22. Subsections (d) and (g), Section 151.429, Tax
11-16 Code, are amended to read as follows:
11-17 (d) To receive a refund under this section, an enterprise
11-18 project must apply to the comptroller for the refund. The Texas
11-19 Department of Economic Development [department of commerce] shall
11-20 provide the comptroller with the assistance that the comptroller
11-21 requires in administering this section.
11-22 (g) The refund provided by this section is conditioned on
11-23 the enterprise project maintaining at least the same level of
11-24 employment of qualified employees as existed at the time it
11-25 qualified for a refund for a period of three years from that date.
11-26 The Texas Department of Economic Development [Commerce] shall
11-27 annually certify to the comptroller and the Legislative Budget
11-28 Board whether that level of employment of qualified employees has
11-29 been maintained. On the Texas Department of Economic Development
11-30 [Commerce] certifying that such a level has not been maintained,
11-31 the comptroller shall assess that portion of the refund
11-32 attributable to any such decrease in employment, including penalty
11-33 and interest from the date of the refund.
11-34 SECTION 23. Subdivision (1), Subsection (e), Section
11-35 151.429, Tax Code, is amended to read as follows:
11-36 (1) "Enterprise project" means a person designated by
11-37 the Texas Department of Economic Development [Commerce] as an
11-38 enterprise project under Chapter 2303, Government Code.
11-39 SECTION 24. Subsections (d) and (g), Section 151.4291, Tax
11-40 Code, are amended to read as follows:
11-41 (d) To receive a refund under this section, a defense
11-42 readjustment project must apply to the comptroller for the refund.
11-43 The Texas Department of Economic Development [Commerce] shall
11-44 provide the comptroller with the assistance that the comptroller
11-45 requires in administering this section.
11-46 (g) The refund provided by this section is conditioned on
11-47 the defense readjustment project maintaining at least the same
11-48 level of employment of qualified employees as existed at the time
11-49 it qualified for a refund for a period of three years from that
11-50 date. The Texas Department of Economic Development [Commerce]
11-51 shall annually certify to the comptroller and the Legislative
11-52 Budget Board whether that level of employment of qualified
11-53 employees has been maintained. On the Texas Department of Economic
11-54 Development [Commerce] certifying that such a level has not been
11-55 maintained, the comptroller shall assess that portion of the refund
11-56 attributable to any such decrease in employment, including penalty
11-57 and interest from the date of the refund.
11-58 SECTION 25. Subdivision (1), Subsection (e), Section
11-59 151.4291, Tax Code, is amended to read as follows:
11-60 (1) "Defense readjustment project" means a person
11-61 designated by the Texas Department of Economic Development
11-62 [Commerce] as a defense readjustment project under Chapter 2310,
11-63 Government Code.
11-64 SECTION 26. Subsection (a), Section 151.431, Tax Code, is
11-65 amended to read as follows:
11-66 (a) A qualified business operating in the enterprise zone's
11-67 jurisdiction for at least three consecutive years may apply for and
11-68 be granted a onetime refund of sales and use tax paid by the
11-69 qualified business after certification of the qualified business as
12-1 provided by Subsection (b) of this section to a vendor or directly
12-2 to the state for the purchase of equipment or machinery sold to the
12-3 business for use in an enterprise zone if the governing body or
12-4 bodies certify to the Texas Department of Economic Development
12-5 [Commerce] that the business is retaining 10 or more jobs held by
12-6 qualified employees during the year. For the purposes of this
12-7 subsection "job" means an existing employment position of a
12-8 qualified business that has provided employment to a qualified
12-9 employee of at least 1,820 hours annually.
12-10 SECTION 27. Section 152.002, Tax Code, is amended by adding
12-11 Subsection (d) to read as follows:
12-12 (d) A person who holds a lessor license under the Texas
12-13 Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
12-14 Civil Statutes) or is specifically not required to obtain a lessor
12-15 license under Section 4.01(a) of that Act may deduct the fair
12-16 market value of a replaced motor vehicle that has been leased for
12-17 longer than 180 days and is titled to another person if:
12-18 (1) either person:
12-19 (A) holds a beneficial ownership interest in the
12-20 other person of at least 80 percent; or
12-21 (B) acquires all of its vehicles exclusively
12-22 from franchised dealers whose franchisor shares common ownership
12-23 with the other person; and
12-24 (2) the replaced motor vehicle is offered for sale.
12-25 SECTION 28. Section 152.041, Tax Code, is amended by adding
12-26 Subsection (e) to read as follows:
12-27 (e) If a motor vehicle title applicant has paid the tax to
12-28 the seller who is required by this chapter to collect the tax and
12-29 the seller has failed to remit the tax to the county tax
12-30 assessor-collector, the tax assessor-collector may accept
12-31 application for title to the motor vehicle without the payment of
12-32 additional tax by the applicant. Before title to the motor vehicle
12-33 may be issued under these circumstances, the motor vehicle title
12-34 applicant must present satisfactory documentation to the tax
12-35 assessor-collector that the tax was paid. The county tax
12-36 assessor-collector shall notify the comptroller in writing of the
12-37 seller's failure to remit the tax. The notice must:
12-38 (1) be made before the 31st day after the date the
12-39 application for title is accepted;
12-40 (2) contain the name and address of the seller; and
12-41 (3) include any documentation of the payment of the
12-42 tax provided to the county tax assessor-collector by the motor
12-43 vehicle title applicant.
12-44 SECTION 29. Subsections (a), (b), (d), and (h), Section
12-45 153.117, Tax Code, are amended to read as follows:
12-46 (a) A distributor shall keep a record showing the number of
12-47 gallons of:
12-48 (1) all gasoline inventories on hand at the first of
12-49 each month;
12-50 (2) all gasoline refined, compounded, or blended;
12-51 (3) all gasoline purchased or received, showing the
12-52 name of the seller and date of each purchase or receipt;
12-53 (4) all gasoline sold, distributed, or used, showing
12-54 the name of the purchaser and the date of the sale or use; and
12-55 (5) all gasoline lost by fire, theft, or [other]
12-56 accident.
12-57 (b) A dealer shall keep a record showing the number of
12-58 gallons of:
12-59 (1) gasoline inventories on hand at the first of each
12-60 month;
12-61 (2) all gasoline purchased or received, showing the
12-62 name of the seller and the date of each purchase or receipt;
12-63 (3) all gasoline sold or used, showing the date of the
12-64 sale or use; and
12-65 (4) all gasoline lost by fire, theft, or [other]
12-66 accident.
12-67 (d) An aviation fuel dealer shall keep a record showing the
12-68 number of gallons of:
12-69 (1) all gasoline inventories on hand at the first of
13-1 each month;
13-2 (2) all gasoline purchased or received, showing the
13-3 name of the seller and date of each purchase or receipt;
13-4 (3) all gasoline sold or used in aircraft or aircraft
13-5 servicing equipment; and
13-6 (4) all gasoline lost by fire, theft, or [other]
13-7 accident.
13-8 (h) A gasoline jobber shall keep a record showing the number
13-9 of gallons of:
13-10 (1) all gasoline inventories on hand at the first of
13-11 each month;
13-12 (2) all gasoline purchased or received, showing the
13-13 name of the seller and date of each purchase or receipt;
13-14 (3) all gasoline sold, distributed, or used, showing
13-15 the name of the purchaser and the date of the sale or use; and
13-16 (4) all gasoline lost by fire, theft, or [other]
13-17 accident.
13-18 SECTION 30. Subsections (a) and (e), Section 153.119, Tax
13-19 Code, are amended to read as follows:
13-20 (a) A person who exports, sells to the federal government,
13-21 to a public school district in this state, or to a commercial
13-22 transportation company for exclusive use in providing public school
13-23 transportation services to a school district under Section 34.008,
13-24 Education Code, without having added the amount of the tax imposed
13-25 by this chapter to his selling price, loses by fire, theft, or
13-26 [other] accident, or uses gasoline for the purpose of operating or
13-27 propelling a motorboat, tractor used for agricultural purposes, or
13-28 stationary engine, or for another purpose except in a vehicle
13-29 operated or intended to be operated on the public highways of this
13-30 state, and who has paid the tax imposed on gasoline by this chapter
13-31 either directly or indirectly is, when the person has complied with
13-32 the invoice and filing provisions of this section and the rules of
13-33 the comptroller, entitled to reimbursement of the tax paid by him,
13-34 less a filing fee and any amount allowed distributors[, wholesalers
13-35 or jobbers, dealers, or others] under Section 153.105(e)
13-36 [153.105(c)] of this code. A public school district that has paid
13-37 the tax imposed under this chapter on gasoline used by the district
13-38 or a commercial transportation company that has paid the tax
13-39 imposed under this chapter on gasoline used by the company
13-40 exclusively to provide public school transportation services to a
13-41 school district under Section 34.008, Education Code, is entitled
13-42 to reimbursement of the amount of the tax paid in the same manner
13-43 and subject to the same procedures as other exempted users.
13-44 (e) A person who exports or loses by fire, theft, or [other]
13-45 accident 100 or more gallons of gasoline on which the tax has been
13-46 paid, or sells gasoline in any quantity to the United States
13-47 government for the exclusive use of that government on which the
13-48 tax has been paid, may file a claim for a refund of the net tax
13-49 paid to the state in the manner provided by this chapter or as the
13-50 comptroller may direct.
13-51 SECTION 31. Subsection (a), Section 153.121, Tax Code, is
13-52 amended to read as follows:
13-53 (a) Except as provided by this section, a claim for a refund
13-54 must be filed with the comptroller within one year after the first
13-55 day of the calendar month following the purchase, use, delivery,
13-56 export, or loss by fire, theft, or [other] accident of gasoline,
13-57 whichever period expires latest.
13-58 SECTION 32. Section 153.206, Tax Code, is amended by adding
13-59 Subsection (j) to read as follows:
13-60 (j) In each subsequent sale of diesel fuel on which the tax
13-61 has been collected, the amount of the tax shall be added to the
13-62 selling price so that the tax is paid ultimately by the person
13-63 using or consuming the diesel fuel for the purpose of propelling a
13-64 vehicle on the public highways of this state.
13-65 SECTION 33. Subsections (a), (b), (c), (d), and (i), Section
13-66 153.219, Tax Code, are amended to read as follows:
13-67 (a) A supplier shall keep a record showing the number of
13-68 gallons of:
13-69 (1) all diesel fuel inventories on hand at the first
14-1 of each month;
14-2 (2) all diesel fuel refined, compounded, or blended;
14-3 (3) all diesel fuel purchased or received, showing the
14-4 name of the seller, and the date of each purchase or receipt;
14-5 (4) all diesel fuel sold, distributed, or used showing
14-6 the name of the purchaser and the date of sale, distribution, or
14-7 use; and
14-8 (5) all diesel fuel lost by fire, theft, or [other]
14-9 accident.
14-10 (b) A dealer shall keep a record showing the number of
14-11 gallons of:
14-12 (1) all diesel fuel inventories on hand at the first
14-13 of each month;
14-14 (2) all diesel fuel purchased or received, showing the
14-15 name of the seller, the date of each purchase or receipt;
14-16 (3) all diesel fuel sold, distributed, or used; and
14-17 (4) all diesel fuel lost by fire, theft, or [other]
14-18 accident.
14-19 (c) A bonded user or other user with nonhighway equipment
14-20 uses who files a claim for a refund shall keep a record showing the
14-21 number of gallons of:
14-22 (1) inventories of all diesel fuel on hand at the
14-23 first of each month;
14-24 (2) all diesel fuel purchased or received, showing the
14-25 name of the seller and the date of each purchase;
14-26 (3) all diesel fuel deliveries into the fuel supply
14-27 tanks of motor vehicles;
14-28 (4) diesel fuel used for other purposes, showing the
14-29 purpose for which used; and
14-30 (5) all diesel fuel lost by fire, theft, or [other]
14-31 accident.
14-32 (d) An aviation fuel dealer shall keep a record showing the
14-33 number of gallons of:
14-34 (1) all diesel fuel inventories on hand at the first
14-35 of each month;
14-36 (2) all diesel fuel purchased or received, showing the
14-37 name of the seller and the date of each purchase or receipt;
14-38 (3) all diesel fuel sold, distributed, or used in
14-39 aircraft or aircraft servicing equipment; and
14-40 (4) diesel fuel lost by fire, theft, or [other]
14-41 accident.
14-42 (i) A diesel fuel jobber shall keep a record showing the
14-43 number of gallons of:
14-44 (1) all diesel fuel inventories on hand at the first
14-45 of each month;
14-46 (2) all diesel fuel purchased or received, showing the
14-47 name of the seller and date of each purchase or receipt;
14-48 (3) all diesel fuel sold, distributed, or used,
14-49 showing the name of the purchaser and the date of the sale or use;
14-50 and
14-51 (4) all diesel fuel lost by fire, theft, or [other]
14-52 accident.
14-53 SECTION 34. Subsection (e), Section 153.222, Tax Code, is
14-54 amended to read as follows:
14-55 (e) A person who exports or loses by fire, theft, or [other]
14-56 accident 100 or more gallons of diesel fuel on which the tax has
14-57 been paid, or who sells diesel fuel in any quantity to the United
14-58 States for its exclusive use on which the tax has been paid, may
14-59 file a claim for a refund of the net tax paid to the state as the
14-60 comptroller may direct.
14-61 SECTION 35. Subsection (a), Section 153.224, Tax Code, is
14-62 amended to read as follows:
14-63 (a) Except as provided by this section, a claim for a refund
14-64 must be filed with the comptroller within one year after the first
14-65 day of the calendar month following the purchase, use, delivery,
14-66 export, or loss by fire, theft, or [other] accident of diesel fuel,
14-67 whichever period expires latest.
14-68 SECTION 36. Subsections (c) and (g), Section 154.114, Tax
14-69 Code, are amended to read as follows:
15-1 (c) The comptroller shall deliver [mail] the written notice
15-2 by personal service or by [certified] mail[, return receipt
15-3 requested,] to the permit holder's mailing address as it appears on
15-4 the comptroller's records. Service by mail is complete when the
15-5 notice is deposited with [received, as evidenced by return receipt
15-6 from] the U.S. Postal Service.
15-7 (g) If the comptroller suspends or revokes a permit, the
15-8 comptroller shall provide written notice of the suspension or
15-9 revocation, within a reasonable time, to each distributor and
15-10 wholesaler permit holder in the state. A distributor or wholesaler
15-11 permit holder violates Section 154.1015(a) by selling or
15-12 distributing cigarettes to a person whose permit has been suspended
15-13 or revoked only after the distributor or wholesaler permit holder
15-14 receives written notice of the suspension or revocation from the
15-15 comptroller.
15-16 SECTION 37. Subsection (a), Section 154.210, Tax Code, is
15-17 amended to read as follows:
15-18 (a) A distributor shall deliver to the comptroller, on or
15-19 before the last [15th] day of each month, a report for the
15-20 preceding month.
15-21 SECTION 38. Subsection (b), Section 154.308, Tax Code, is
15-22 amended to read as follows:
15-23 (b) On making a deficiency determination, the comptroller
15-24 shall notify the person by [certified] mail or personal service[,
15-25 return receipt requested]. Service by mail is complete when the
15-26 notice is deposited with [received, as evidenced by return receipt
15-27 from] the U.S. Postal Service.
15-28 SECTION 39. Subsections (b) and (d), Section 154.309, Tax
15-29 Code, are amended to read as follows:
15-30 (b) A written request for redetermination must be filed at
15-31 the office of the comptroller not later than the 30th [15th
15-32 working] day after the date notice of deficiency is issued
15-33 [received]. If a written request for redetermination is not filed
15-34 as required by this subsection, the determination is final.
15-35 (d) The comptroller shall give notice of a redetermination
15-36 hearing by personal service or by [certified] mail[, return receipt
15-37 requested]. Service by mail is complete when the notice is
15-38 deposited with [received, as evidenced by return receipt from] the
15-39 U.S. Postal Service.
15-40 SECTION 40. Subsection (c), Section 155.059, Tax Code, is
15-41 amended to read as follows:
15-42 (c) The comptroller shall deliver [mail] the written notice
15-43 by personal service or by [certified] mail[, return receipt
15-44 requested,] to the permit holder's mailing address as it appears in
15-45 the comptroller's records. Service by mail is complete when the
15-46 notice is deposited with [received, as evidenced by the return
15-47 receipt from] the United States Postal Service.
15-48 SECTION 41. Subsection (b), Section 155.103, Tax Code, is
15-49 amended to read as follows:
15-50 (b) A manufacturer who sells tobacco products to a permit
15-51 holder in this state shall file with the comptroller, on or before
15-52 the last [15th] day of each month, a report showing the information
15-53 listed in Subsection (a) for the previous month.
15-54 SECTION 42. Subsection (a), Section 155.111, Tax Code, is
15-55 amended to read as follows:
15-56 (a) A distributor shall file with the comptroller on or
15-57 before the last [30th] day of each month, a report for the
15-58 preceding month.
15-59 SECTION 43. Subsection (b), Section 155.185, Tax Code, is
15-60 amended to read as follows:
15-61 (b) On making a deficiency determination, the comptroller
15-62 shall notify the person by personal service or by [certified]
15-63 mail[, return receipt requested]. Service by mail is complete when
15-64 the notice is deposited with [received, as evidenced by return
15-65 receipt from] the U.S. Postal Service.
15-66 SECTION 44. Subsections (b) and (d), Section 155.186, Tax
15-67 Code, are amended to read as follows:
15-68 (b) A written request for redetermination must be filed at
15-69 the office of the comptroller not later than the 30th [15th
16-1 working] day after the date notice of deficiency is issued
16-2 [received]. If a written request for redetermination is not filed
16-3 as required by this subsection, the determination is final.
16-4 (d) The comptroller shall give notice of a redetermination
16-5 hearing by personal service or by [certified] mail[, return receipt
16-6 requested]. Service by mail is complete when the notice is
16-7 deposited with [received, as evidenced by return receipt from] the
16-8 U.S. Postal Service.
16-9 SECTION 45. Section 156.102, Tax Code, is amended to read as
16-10 follows:
16-11 Sec. 156.102. EXCEPTION--RELIGIOUS, CHARITABLE, OR
16-12 EDUCATIONAL ORGANIZATION. (a) This chapter does not impose a tax
16-13 on a corporation or association that is organized and operated
16-14 exclusively for a religious, charitable, or educational purpose if
16-15 no part of the net earnings of the corporation or association inure
16-16 to the benefit of a private shareholder or individual.
16-17 (b) For purposes of this section, an institution of higher
16-18 education is organized and operated exclusively for an educational
16-19 purpose only if the institution is defined as an institution of
16-20 higher education under any subdivision of Section 61.003, Education
16-21 Code.
16-22 SECTION 46. Subsections (a), (b), (c), and (d), Section
16-23 156.103, Tax Code, are amended to read as follows:
16-24 (a) This [Subject to this section, this] chapter does not
16-25 impose a tax on:
16-26 (1) the United States;
16-27 (2) a governmental entity of the United States[, this
16-28 state, or an agency, institution, board, or commission of this
16-29 state other than an institution of higher education;]
16-30 [(2) an officer or employee of a state governmental
16-31 entity described by Subdivision (1) when traveling on or otherwise
16-32 engaged in the course of official duties for the governmental
16-33 entity]; or
16-34 (3) an officer or employee of a governmental entity of
16-35 the United States when traveling on or otherwise engaged in the
16-36 course of official duties for the governmental entity [if the
16-37 governmental entity directly pays to the hotel the price for the
16-38 room].
16-39 (b) This state, or an agency, institution, board, or
16-40 commission of this state other than an institution of higher
16-41 education [A governmental entity otherwise excepted under this
16-42 section] shall pay the tax imposed by this chapter and is entitled
16-43 to a refund of the amount of tax paid in accordance with Section
16-44 156.154.
16-45 (c) A state officer or employee of a state governmental
16-46 entity described by Subsection (b) [(a)(2)] who is entitled to
16-47 reimbursement for the cost of lodging and for whom a special
16-48 provision or exception to the general rate of reimbursement under
16-49 the General Appropriations Act is not applicable shall pay the tax
16-50 imposed by [under] this chapter [as if it were imposed by this
16-51 chapter]. The state governmental entity with whom the person is
16-52 associated is entitled under Section 156.154 to a refund of the tax
16-53 paid.
16-54 (d) A state officer or employee of a state governmental
16-55 entity described by Subsection (b) [(a)(2)] for whom a special
16-56 provision or exception to the general rate of reimbursement under
16-57 the General Appropriations Act applies and who is provided with
16-58 photo identification verifying the identity and exempt status of
16-59 the person is not required to pay the tax and is not entitled to a
16-60 refund. The photo identification of a state officer or employee
16-61 described by this section may be modified for the purposes of this
16-62 section.
16-63 SECTION 47. Section 171.063, Tax Code, is amended by
16-64 amending Subsection (a) and adding Subsection (h) to read as
16-65 follows:
16-66 (a) The following corporations are exempt from the franchise
16-67 tax:
16-68 (1) a nonprofit corporation exempted from the federal
16-69 income tax under Section 501(c)(3), (4), (5), (6), (7), (8), (10),
17-1 or (19), Internal Revenue Code which in the case of a nonprofit
17-2 hospital means a hospital providing community benefits that include
17-3 charity care and government-sponsored indigent health care
17-4 [community benefits] as set forth in Subchapter D, Chapter 311,
17-5 Health and Safety Code; [Paragraph (A), (B), (C), (D), (E), (F), or
17-6 (G):]
17-7 [(A) charity care and government-sponsored
17-8 indigent health care are provided at a level which is reasonable in
17-9 relation to the community needs, as determined through the
17-10 community needs assessment, the available resources of the hospital
17-11 or hospital system, and the tax-exempt benefits received by the
17-12 hospital or hospital system;]
17-13 [(B) charity care and government-sponsored
17-14 indigent health care are provided in an amount equal to at least
17-15 four percent of the hospital's or hospital system's net patient
17-16 revenue;]
17-17 [(C) charity care and government-sponsored
17-18 indigent health care are provided in an amount equal to at least
17-19 100 percent of the hospital's or hospital system's tax-exempt
17-20 benefits, excluding federal income tax;]
17-21 [(D) for tax periods beginning before January 1,
17-22 1996, charity care and community benefits are provided in a
17-23 combined amount equal to at least five percent of the hospital's
17-24 net patient revenue, provided that charity care and
17-25 government-sponsored indigent health care are provided in an amount
17-26 equal to at least three percent of net patient revenue;]
17-27 [(E) for tax periods beginning after December
17-28 31, 1995, charity care and community benefits are provided in a
17-29 combined amount equal to at least five percent of the hospital's or
17-30 hospital system's net patient revenue, provided that charity care
17-31 and government-sponsored indigent health care are provided in an
17-32 amount equal to at least four percent of net patient revenue;]
17-33 [(F) a nonprofit hospital that has been
17-34 designated as a disproportionate share hospital under the state
17-35 Medicaid program in the current year or in either of the previous
17-36 two fiscal years is considered to have provided a reasonable amount
17-37 of charity care and government-sponsored indigent health care and
17-38 is considered in compliance with the standards provided by this
17-39 subsection; or]
17-40 [(G) a hospital operated on a nonprofit basis
17-41 that is located in a county with a population of less than 50,000
17-42 and in which the entire county or the population of the entire
17-43 county has been designated as a health professionals shortage area
17-44 is considered in compliance with the standards provided by this
17-45 subsection;]
17-46 (2) a corporation exempted under Section 501(c)(2) or
17-47 (25), Internal Revenue Code, if the corporation or corporations for
17-48 which it holds title to property is either exempt from or not
17-49 subject to the franchise tax; and
17-50 (3) a corporation exempted from federal income tax
17-51 under Section 501(c)(16), Internal Revenue Code[; and]
17-52 [(4) a nonprofit corporation exempted from the federal
17-53 income tax under Section 501(c)(3), Internal Revenue Code, that
17-54 does not receive any payment for providing health care services to
17-55 inpatients or outpatients from any source including but not limited
17-56 to the patient or person legally obligated to support the patient,
17-57 third-party payors, Medicare, Medicaid, or any other state or local
17-58 indigent care program. Payment for providing health care services
17-59 does not include charitable donations, legacies, bequests, or
17-60 grants or payments for research.]
17-61 [For purposes of satisfying Paragraph (E) of Subdivision (1),
17-62 a hospital or hospital system may not change its existing fiscal
17-63 year unless the hospital or hospital system changes its ownership
17-64 or corporate structure as a result of a sale or merger.]
17-65 [For purposes of this subsection, a hospital that satisfies
17-66 Paragraph (A), (F), or (G) of Subdivision (1) shall be excluded in
17-67 determining a hospital system's compliance with the standards
17-68 provided by Paragraph (B), (C), (D), or (E) of Subdivision (1).]
17-69 [For purposes of this subsection, the terms "charity care,"
18-1 "government-sponsored indigent health care," "health care
18-2 organization," "hospital system," "net patient revenue," "nonprofit
18-3 hospital," and "tax-exempt benefits" have the meanings set forth in
18-4 Sections 311.031 and 311.042, Health and Safety Code. A
18-5 determination of the amount of community benefits and charity care
18-6 and government-sponsored indigent health care provided by a
18-7 hospital or hospital system and the hospital's or hospital system's
18-8 compliance with the requirements of Section 311.045, Health and
18-9 Safety Code, shall be based on the most recently completed and
18-10 audited prior fiscal year of the hospital or hospital system.]
18-11 [A requirement that a nonprofit hospital provide charity care
18-12 and community benefits under this subsection may be satisfied by a
18-13 donation of money to the Texas Healthy Kids Corporation established
18-14 by Chapter 109, Health and Safety Code, provided that:]
18-15 [(1) the money is donated to be used for a purpose
18-16 described by Section 109.033(c), Health and Safety Code; and]
18-17 [(2) not more than 10 percent of the charity care
18-18 required under any provision of this subsection may be satisfied by
18-19 the donation.]
18-20 [The providing of charity care and government-sponsored
18-21 indigent health care in accordance with Paragraph (A) of
18-22 Subdivision (1) shall be guided by the prudent business judgment of
18-23 the hospital which will ultimately determine the appropriate level
18-24 of charity care and government-sponsored indigent health care based
18-25 on the community needs, the available resources of the hospital,
18-26 the tax-exempt benefits received by the hospital, and other factors
18-27 that may be unique to the hospital, such as the hospital's volume
18-28 of Medicare and Medicaid patients. These criteria shall not be
18-29 determinative factors, but shall be guidelines contributing to the
18-30 hospital's decision along with other factors which may be unique to
18-31 the hospital. The formulas contained in Paragraphs (B), (C), (D),
18-32 and (E) of Subdivision (1) shall also not be considered
18-33 determinative of a reasonable amount of charity care and
18-34 government-sponsored indigent health care.]
18-35 [The requirements of this subsection shall not apply to the
18-36 extent a hospital or hospital system demonstrates that reductions
18-37 in the amount of community benefits, charity care, and
18-38 government-sponsored indigent health care are necessary to maintain
18-39 financial reserves at a level required by a bond covenant, are
18-40 necessary to prevent the hospital or hospital system from
18-41 endangering its ability to continue operations, or if the hospital,
18-42 as a result of a natural or other disaster, is required
18-43 substantially to curtail its operations.]
18-44 [In any fiscal year that a hospital or hospital system,
18-45 through unintended miscalculation, fails to meet any of the
18-46 standards in Subdivision (1), the hospital or hospital system shall
18-47 not lose its tax-exempt status without the opportunity to cure the
18-48 miscalculation in the fiscal year following the fiscal year the
18-49 failure is discovered by both meeting one of the standards and
18-50 providing an additional amount of charity care and
18-51 government-sponsored indigent health care that is equal to the
18-52 shortfall from the previous fiscal year. A hospital or hospital
18-53 system may apply this provision only once every five years].
18-54 (h) A requirement that a nonprofit hospital provide charity
18-55 care and community benefits under Subsection (a)(1) may be
18-56 satisfied by a donation of money to the Texas Healthy Kids
18-57 Corporation established by Chapter 109, Health and Safety Code, if:
18-58 (1) the money is donated to be used for a purpose
18-59 described by Section 109.033(c), Health and Safety Code; and
18-60 (2) not more than 10 percent of the charity care
18-61 required under any provision of Section 311.045, Health and Safety
18-62 Code, may be satisfied by the donation.
18-63 SECTION 48. Subsections (c) and (d), Section 171.063, Tax
18-64 Code, are amended to read as follows:
18-65 (c) A corporation's exemption under Subsection (b) of this
18-66 section is established by furnishing the comptroller with a copy of
18-67 the Internal Revenue Service's letter of exemption issued to the
18-68 corporation. [The copy of the letter must be filed with the
18-69 comptroller within 15 months after the day that is the last day of
19-1 a calendar month and that is nearest to the date of the
19-2 corporation's charter or certificate of authority.]
19-3 (d) If the Internal Revenue Service has not timely issued to
19-4 a corporation a letter of exemption, evidence establishing the
19-5 corporation's provisional exemption under this section is
19-6 sufficient if the corporation timely files with the comptroller
19-7 [within the 15-month period established by Subsection (c) of this
19-8 section] evidence that the corporation has applied in good faith
19-9 for the federal tax exemption. The evidence must be filed not
19-10 later than the 15th month after the day that is the last day of a
19-11 calendar month and that is nearest to the date of the corporation's
19-12 charter or certificate of authority.
19-13 SECTION 49. The heading of Subchapter C, Chapter 171, Tax
19-14 Code, is amended to read as follows:
19-15 SUBCHAPTER C. DETERMINATION OF TAXABLE CAPITAL
19-16 AND TAXABLE EARNED SURPLUS; ALLOCATION AND APPORTIONMENT
19-17 SECTION 50. The heading of Section 171.1015, Tax Code, is
19-18 amended to read as follows:
19-19 Sec. 171.1015. REDUCTION OF TAXABLE CAPITAL OR TAXABLE
19-20 EARNED SURPLUS FOR INVESTMENT IN AN ENTERPRISE ZONE.
19-21 SECTION 51. Subdivision (1), Subsection (f), Section
19-22 171.1015, Tax Code, is amended to read as follows:
19-23 (1) "Enterprise project" means a person designated by
19-24 the Texas Department of Economic Development [Commerce] as an
19-25 enterprise project under Chapter 2303, Government Code.
19-26 SECTION 52. Subsection (g), Section 171.1015, Tax Code, is
19-27 amended to read as follows:
19-28 (g) Only qualified businesses that have been certified as
19-29 eligible for a tax deduction under this section by the Texas
19-30 Department of Economic Development [Commerce] to the comptroller
19-31 and the Legislative Budget Board are entitled to the tax deduction.
19-32 SECTION 53. The heading of Section 171.1016, Tax Code, is
19-33 amended to read as follows:
19-34 Sec. 171.1016. REDUCTION OF TAXABLE CAPITAL OR TAXABLE
19-35 EARNED SURPLUS FOR INVESTMENT IN A READJUSTMENT ZONE.
19-36 SECTION 54. Subdivision (1), Subsection (f), Section
19-37 171.1016, Tax Code, is amended to read as follows:
19-38 (1) "Defense readjustment project" means a person
19-39 designated by the Texas Department of Economic Development
19-40 [Commerce] as a defense readjustment project under Chapter 2310,
19-41 Government Code.
19-42 SECTION 55. Subsection (g), Section 171.1016, Tax Code, is
19-43 amended to read as follows:
19-44 (g) Only qualified businesses that have been certified as
19-45 eligible for a tax deduction under this section by the Texas
19-46 Department of Economic Development [Commerce] to the comptroller
19-47 and the Legislative Budget Board are entitled to the tax deduction.
19-48 SECTION 56. The heading of Section 171.107, Tax Code, is
19-49 amended to read as follows:
19-50 Sec. 171.107. DEDUCTION OF COST OF SOLAR ENERGY DEVICE FROM
19-51 TAXABLE CAPITAL OR TAXABLE EARNED SURPLUS APPORTIONED TO THIS
19-52 STATE.
19-53 SECTION 57. Section 171.110, Tax Code, is amended by adding
19-54 Subsections (i) and (j) to read as follows:
19-55 (i) For purposes of this section, any person designated as
19-56 an officer is presumed to be an officer if that person:
19-57 (1) holds an office created by the board of directors
19-58 or under the corporate charter or bylaws; and
19-59 (2) has legal authority to bind the corporation with
19-60 third parties by executing contracts or other legal documents.
19-61 (j) A corporation may rebut the presumption described in
19-62 Subsection (i) that a person is an officer if it conclusively
19-63 shows, through the person's job description or other documentation,
19-64 that the person does not participate or have authority to
19-65 participate in significant policymaking aspects of the corporate
19-66 operations.
19-67 SECTION 58. Subsection (a), Section 171.501, Tax Code, is
19-68 amended to read as follows:
19-69 (a) A corporation that has been certified a qualified
20-1 business as provided by Chapter 2303, Government Code may apply for
20-2 and be granted a refund of franchise tax paid with an initial or
20-3 annual report if the governing body or bodies certify to the Texas
20-4 Department of Economic Development [Commerce] that the business has
20-5 created 10 or more new jobs in its enterprise zone held by
20-6 qualified employees during the calendar year that contains the end
20-7 of the accounting period on which the report is based. The Texas
20-8 Department of Economic Development [Commerce] shall certify
20-9 eligibility for any refund to the comptroller.
20-10 SECTION 59. The heading of Subchapter C, Chapter 183, Tax
20-11 Code, is amended to read as follows:
20-12 SUBCHAPTER C. MIXED BEVERAGE TAX CLEARANCE [FUND]
20-13 SECTION 60. The heading of Section 183.051, Tax Code, is
20-14 amended to read as follows:
20-15 Sec. 183.051. MIXED BEVERAGE TAX CLEARANCE [FUND].
20-16 SECTION 61. Subsection (b), Section 183.051, Tax Code, is
20-17 amended to read as follows:
20-18 (b) The comptroller shall issue to each county described in
20-19 Subsection (a) a warrant drawn on the general revenue [mixed
20-20 beverage tax clearance] fund in an [the] amount appropriated by the
20-21 legislature that may not be greater than [of] 10.7143 percent of
20-22 receipts from permittees within the county during the quarter and
20-23 shall issue to each incorporated municipality described in
20-24 Subsection (a) a warrant drawn on that fund in an [the] amount
20-25 appropriated by the legislature that may not be greater than [of]
20-26 10.7143 percent of receipts from permittees within the incorporated
20-27 municipality during the quarter. [The remainder of the receipts
20-28 for the quarter and all interest earned on that fund shall be
20-29 transferred to the general revenue fund.]
20-30 SECTION 62. Subsection (b), Section 191.085, Tax Code, is
20-31 amended to read as follows:
20-32 (b) The person shall keep the record open for four [two]
20-33 years for inspection by the comptroller or the attorney general.
20-34 SECTION 63. Subsection (a), Section 203.051, Tax Code, is
20-35 amended to read as follows:
20-36 (a) A producer shall keep a complete record of all sulphur
20-37 he produces in this state. A producer may destroy a record
20-38 required by this section four [three] years after the last entry in
20-39 the record.
20-40 SECTION 64. Section 321.102, Tax Code, is amended by adding
20-41 Subsections (e), (f), and (g) to read as follows:
20-42 (e) If as a result of the imposition or increase in a sales
20-43 and use tax by a municipality in which there is located all or part
20-44 of a local governmental entity that has adopted a sales and use tax
20-45 or as a result of the annexation by a municipality of all or part
20-46 of the territory in a local governmental entity that has adopted a
20-47 sales and use tax the overlapping local sales and use taxes in the
20-48 area will exceed two percent, the entity's sales and use tax is
20-49 automatically reduced in that area to a rate that when added to the
20-50 combined rate of local sales and use taxes will equal two percent.
20-51 (f) If an entity's rate is reduced in accordance with
20-52 Subsection (e), the comptroller shall withhold from the
20-53 municipality's monthly sales and use tax allocation an amount equal
20-54 to the amount that would have been collected by the entity had the
20-55 municipality not imposed or increased its sales and use tax or
20-56 annexed the area in the entity less amounts that the entity
20-57 collects following the municipality's levy of or increase in its
20-58 sales and use tax or annexation of the area in the entity. The
20-59 comptroller shall withhold and pay the amount withheld to the
20-60 entity under policies or procedures that the comptroller considers
20-61 reasonable.
20-62 (g) A transit authority is not a local governmental entity
20-63 for the purposes of Subsections (e) and (f).
20-64 SECTION 65. Section 322.302, Tax Code, is amended to read as
20-65 follows:
20-66 Sec. 322.302. DISTRIBUTION OF TRUST FUNDS. At [(a) Except
20-67 as provided by Subsection (b) of this section, at] least quarterly
20-68 [twice] during each state fiscal year and as often as feasible, the
20-69 comptroller shall send to the person at each taxing entity who
21-1 performs the function of entity treasurer, payable to the taxing
21-2 entity, the entity's share of the taxes collected by the
21-3 comptroller under this chapter.
21-4 [(b) The comptroller shall make payments required by
21-5 Subsection (a) of this section to entities created under Chapter
21-6 451 or 452, Transportation Code, quarterly each fiscal year as soon
21-7 as practicable after the end of each quarter.]
21-8 SECTION 66. Subsection (c), Section 323.102, Tax Code, is
21-9 amended to read as follows:
21-10 (c) A tax imposed under Section 323.105 of this code or
21-11 Chapter 326, Local Government Code, takes effect on the first day
21-12 of the first calendar quarter after the expiration of the first
21-13 complete calendar quarter occurring after the date on which the
21-14 comptroller receives a notice of the action as required by Section
21-15 323.405(b).
21-16 SECTION 67. Subsection (e), Section 323.105, Tax Code, is
21-17 amended to read as follows:
21-18 (e) The comptroller shall remit to the county amounts
21-19 collected at the rate imposed under this section as part of the
21-20 regular allocation of county tax revenue collected by the
21-21 comptroller if the district is composed of the entire county. The
21-22 comptroller [county] shall, if the district is composed of an area
21-23 less than the entire county, remit that amount to the district.
21-24 Retailers may not be required to use the allocation and reporting
21-25 procedures in the collection of taxes under this section different
21-26 from the procedures that retailers use in the collection of other
21-27 sales and use taxes under this chapter. An item, transaction, or
21-28 service that is taxable in a county under a sales or use tax
21-29 authorized by another section of this chapter is taxable under this
21-30 section. An item, transaction, or service that is not taxable in a
21-31 county under a sales or use tax authorized by another section of
21-32 this chapter is not taxable under this section.
21-33 SECTION 68. Section 351.006, Tax Code, is amended to read as
21-34 follows:
21-35 Sec. 351.006. EXEMPTION. (a) A United States governmental
21-36 entity described in Section 156.103(a) is exempt from the payment
21-37 of tax authorized by this chapter [excepted from the tax imposed
21-38 by Chapter 156 under Section 156.103(a)(1) or (a)(3) shall pay the
21-39 tax imposed by this chapter but is entitled to a refund of the tax
21-40 paid].
21-41 (b) A state governmental entity described in Section
21-42 156.103(b) shall pay the tax imposed by this chapter but is
21-43 entitled to a refund of the tax paid.
21-44 (c) A person who is described by Section 156.103(d) is
21-45 exempt from the payment of the tax authorized by this chapter.
21-46 (d) [(c)] A person who is described by Section 156.103(c)
21-47 shall pay the tax imposed by this chapter but the state
21-48 governmental entity with whom the person is associated is entitled
21-49 to a refund of the tax paid.
21-50 (e) [(d)] To receive a refund of tax paid under this
21-51 chapter, the governmental entity entitled to the refund must file a
21-52 refund claim on a form provided by the municipality and containing
21-53 the information required by the municipality. The comptroller by
21-54 rule shall prescribe the form that must be used and the information
21-55 that must be provided.
21-56 (f) [(e)] A governmental entity may file a refund claim with
21-57 the municipality under this chapter only for each calendar quarter
21-58 for all reimbursements accrued during that quarter. The
21-59 municipality may adopt an ordinance to enforce this section.
21-60 SECTION 69. Section 352.007, Tax Code, is amended to read as
21-61 follows:
21-62 Sec. 352.007. EXEMPTION. (a) A United States governmental
21-63 entity described in Section 156.103(a) is exempt from the payment
21-64 of tax authorized by this chapter [excepted from the tax imposed by
21-65 Chapter 156 under Section 156.103(a)(1) or (a)(3) shall pay the tax
21-66 imposed by this chapter but is entitled to a refund of the tax
21-67 paid].
21-68 (b) A state governmental entity subject to the tax imposed
21-69 by Chapter 156 under Section 156.103(b) shall pay the tax imposed
22-1 by this chapter but is entitled to a refund of the tax paid.
22-2 (c) A person who is described by Section 156.103(d) is
22-3 exempt from the payment of the tax authorized by this chapter.
22-4 (d) [(c)] A person who is described by Section 156.103(c)
22-5 shall pay the tax imposed by this chapter but the state
22-6 governmental entity with whom the person is associated is entitled
22-7 to a refund of the tax paid.
22-8 (e) [(d)] To receive a refund of a tax paid under this
22-9 chapter, the governmental entity entitled to the refund must file a
22-10 refund claim on a form provided by the county and containing the
22-11 information required by the county. The comptroller by rule shall
22-12 prescribe the form that must be used and the information that must
22-13 be provided.
22-14 (f) [(e)] A governmental entity may file a refund claim with
22-15 the county under this chapter only for each calendar quarter for
22-16 all reimbursements accrued during that quarter. The county may
22-17 adopt a resolution to enforce this section.
22-18 SECTION 70. Subsection (e), Section 4B, Development
22-19 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
22-20 Statutes), as amended by Section 3, Chapter 1022, and Section 12,
22-21 Chapter 1031, Acts of the 73rd Legislature, Regular Session, 1993,
22-22 is reenacted to read as follows:
22-23 (e) The rate of a tax adopted under this section must be
22-24 one-eighth, one-fourth, three-eighths, or one-half of one percent.
22-25 The ballot proposition at the election held to adopt the tax must
22-26 specify the rate of the tax to be adopted. A corporation that
22-27 holds an election to reduce a tax imposed under Section 4A of this
22-28 Act may in a separate proposition on the same ballot adopt a tax
22-29 under this section. If an eligible city adopts the tax, a tax is
22-30 imposed on the receipts from the sale at retail of taxable items
22-31 within the eligible city at the rate approved at the election.
22-32 There is also imposed an excise tax on the use, storage, or other
22-33 consumption within the eligible city of tangible personal property
22-34 purchased, leased, or rented from a retailer during the period that
22-35 the tax is effective within the eligible city. The rate of the
22-36 excise tax is the same as the rate of the sales tax portion of the
22-37 tax and is applied to the sale price of the tangible personal
22-38 property.
22-39 SECTION 71. The following provisions of the Tax Code are
22-40 repealed:
22-41 (1) Subsection (g), Section 151.318;
22-42 (2) Subsection (p), Section 151.318; and
22-43 (3) Subsection (d), Section 152.062.
22-44 SECTION 72. A tax to which Section 66 of this Act applies
22-45 that is not being collected on the effective date of this Act and
22-46 that was adopted at an election held before January 1, 1999, takes
22-47 effect on the first day of the first calendar quarter that begins
22-48 after the effective date of this Act.
22-49 SECTION 73. Each change in law made to the following
22-50 provisions by this Act is a clarification of existing law and does
22-51 not imply that existing law may be construed as inconsistent with
22-52 the law as amended by this Act:
22-53 (1) Section 102.075, Code of Criminal Procedure;
22-54 (2) Section 9, Texas State College and University
22-55 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
22-56 Texas Insurance Code);
22-57 (3) Section 11, Texas Public School Employees Group
22-58 Insurance Act (Article 3.50-4, Insurance Code);
22-59 (4) Section 326.029, Local Government Code;
22-60 (5) Section 326.092, Local Government Code;
22-61 (6) Section 151.318, Tax Code;
22-62 (7) Section 151.3185, Tax Code;
22-63 (8) Subsection (d), Section 151.350, Tax Code;
22-64 (9) Section 152.002, Tax Code;
22-65 (10) Section 152.041, Tax Code;
22-66 (11) Section 153.117, Tax Code;
22-67 (12) Section 153.119, Tax Code;
22-68 (13) Section 153.206, Tax Code;
22-69 (14) Section 153.219, Tax Code;
23-1 (15) Section 171.063, Tax Code;
23-2 (16) the heading of Subchapter C, Chapter 171, Tax
23-3 Code;
23-4 (17) the headings of Sections 171.1015, 171.1016, and
23-5 171.107, Tax Code;
23-6 (18) Section 171.110, Tax Code;
23-7 (19) Section 191.085, Tax Code; and
23-8 (20) Section 203.051, Tax Code.
23-9 SECTION 74. The comptroller of public accounts may adopt
23-10 rules and take other actions before October 1, 1999, as the
23-11 comptroller deems necessary or advisable to prepare for the taking
23-12 effect of this Act.
23-13 SECTION 75. (a) Except as provided by Subsections (b), (c),
23-14 and (d) of this section, this Act takes effect October 1, 1999.
23-15 (b) Section 3 of this Act takes effect January 1, 2000, and
23-16 applies to reporting periods beginning on or after that date.
23-17 (c) Sections 47 through 58 of this Act take effect January
23-18 1, 2000, and apply to a report originally due on or after that
23-19 date.
23-20 (d) Sections 64, 66, 72, and 74 of this Act take effect on
23-21 the earliest date on which they may take effect under Section 39,
23-22 Article III, Texas Constitution.
23-23 SECTION 76. The importance of this legislation and the
23-24 crowded condition of the calendars in both houses create an
23-25 emergency and an imperative public necessity that the
23-26 constitutional rule requiring bills to be read on three several
23-27 days in each house be suspended, and this rule is hereby suspended,
23-28 and that this Act take effect and be in force according to its
23-29 terms, and it is so enacted.
23-30 * * * * *