By Duncan S.R. No. 1191
76R17576 JJT-D
R E S O L U T I O N
1-1 BE IT RESOLVED by the Senate of the State of Texas, 76th
1-2 Legislature, Regular Session, 1999, That Senate Rule 12.03 be
1-3 suspended in part, as provided by Senate Rule 12.08, to enable the
1-4 conference committee appointed to resolve the differences on House
1-5 Bill No. 3211, relating to state fiscal matters, to consider and
1-6 take action on the following specific matters:
1-7 (1) Senate Rule 12.03(4) is suspended to permit the
1-8 committee to add additional text not included in either the house
1-9 or senate version of the bill, consisting of a new article of the
1-10 bill, to read as follows:
1-11 ARTICLE 2. TECHNICAL CHANGES REGARDING TAXES AND FEES
1-12 SECTION 2.01. Subsection (g), Article 102.075, Code of
1-13 Criminal 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 2.02. Section 403.014(b), Government Code, is
1-24 amended to read as follows:
2-1 (b) The report must include:
2-2 (1) an analysis of each special provision that reduces
2-3 the amount of tax payable, to include an estimate of the loss of
2-4 revenue for a six-year period including the current fiscal biennium
2-5 and a citation of the statutory or legal authority for the
2-6 provision; and
2-7 (2) for provisions reducing revenue by more than one
2-8 percent of total revenue for a tax covered by this section:
2-9 (A) [,] the effect of each provision on the
2-10 distribution of the tax burden by income class and industry or
2-11 business class, as appropriate; and
2-12 (B) the effect of each provision on total income
2-13 by income class.
2-14 SECTION 2.03. Section 403.0141(c), Government Code, is
2-15 amended to read as follows:
2-16 (c) To the extent data is available, the incidence impact
2-17 analysis under Subsections (a) and (b):
2-18 (1) shall evaluate the tax burden:
2-19 (A) on the overall income distribution, using a
2-20 systemwide incidence measure or other appropriate measures of
2-21 equality and inequality; and
2-22 (B) on income classes, including, at a minimum,
2-23 quintiles of the income distribution, on renters and homeowners, on
2-24 industry or business classes, as appropriate, and on various types
2-25 of business organizations;
2-26 (2) may evaluate the tax burden:
2-27 (A) by other appropriate taxpayer
3-1 characteristics, such as whether the taxpayer is a farmer, rancher,
3-2 retired elderly, or resident or nonresident of the state; and
3-3 (B) by distribution of impact on consumers,
3-4 labor, capital, and out-of-state persons and entities; [and]
3-5 (3) shall evaluate the effect of each tax on total
3-6 income by income group; and
3-7 (4) shall:
3-8 (A) use the broadest measure of economic income
3-9 for which reliable data is available; and
3-10 (B) include a statement of the incidence
3-11 assumptions that were used in making the analysis.
3-12 SECTION 2.04. Section 12(b), Article 1.14-1, Insurance Code,
3-13 is amended to read as follows:
3-14 (b) The report shall be filed and any tax due shall be paid
3-15 by the insured or by any other person designated by the insured.
3-16 The report and tax are due on or before May 15 [March 1] of the
3-17 calendar year after the calendar year in which the insurance was
3-18 procured, continued, or renewed or on another date prescribed by
3-19 the comptroller.
3-20 SECTION 2.05. Sections 12(a) and (b), Article 1.14-2,
3-21 Insurance Code, are amended to read as follows:
3-22 (a) The premiums charged for surplus lines insurance are
3-23 subject to a premium receipts tax of 4.85 percent of gross premiums
3-24 charged for such insurance. The term premium includes all
3-25 premiums, membership fees, assessments, dues or any other
3-26 consideration for insurance. Such tax shall be in lieu of all
3-27 other insurance taxes. The surplus lines agent shall collect from
4-1 the insured the amount of the tax at the time of delivery of the
4-2 cover note, certificate of insurance, policy or other initial
4-3 confirmation of insurance, in addition to the full amount of the
4-4 gross premium charged by the insurer for the insurance. No agent
4-5 shall absorb such tax nor shall any agent, as an inducement for
4-6 insurance or for any other reason, rebate all or any part of such
4-7 tax or his commission. The surplus lines agent shall file a report
4-8 and pay taxes to the comptroller on or before March 1 of each year
4-9 on forms prescribed by the comptroller. The [the] amount of taxes
4-10 shall be based on gross premiums written or received for such
4-11 insurance placed through an eligible surplus lines insurer during
4-12 the calendar year ending on the preceding December 31. A tax
4-13 prepayment shall be required any time accrued taxes due equal or
4-14 exceed $70,000. The prepayment of the accrued taxes, with a form
4-15 prescribed by the comptroller, shall be due by the 15th day of the
4-16 month following the month in which accrued taxes total $70,000 [and
4-17 shall pay to the comptroller the tax as provided for by this
4-18 Article]. If a surplus lines policy covers risks or exposures only
4-19 partially in this state, the tax payable shall be computed on the
4-20 portions of the premium which are properly allocated to the risks
4-21 or exposures located in this state. In determining the amount of
4-22 premiums taxable in this state, all premiums written, procured, or
4-23 received in this state and all premiums on policies negotiated in
4-24 this state shall be deemed written on property or risks located or
4-25 resident in this state, except such premiums as are properly
4-26 allocated or apportioned and reported as premiums which may be
4-27 subject to taxation by any other state or states. Premiums that
5-1 are properly allocated to any other state or states that are
5-2 specifically exempt from taxation under the regulations of that
5-3 state or states are not taxable in this state. Premiums on risks
5-4 or exposures which are properly allocated to federal waters,
5-5 international waters or under the jurisdiction of a foreign
5-6 government shall not be taxable by this state. In event of
5-7 cancellation and rewriting of any surplus lines insurance contract
5-8 the additional premium for premium receipts tax purposes shall be
5-9 the premium in excess of the unearned premium of the canceled
5-10 insurance contract.
5-11 (b) All surplus lines premium receipt taxes collected by a
5-12 surplus lines agent are trust funds in his hands [and the property
5-13 of this state. Such funds shall be maintained by the surplus lines
5-14 agent in a separate account and shall not be mingled with any other
5-15 funds, either business or private]. Any surplus lines agent who
5-16 fails or refuses to pay over to the state the surplus lines premium
5-17 receipts tax at the time required by [in] this section, or who
5-18 fraudulently withholds or appropriates or otherwise uses such money
5-19 or any portions thereof belonging to the state is guilty of theft
5-20 and shall be punished as provided by law for the crime of theft,
5-21 irrespective of whether any such surplus lines agent has or claims
5-22 to have any interest in such money so received by him.
5-23 SECTION 2.06. Section 9(b), Texas State College and
5-24 University Employees Uniform Insurance Benefits Act (Article
5-25 3.50-3, Vernon's Texas Insurance Code), is amended to read as
5-26 follows:
5-27 (b) Premiums on policies, insurance contracts, or agreements
6-1 with health maintenance organizations established under this Act
6-2 are not subject to any state tax, regulatory fee, or surcharge,
6-3 including premium or maintenance taxes or fees.
6-4 SECTION 2.07. Section 11(b), Texas Public School Employees
6-5 Group Insurance Act (Article 3.50-4, Insurance Code), is amended to
6-6 read as follows:
6-7 (b) A premium or contribution on a policy, insurance
6-8 contract, or agreement authorized as provided by this article is
6-9 not subject to any state tax, regulatory fee, or surcharge,
6-10 including premium or maintenance taxes or fees.
6-11 SECTION 2.08. Section 326.029(a), Local Government Code, is
6-12 amended to read as follows:
6-13 (a) If a majority of the votes received in the election
6-14 favor the creation of the district and the adoption of the sales
6-15 and use tax, the commissioners court shall by resolution or order
6-16 declare that the district is created and shall declare the amount
6-17 of the local sales and use tax adopted and enter the result in its
6-18 minutes.
6-19 SECTION 2.09. Section 326.092(a), Local Government Code, is
6-20 amended to read as follows:
6-21 (a) Chapter 323, Tax Code, to the extent not inconsistent
6-22 with this chapter, governs the imposition, computation,
6-23 administration, and governance of the tax under this subchapter,
6-24 except that Sections 323.101, 323.105, [and] 323.404, and 323.406
6-25 through 323.408, Tax Code, do not apply.
6-26 SECTION 2.10. Section 101.003, Tax Code, is amended by
6-27 adding Subdivision (13) to read as follows:
7-1 (13) "Tax" means a tax, fee, assessment, charge, or
7-2 other amount that the comptroller is authorized to administer.
7-3 SECTION 2.11. Section 111.0041(b), Tax Code, is amended to
7-4 read as follows:
7-5 (b) This section prevails over any other conflicting
7-6 provision of this title [except Section 191.024(b) of this code].
7-7 SECTION 2.12. Section 111.023, Tax Code, is amended to read
7-8 as follows:
7-9 Sec. 111.023. WRITTEN AUTHORIZATION. (a) The comptroller
7-10 may require that a report, return, declaration, claim for refund,
7-11 or other document that is required or permitted to be filed with
7-12 the comptroller and that is submitted by an attorney, accountant,
7-13 or other representative of a taxpayer [person] on behalf of the
7-14 taxpayer [person] be accompanied by express written authorization
7-15 of the taxpayer [person] in whose name or on whose behalf it is
7-16 purportedly submitted.
7-17 (b) An officer, director, or employee of the taxpayer whose
7-18 duties include administering the taxpayer's rights and
7-19 responsibilities with the comptroller may sign the written
7-20 authorization. The authorization must include the title and
7-21 telephone number of the officer, director, or employee who signs
7-22 the authorization for verification by the comptroller.
7-23 (c) The comptroller may impose a requirement of Subsection
7-24 (b) on a taxpayer's assignment of a claim for refund.
7-25 SECTION 2.13. Section 111.104(e), Tax Code, is amended to
7-26 read as follows:
7-27 (e) This section applies to all taxes and license fees
8-1 collected or administered by the comptroller, except the state
8-2 property tax [and those taxes that qualify for refund allowed under
8-3 Section 151.318(g) or (n)].
8-4 SECTION 2.14. Section 111.107, Tax Code, is amended to read
8-5 as follows:
8-6 Sec. 111.107. WHEN REFUND OR CREDIT IS PERMITTED. Except as
8-7 otherwise expressly provided, a person may request a refund or a
8-8 credit or the comptroller may make a refund or issue a credit for
8-9 the overpayment of a tax imposed by this title at any time before
8-10 the expiration of the period during which the comptroller may
8-11 assess a deficiency for the tax and not thereafter unless the
8-12 refund or credit is requested:
8-13 (1) under Subchapter B of Chapter 112 and the refund
8-14 is made or the credit is issued under a court order;
8-15 (2) under the provision of Section 111.104(c)(3)
8-16 applicable to a refund claim filed after a jeopardy or deficiency
8-17 determination becomes final; or
8-18 (3) under Chapter 153, except Section 153.1195(e),
8-19 153.121(d), 153.2225(e), or 153.224(d)[; or]
8-20 [(4) under Section 151.318(g) or (n)].
8-21 SECTION 2.15. Sections 151.310(c) and (e), Tax Code, are
8-22 amended to read as follows:
8-23 (c) An organization that qualifies for an exemption under
8-24 Subsection (a)(1) or (a)(2) of this section, and each bona fide
8-25 chapter of the organization, may hold two tax-free sales or
8-26 auctions under this subsection during a calendar year and each
8-27 tax-free sale or auction may continue for one day only. The sale
9-1 of a taxable item the sales price of which is $5,000 or less by a
9-2 qualified organization or chapter of the organization at a tax-free
9-3 sale or auction is exempted from the sales tax imposed by
9-4 Subchapter C of this chapter, except that a taxable item
9-5 manufactured by or donated to the qualified organization or chapter
9-6 of the organization may be sold tax free regardless of the sales
9-7 price to any purchaser other than the donor. The storage, use, or
9-8 consumption of a taxable item that is acquired from a qualified
9-9 organization or chapter of the organization at a tax-free sale or
9-10 auction and that is exempted under this subsection from the taxes
9-11 imposed by Subchapter C of this chapter is exempted from the use
9-12 tax imposed by Subchapter D of this chapter until the item is
9-13 resold or subsequently transferred.
9-14 (e) A nonprofit hospital or hospital system that qualifies
9-15 for an exemption under Subsection (a)(2) shall provide community
9-16 benefits that include charity care and government-sponsored
9-17 indigent health care [community benefits] as set forth in
9-18 Subchapter D, Chapter 311, Health and Safety Code. [Subdivision
9-19 (1), (2), (3), (4), (5), (6), (7), or (8) below:]
9-20 [(1) charity care and government-sponsored indigent
9-21 health care are provided at a level which is reasonable in relation
9-22 to the community needs, as determined through the community needs
9-23 assessment, the available resources of the hospital or hospital
9-24 system, and the tax-exempt benefits received by the hospital or
9-25 hospital system;]
9-26 [(2) charity care and government-sponsored indigent
9-27 health care are provided in an amount equal to at least four
10-1 percent of the hospital's or hospital system's net patient revenue;]
10-2 [(3) charity care and government-sponsored indigent
10-3 health care are provided in an amount equal to at least 100 percent
10-4 of the hospital's or hospital system's tax-exempt benefits,
10-5 excluding federal income tax;]
10-6 [(4) for tax periods beginning before January 1, 1996,
10-7 charity care and community benefits are provided in a combined
10-8 amount equal to at least five percent of the hospital's or hospital
10-9 system's net patient revenue, provided that charity care and
10-10 government-sponsored indigent health care are provided in an amount
10-11 equal to at least three percent of net patient revenue;]
10-12 [(5) for tax periods beginning after December 31,
10-13 1995, charity care and community benefits are provided in a
10-14 combined amount equal to at least five percent of the hospital's or
10-15 hospital system's net patient revenue, provided that charity care
10-16 and government-sponsored indigent health care are provided in an
10-17 amount equal to at least four percent of net patient revenue;]
10-18 [(6) a nonprofit hospital that has been designated as
10-19 a disproportionate share hospital under the state Medicaid program
10-20 in the current year or in either of the previous two fiscal years
10-21 is considered to have provided a reasonable amount of charity care
10-22 and government-sponsored indigent health care and is considered in
10-23 compliance with the standards provided by this subsection;]
10-24 [(7) a hospital operated on a nonprofit basis that is
10-25 located in a county with a population of less than 50,000 and in
10-26 which the entire county or the population of the entire county has
10-27 been designated as a health professionals shortage area is
11-1 considered to be in compliance with the standards provided by this
11-2 subsection; or]
11-3 [(8) a hospital providing health care services to
11-4 inpatients or outpatients without receiving any payment for
11-5 providing those services from any source, including the patient or
11-6 person legally obligated to support the patient, third-party
11-7 payors, Medicare, Medicaid, or any other state or local indigent
11-8 care program but excluding charitable donations, legacies,
11-9 bequests, or grants or payments for research, is considered to be
11-10 in compliance with the standards provided by this subsection.]
11-11 [For purposes of satisfying Subdivision (5), a hospital or
11-12 hospital system may not change its existing fiscal year unless the
11-13 hospital or hospital system changes its ownership or corporate
11-14 structure as a result of a sale or merger.]
11-15 [For purposes of this subsection, a hospital that satisfies
11-16 Subdivision (1), (6), (7), or (8) shall be excluded in determining
11-17 a hospital system's compliance with the standards provided by
11-18 Subdivision (2), (3), (4), or (5).]
11-19 [For purposes of this subsection, the terms "charity care,"
11-20 "government-sponsored indigent health care," "health care
11-21 organization," "hospital system," "net patient revenue," "nonprofit
11-22 hospital," and "tax-exempt benefits" have the meanings set forth in
11-23 Sections 311.031 and 311.042, Health and Safety Code. A
11-24 determination of the amount of community benefits and charity care
11-25 and government-sponsored indigent health care provided by a
11-26 hospital or hospital system and the hospital's or hospital system's
11-27 compliance with the requirements of this subsection and Section
12-1 311.045, Health and Safety Code, shall be based on the most
12-2 recently completed and audited prior fiscal year of the hospital or
12-3 hospital system.]
12-4 [The providing of charity care and government-sponsored
12-5 indigent health care in accordance with Subdivision (1) shall be
12-6 guided by the prudent business judgment of the hospital which will
12-7 ultimately determine the appropriate level of charity care and
12-8 government-sponsored indigent health care based on the community
12-9 needs, the available resources of the hospital, the tax-exempt
12-10 benefits received by the hospital, and other factors that may be
12-11 unique to the hospital, such as the hospital's volume of Medicare
12-12 and Medicaid patients. These criteria shall not be determinative
12-13 factors, but shall be guidelines contributing to the hospital's
12-14 decision along with other factors which may be unique to the
12-15 hospital. The formulas contained in Subdivisions (2), (3), (4),
12-16 and (5) shall also not be considered determinative of a reasonable
12-17 amount of charity care and government-sponsored indigent health
12-18 care.]
12-19 [The requirements of this subsection shall not apply to the
12-20 extent a hospital or hospital system demonstrates that reductions
12-21 in the amount of community benefits, charity care, and
12-22 government-sponsored indigent health care are necessary to maintain
12-23 financial reserves at a level required by a bond covenant, are
12-24 necessary to prevent the hospital or hospital system from
12-25 endangering its ability to continue operations, or if the hospital
12-26 or hospital system, as a result of a natural or other disaster, is
12-27 required substantially to curtail its operations.]
13-1 [In any fiscal year that a hospital or hospital system,
13-2 through unintended miscalculation, fails to meet any of the
13-3 standards in this subsection, the hospital or hospital system shall
13-4 not lose its tax-exempt status without the opportunity to cure the
13-5 miscalculation in the fiscal year following the fiscal year the
13-6 failure is discovered by both meeting one of the standards and
13-7 providing an additional amount of charity care and
13-8 government-sponsored indigent health care that is equal to the
13-9 shortfall from the previous fiscal year. A hospital or hospital
13-10 system may apply this provision only once every five years.]
13-11 SECTION 2.16. Section 151.3101, Tax Code, is amended by
13-12 adding Subsection (c) to read as follows:
13-13 (c) In this section, "educational organization" includes an
13-14 entity described by Section 61.003(8) or (15), Education Code.
13-15 SECTION 2.17. Section 151.312, Tax Code, is amended to read
13-16 as follows:
13-17 Sec. 151.312. PERIODICALS AND WRITINGS OF RELIGIOUS,
13-18 PHILANTHROPIC, CHARITABLE, HISTORICAL, SCIENTIFIC, AND SIMILAR
13-19 ORGANIZATIONS. Periodicals and writings, including those presented
13-20 on audio tape, videotape, and computer disk, that are published and
13-21 [or] distributed by a religious, philanthropic, charitable,
13-22 historical, scientific, or other similar organization that is not
13-23 operated for profit, but excluding an educational organization, are
13-24 exempted from the taxes imposed by this chapter.
13-25 SECTION 2.18. Section 151.317, Tax Code, is amended to read
13-26 as follows:
13-27 Sec. 151.317. GAS AND ELECTRICITY. (a) Subject to
14-1 Subsection (d), gas [Gas] and electricity are exempted from the
14-2 taxes imposed by this chapter [except] when sold for:
14-3 (1) residential use;
14-4 (2) use in powering equipment exempt under Section
14-5 151.318 by a person processing tangible personal property for sale
14-6 as tangible personal property, other than preparation or storage of
14-7 food for immediate consumption;
14-8 (3) use in lighting, cooling, and heating in the
14-9 manufacturing area during the actual manufacturing or processing of
14-10 tangible personal property for sale as tangible personal property,
14-11 other than preparation or storage of food for immediate
14-12 consumption;
14-13 (4) use directly in exploring for, producing, or
14-14 transporting, a material extracted from the earth;
14-15 (5) use in agriculture, including dairy or poultry
14-16 operations and pumping for farm or ranch irrigation;
14-17 (6) use directly in electrical processes, such as
14-18 electroplating, electrolysis, and cathodic protection;
14-19 (7) use directly in the off-wing processing, overhaul,
14-20 or repair of a jet turbine engine or its parts for a certificated
14-21 or licensed carrier of persons or property;
14-22 (8) use directly in providing, under contracts with or
14-23 on behalf of the United States government or foreign governments,
14-24 defense or national security-related electronics, classified
14-25 intelligence data processing and handling systems, or
14-26 defense-related platform modifications or upgrades; or
14-27 (9) a direct or indirect use, consumption, or loss of
15-1 electricity by an electric utility engaged in the purchase of
15-2 electricity for resale [commercial use].
15-3 (b) The sale, production, distribution, lease, or rental of,
15-4 and the use, storage, or other consumption in this state of, gas
15-5 and electricity sold for the uses listed in Subsection (a), [except
15-6 when sold for residential or commercial use,] are exempted from the
15-7 taxes imposed by a municipality [city] under Chapter 321 except
15-8 [the Local Sales and Use Tax Act, unless sales for residential use
15-9 are further exempted by the city] as provided by Section 321.105
15-10 [the Local Sales and Use Tax Act].
15-11 (c) In this section, "residential [:]
15-12 [(1) "Residential] use" means use:
15-13 (1) [(A)] in a family dwelling or in a multifamily
15-14 apartment or housing complex or building or in a part of a building
15-15 occupied as a home or residence when the use is by the owner of the
15-16 dwelling, apartment, complex, or building or part of the building
15-17 occupied; or
15-18 (2) [(B)] in a dwelling, apartment, house, or building
15-19 or part of a building occupied as a home or residence when the use
15-20 is by a tenant who occupies the dwelling, apartment, house, or
15-21 building or part of a building under a contract for an express
15-22 initial term for longer than 29 consecutive days.
15-23 (d) To qualify for the exemptions in Subsections (a)(2)-(8),
15-24 the gas or electricity must be sold to the person using the gas or
15-25 electricity in the exempt manner. For purposes of this subsection,
15-26 the use of gas or electricity in an exempt manner by an independent
15-27 contractor engaged by the purchaser of the gas or electricity to
16-1 perform one or more of the exempt activities identified in
16-2 Subsections (a)(2)-(8) is considered use by the purchaser of the
16-3 gas or electricity.
16-4 (e) Natural gas or electricity used during a regular monthly
16-5 billing period for both exempt and taxable purposes under a single
16-6 meter is totally exempt or taxable based on the predominant use of
16-7 the natural gas or electricity measured by that meter. The
16-8 comptroller may prescribe by rule the procedures by which a
16-9 purchaser must establish the predominant use of the natural gas or
16-10 electricity.
16-11 [(2) "Commercial use" means use by a person engaged in
16-12 selling, warehousing, or distributing a commodity or a professional
16-13 or personal service, but does not include:]
16-14 [(A) use by a person engaged in:]
16-15 [(i) processing tangible personal property
16-16 for sale as tangible personal property, other than preparation or
16-17 storage of food for immediate consumption;]
16-18 [(ii) exploring for, producing, or
16-19 transporting, a material extracted from the earth;]
16-20 [(iii) agriculture, including dairy or
16-21 poultry operations and pumping for farm or ranch irrigation;]
16-22 [(iv) electrical processes such as
16-23 electroplating, electrolysis, and cathodic protection;]
16-24 [(v) the off-wing processing, overhaul, or
16-25 repair of a jet turbine engine or its parts for a certificated or
16-26 licensed carrier of persons or property; or]
16-27 [(vi) providing, under contracts with or
17-1 on behalf of the United States government or foreign governments,
17-2 defense or national security-related electronics, classified
17-3 intelligence data processing and handling systems, or
17-4 defense-related platform modifications or upgrades; or]
17-5 [(B) a direct or indirect use, consumption, or
17-6 loss of electricity by an electric utility engaged in the purchase
17-7 of electricity for resale.]
17-8 SECTION 2.19. Section 151.318, Tax Code, is amended by
17-9 amending Subsections (a), (c), (o), (q), and (s), and adding
17-10 Subsections (f) and (t) to read as follows:
17-11 (a) The following items are exempted from the taxes imposed
17-12 by this chapter if sold, leased, or rented to, or stored, used, or
17-13 consumed by a manufacturer:
17-14 (1) tangible personal property that will become an
17-15 ingredient or component part of tangible personal property
17-16 manufactured, processed, or fabricated for ultimate sale;
17-17 (2) tangible personal property directly used or
17-18 consumed in or during the actual manufacturing, processing, or
17-19 fabrication of tangible personal property for ultimate sale if the
17-20 use or consumption of the property is necessary or essential to the
17-21 manufacturing, processing, or fabrication operation and directly
17-22 makes or causes a chemical or physical change to:
17-23 (A) the product being manufactured, processed,
17-24 or fabricated for ultimate sale; or
17-25 (B) any intermediate or preliminary product that
17-26 will become an ingredient or component part of the product being
17-27 manufactured, processed, or fabricated for ultimate sale;
18-1 (3) services performed directly on the product being
18-2 manufactured prior to its distribution for sale and for the purpose
18-3 of making the product more marketable;
18-4 (4) actuators, steam production equipment and its
18-5 fuel, in-process flow through tanks, cooling towers, generators,
18-6 heat exchangers, transformers and the switches, breakers, capacitor
18-7 banks, regulators, relays, reclosers, fuses, interruptors,
18-8 reactors, arrestors, resistors, insulators, instrument
18-9 transformers, and telemetry units that are related to the
18-10 transformers, electronic control room equipment, computerized
18-11 control units, pumps, compressors, and hydraulic units, that are
18-12 used to power, supply, support, or control equipment that qualifies
18-13 for exemption under Subdivision (2) or (5) or to generate
18-14 electricity, chilled water, or steam for ultimate sale;
18-15 transformers located at an electric generating facility that
18-16 increase the voltage of electricity generated for ultimate sale,
18-17 the electrical cable that carries the electricity from the electric
18-18 generating equipment to the step-up transformers, and the switches,
18-19 breakers, capacitor banks, regulators, relays, reclosers, fuses,
18-20 interruptors, reactors, arrestors, resistors, insulators,
18-21 instrument transformers, and telemetry units that are related to
18-22 the step-up transformers; and transformers that decrease the
18-23 voltage of electricity generated for ultimate sale and the
18-24 switches, breakers, capacitor banks, regulators, relays, reclosers,
18-25 fuses, interruptors, reactors, arrestors, resistors, insulators,
18-26 instrument transformers, and telemetry units that are related to
18-27 the step-down transformers; [and]
19-1 (5) tangible personal property [machinery, equipment,
19-2 and replacement parts or accessories] used or consumed in the
19-3 actual manufacturing, processing, or fabrication of tangible
19-4 personal property for ultimate sale if the [their] use or
19-5 consumption of the property is necessary and essential to a
19-6 pollution control process;
19-7 (6) lubricants, chemicals, chemical compounds, gases,
19-8 or liquids that are used or consumed during the actual
19-9 manufacturing, processing, or fabrication of tangible personal
19-10 property for ultimate sale if their use or consumption is necessary
19-11 and essential to prevent the decline, failure, lapse, or
19-12 deterioration of equipment exempted by this section;
19-13 (7) gases used on the premises of a manufacturing
19-14 plant to prevent contamination of raw material or product, or to
19-15 prevent a fire, explosion, or other hazardous or environmentally
19-16 damaging situation at any stage in the manufacturing process or in
19-17 loading or storage of the product or raw material on premises;
19-18 (8) tangible personal property used or consumed during
19-19 the actual manufacturing, processing, or fabrication of tangible
19-20 personal property for ultimate sale if the use or consumption of
19-21 the property is necessary and essential to a quality control
19-22 process;
19-23 (9) safety apparel or work clothing that is used
19-24 during the actual manufacturing, processing, or fabrication of
19-25 tangible personal property for ultimate sale if:
19-26 (A) the manufacturing process would not be
19-27 possible without the use of the apparel or clothing; and
20-1 (B) the apparel or clothing is not resold to the
20-2 employee;
20-3 (10) tangible personal property used or consumed in
20-4 the actual manufacturing, processing, or fabrication of tangible
20-5 personal property for ultimate sale if the use or consumption of
20-6 the property is necessary and essential to comply with federal,
20-7 state, or local laws or rules that establish requirements related
20-8 to public health; and
20-9 (11) tangible personal property specifically installed
20-10 to:
20-11 (A) reduce water use and wastewater flow volumes
20-12 from the manufacturing, processing, fabrication, or repair
20-13 operation;
20-14 (B) reuse and recycle wastewater streams
20-15 generated within the manufacturing, processing, fabrication, or
20-16 repair operation; or
20-17 (C) treat wastewater from another industrial or
20-18 municipal source for the purpose of replacing existing freshwater
20-19 sources in the manufacturing, processing, fabrication, or repair
20-20 operation.
20-21 (c) The exemption does not include:
20-22 (1) intraplant transportation equipment, including
20-23 intraplant transportation equipment used to move a product or raw
20-24 material in connection with the manufacturing process and
20-25 specifically including all piping and conveyor systems, provided
20-26 that the following remain eligible for the exemption:
20-27 (A) piping or conveyor systems that are [is] a
21-1 component part of a single item of manufacturing equipment or
21-2 pollution control equipment eligible for the exemption under
21-3 Subsection (a)(2), (a)(4), or (a)(5);
21-4 (B) piping through which the product or an
21-5 intermediate or preliminary product that will become an ingredient
21-6 or component part of the product is recycled or circulated in a
21-7 loop between the single item of manufacturing equipment and the
21-8 ancillary equipment that supports only that single item of
21-9 manufacturing equipment if the single item of manufacturing
21-10 equipment and the ancillary equipment operate together to perform a
21-11 specific step in the manufacturing process; and
21-12 (C) piping through which the product or an
21-13 intermediate or preliminary product that will become an ingredient
21-14 or component part of the product is recycled back to another single
21-15 item of manufacturing equipment and its ancillary equipment in the
21-16 same manufacturing process [remains eligible for the exemption];
21-17 (2) [maintenance or janitorial supplies or equipment
21-18 or other machinery, equipment, materials, or supplies that are used
21-19 incidentally in a manufacturing, processing, or fabrication
21-20 operation;]
21-21 [(3)] hand tools;
21-22 (3) maintenance supplies not otherwise exempted under
21-23 this section, maintenance equipment, janitorial supplies or
21-24 equipment, [(4)] office equipment or supplies, equipment or
21-25 supplies used in sales or distribution activities, research or
21-26 development of new products, or transportation activities[, or
21-27 other tangible personal property not used in an actual
22-1 manufacturing, processing, or fabrication operation]; [or]
22-2 (4) [(5)] machinery and equipment or supplies to the
22-3 extent not otherwise exempted under this section used to maintain
22-4 or store tangible personal property; or
22-5 (5) tangible personal property used in the
22-6 transmission or distribution of electricity, including
22-7 transformers, cable, switches, breakers, capacitor banks,
22-8 regulators, relays, reclosers, fuses, interruptors, reactors,
22-9 arrestors, resistors, insulators, instrument transformers, and
22-10 telemetry units not otherwise exempted under this section, and
22-11 lines, conduit, towers, and poles.
22-12 (f) For purposes of Subsection (c)(1), piping through which
22-13 material is transported forward from one single item of
22-14 manufacturing equipment and its ancillary support equipment to
22-15 another single item of manufacturing equipment and its ancillary
22-16 support equipment is not considered a component part of a single
22-17 item of manufacturing equipment and is not exempt. An integrated
22-18 group of manufacturing and processing machines and ancillary
22-19 equipment that operate together to create or produce the product or
22-20 an intermediate or preliminary product that will become an
22-21 ingredient or component part of the product is not a single item of
22-22 manufacturing equipment.
22-23 (o) The production of a publication for the dissemination of
22-24 news of a general character and of a general interest that is
22-25 printed on newsprint and distributed to the general public free of
22-26 charge at a daily, weekly, or other short interval is considered
22-27 "manufacturing" for purposes of [Subsections (d)-(m) of] this
23-1 section.
23-2 (q) For purposes of Subsection (b), "semiconductor
23-3 fabrication cleanrooms and equipment" means all tangible personal
23-4 property, without regard to whether the property is affixed to or
23-5 incorporated into realty, used in connection with the
23-6 manufacturing, processing, or fabrication in a cleanroom
23-7 environment of a semiconductor product, without regard to whether
23-8 the property is actually contained in the cleanroom environment.
23-9 The term includes integrated systems, fixtures, and piping, all
23-10 property necessary or adapted to reduce contamination or to control
23-11 airflow, temperature, humidity, chemical purity, or other
23-12 environmental conditions or manufacturing tolerances, and
23-13 production equipment and machinery. The term does not include the
23-14 building or a permanent, nonremovable component of the building,
23-15 that houses the cleanroom environment. The term includes moveable
23-16 cleanroom partitions and cleanroom lighting. "Semiconductor
23-17 fabrication cleanrooms and equipment" are not "intraplant
23-18 ["interplant] transportation equipment" [or "used incidentally in a
23-19 manufacturing, processing, or fabrication operation"] as that term
23-20 is [those terms are] used in Subsection [Subsections] (c)(1) [and
23-21 (c)(2)].
23-22 (s) The following do not apply to the semiconductor
23-23 fabrication cleanrooms and equipment in Subsection (q):
23-24 (1) limitations in Subsection (a)(2) that refer to
23-25 tangible personal property directly causing chemical and physical
23-26 changes to the product being manufactured, processed, or fabricated
23-27 for ultimate sale;
24-1 (2) Subsection (c)(1); and
24-2 (3) Subsection (c)(4)[(5)].
24-3 (t) In addition to the other items exempted under this
24-4 section, pre-press machinery, equipment, and supplies, including
24-5 computers, cameras, film, film developing chemicals, veloxes,
24-6 plate-making machinery, plate metal, litho negatives, color
24-7 separation negatives, proofs of color negatives, production art
24-8 work, and typesetting or composition proofs, that are necessary and
24-9 essential to and used in connection with the printing process are
24-10 exempted from the tax imposed by this chapter if they are purchased
24-11 by a person engaged in:
24-12 (1) printing or imprinting tangible personal property
24-13 for sale; or
24-14 (2) producing a publication for the dissemination of
24-15 news of a general character and of a general interest that is
24-16 printed on newsprint and distributed to the general public free of
24-17 charge at a daily, weekly, or other short interval.
24-18 SECTION 2.20. Subchapter H, Chapter 151, Tax Code, is
24-19 amended by adding Section 151.3185 to read as follows:
24-20 Sec. 151.3185. PROPERTY USED IN THE PRODUCTION OF MOTION
24-21 PICTURES OR VIDEO OR AUDIO RECORDINGS AND BROADCASTS. (a) The
24-22 sale, lease, or rental or storage, use, or other consumption of the
24-23 following items are exempted from the taxes imposed by this
24-24 chapter:
24-25 (1) tangible personal property that will become an
24-26 ingredient or component part of:
24-27 (A) a motion picture or video or audio
25-1 recording, a copy of which is sold or offered for ultimate sale,
25-2 licensed, distributed, broadcast, or otherwise exhibited; or
25-3 (B) a broadcast by a producer of cable programs
25-4 or by a radio or television station licensed by the Federal
25-5 Communications Commission;
25-6 (2) tangible personal property that is necessary or
25-7 essential to and used or consumed in or during:
25-8 (A) the production of a motion picture or video
25-9 or audio recording, a copy of which is sold or offered for ultimate
25-10 sale, licensed, distributed, broadcast, or otherwise exhibited; or
25-11 (B) the production of a broadcast by or for a
25-12 cable program producer or by or for a radio or television station
25-13 licensed by the Federal Communications Commission; and
25-14 (3) except as provided by Subsection (c), services
25-15 that are necessary and essential to and used directly in a
25-16 production described by Subdivision (2)(A) or (B).
25-17 (b) The exemption includes:
25-18 (1) cameras, film, and film developing chemicals that
25-19 are necessary and essential to and used or consumed in a production
25-20 described by Subsection (a)(2)(A) or (B);
25-21 (2) lights, props, sets, teleprompters, microphones,
25-22 digital equipment, special effects equipment and supplies, and
25-23 other equipment that is necessary and essential to and used or
25-24 consumed directly in a production described by Subsection (a)(2)(A)
25-25 or (B); and
25-26 (3) audio or video routing switchers located in a
25-27 studio that are necessary and essential to and used or consumed
26-1 directly in a production described by Subsection (a)(2)(A) or (B).
26-2 (c) The exemption does not include:
26-3 (1) office equipment or supplies;
26-4 (2) maintenance or janitorial equipment or supplies;
26-5 (3) machinery, equipment, or supplies used in sales,
26-6 transmission, or transportation activities;
26-7 (4) machinery, equipment, or supplies used in
26-8 distribution activities, unless otherwise exempted by this section;
26-9 (5) taxable items that are used incidentally in a
26-10 production described by Subsection (a)(2)(A) or (B); or
26-11 (6) the following taxable items, regardless of whether
26-12 they are used incidentally in a production described by Subsection
26-13 (a)(2)(A) or (B):
26-14 (A) telecommunications equipment and services;
26-15 (B) transmission equipment;
26-16 (C) security services;
26-17 (D) motor vehicle parking services; and
26-18 (E) food ready for immediate consumption.
26-19 (d) A production described by Subsection (a)(2)(A) or (B)
26-20 does not include a production for broadcast that is not intended to
26-21 be broadcast to either the general public or to cable television
26-22 service subscribers or paying customers.
26-23 SECTION 2.21. Section 151.321(a), Tax Code, is amended to
26-24 read as follows:
26-25 (a) A taxable item sold by a qualified student organization
26-26 and for which the sales price is $5,000 or less, is exempted from
26-27 the taxes imposed by Subchapter C, except that a taxable item
27-1 manufactured by or donated to the organization is exempt from the
27-2 taxes imposed by Subchapter C regardless of sales price unless sold
27-3 to the donor, if the student organization:
27-4 (1) sells the item at a sale that may last for one day
27-5 only and the primary purpose of which is to raise funds for the
27-6 organization; and
27-7 (2) holds not more than one sale described by
27-8 Subdivision (1) each month for which an exemption is claimed for an
27-9 item sold.
27-10 SECTION 2.22. Section 151.350(d), Tax Code, is amended to
27-11 read as follows:
27-12 (d) In this section, "restore" means:
27-13 (1) launder, [or] clean, repair, treat, or apply
27-14 protective chemicals to an item, to the extent the service is a
27-15 personal service as defined in Section 151.0045; and
27-16 (2) repair, restore, or remodel, to the extent the
27-17 service is:
27-18 (A) a real property repair or remodeling service
27-19 as defined in Section 151.0047; or
27-20 (B) defined as a taxable service in Section
27-21 151.0101(a)(5) [151.0101(5)].
27-22 SECTION 2.23. Subchapter H, Chapter 151, Tax Code, is
27-23 amended by adding Section 151.354 to read as follows:
27-24 Sec. 151.354. SERVICES BY EMPLOYEES OF PROPERTY MANAGEMENT
27-25 COMPANIES. (a) There are exempted from the taxes imposed by this
27-26 chapter services performed by an employee of a property management
27-27 company if:
28-1 (1) the employee is permanently assigned to one rental
28-2 property by the property management company;
28-3 (2) the property management company is reimbursed on a
28-4 dollar-for-dollar basis for the services provided; and
28-5 (3) the employee remains assigned to that property
28-6 while employed by successive owners or management companies.
28-7 (b) This exemption does not apply to services performed by
28-8 an employee for properties other than the one to which the employee
28-9 is permanently assigned.
28-10 (c) For purposes of this section, a person is an employee of
28-11 a property management company if either the property management
28-12 company or an affiliate of the property management company employs
28-13 the person.
28-14 (d) The property management company must:
28-15 (1) be contractually obligated to the property owner
28-16 to exercise control over the activities of the employee providing
28-17 the service; and
28-18 (2) manage and direct the employee's day-to-day
28-19 activities.
28-20 (e) The property management company or the affiliate must
28-21 pay tax on the taxable items purchased and provided to employees
28-22 providing services on managed property.
28-23 (f) In this section, "property management company" means a
28-24 person:
28-25 (1) who, for consideration, operates and manages all
28-26 the activities at a property held by the owner for purposes of
28-27 rental, including an office building, mall, or other retail or
29-1 office complex, an apartment complex, a duplex, or a home; and
29-2 (2) whose responsibilities include securing tenants,
29-3 hiring, and supervising employees for operation or upkeep of the
29-4 property, receiving and applying revenues, and incurring and paying
29-5 expenses derived from the operation of the property as directed by
29-6 the owner.
29-7 (g) In this section, a corporation, limited liability
29-8 company, partnership, trust, or estate is an affiliate of the
29-9 property management company if an 80 percent ownership interest in
29-10 the property management company or the corporation, limited
29-11 liability company, partnership, trust, or estate is held by the
29-12 other, or if a third person has an 80 percent ownership interest
29-13 either directly or indirectly in both the property management
29-14 company and the corporation, limited liability company,
29-15 partnership, trust, or estate.
29-16 SECTION 2.24. Section 151.426, Tax Code, is amended by
29-17 amending Subsection (c) and adding Subsections (e), (f), (g), (h),
29-18 (i), and (j) to read as follows:
29-19 (c) Subject to Subsection (e), a [A] retailer or any person
29-20 who extends credit to a purchaser under a retailer's private label
29-21 credit agreement, or an assignee or affiliate of either, is
29-22 entitled to credit or reimbursement for taxes paid on the portion
29-23 of:
29-24 (1) an account determined to be worthless and actually
29-25 charged off for federal income tax purposes; or
29-26 (2) the remaining unpaid sales price of a taxable item
29-27 when the item is repossessed under a conditional sales contract.
30-1 (e) A person is entitled to a credit or reimbursement
30-2 provided by Subsection (c) only if:
30-3 (1) the retailer:
30-4 (A) has a valid sales or use tax permit; and
30-5 (B) remits the tax for which the credit or
30-6 reimbursement is sought;
30-7 (2) all payments on an account are prorated between
30-8 taxable and nontaxable charges; and
30-9 (3) the retailer or person claiming the credit or
30-10 reimbursement provides detailed records outlining:
30-11 (A) the amount the purchaser contracted to pay;
30-12 (B) taxable and nontaxable charges;
30-13 (C) the tax collected and remitted;
30-14 (D) the unpaid portion of the sales price
30-15 assigned; and
30-16 (E) the taxpayer number of the seller who
30-17 collected and remitted the tax.
30-18 (f) A person whose volume and character of uncollectible
30-19 accounts warrants an alternative method of substantiating the
30-20 reimbursement or credit may:
30-21 (1) maintain records other than the records specified
30-22 in Subsection (e) if:
30-23 (A) the records fairly and equitably apportion
30-24 taxable and nontaxable elements of a bad debt and compute the
30-25 amount of sales tax imposed and remitted with respect to the
30-26 taxable charges remaining unpaid on the debt; and
30-27 (B) the comptroller approves the procedures
31-1 used; or
31-2 (2) implement a system to report its future tax
31-3 responsibilities based on a historical percentage calculated from a
31-4 sample of transactions if:
31-5 (A) the system utilizes records provided by the
31-6 person claiming the credit or reimbursement; and
31-7 (B) the comptroller approves the procedures
31-8 used.
31-9 (g) The comptroller may revoke the authorization to report
31-10 under Subsection (f)(2) if the comptroller determines that the
31-11 percentage being used is no longer representative because of:
31-12 (1) a change in law, including a change in the
31-13 interpretation of an existing law or rule; or
31-14 (2) a change in the taxpayer's business operations.
31-15 (h) A person claiming a credit or reimbursement under this
31-16 section shall remit tax on any payments received on an account that
31-17 has been written off and claimed as a bad debt.
31-18 (i) A person who is not a retailer may claim a credit or
31-19 reimbursement authorized by Subsection (c) only for taxes imposed
31-20 by Section 151.051 or 151.101.
31-21 (j) For purposes of this section, "affiliate" means any
31-22 entity or entities that would be classified as a member of an
31-23 affiliated group under 26 U.S.C. Section 1504.
31-24 SECTION 2.25. Sections 151.429(d) and (g), Tax Code, are
31-25 amended to read as follows:
31-26 (d) To receive a refund under this section, an enterprise
31-27 project must apply to the comptroller for the refund. The Texas
32-1 Department of Economic Development [department of commerce] shall
32-2 provide the comptroller with the assistance that the comptroller
32-3 requires in administering this section.
32-4 (g) The refund provided by this section is conditioned on
32-5 the enterprise project maintaining at least the same level of
32-6 employment of qualified employees as existed at the time it
32-7 qualified for a refund for a period of three years from that date.
32-8 The Texas Department of Economic Development [Commerce] shall
32-9 annually certify to the comptroller and the Legislative Budget
32-10 Board whether that level of employment of qualified employees has
32-11 been maintained. On the Texas Department of Economic Development
32-12 [Commerce] certifying that such a level has not been maintained,
32-13 the comptroller shall assess that portion of the refund
32-14 attributable to any such decrease in employment, including penalty
32-15 and interest from the date of the refund.
32-16 SECTION 2.26. Section 151.429(e)(1), Tax Code, is amended to
32-17 read as follows:
32-18 (1) "Enterprise project" means a person designated by
32-19 the Texas Department of Economic Development [Commerce] as an
32-20 enterprise project under Chapter 2303, Government Code.
32-21 SECTION 2.27. Sections 151.4291(d) and (g), Tax Code, are
32-22 amended to read as follows:
32-23 (d) To receive a refund under this section, a defense
32-24 readjustment project must apply to the comptroller for the refund.
32-25 The Texas Department of Economic Development [Commerce] shall
32-26 provide the comptroller with the assistance that the comptroller
32-27 requires in administering this section.
33-1 (g) The refund provided by this section is conditioned on
33-2 the defense readjustment project maintaining at least the same
33-3 level of employment of qualified employees as existed at the time
33-4 it qualified for a refund for a period of three years from that
33-5 date. The Texas Department of Economic Development [Commerce]
33-6 shall annually certify to the comptroller and the Legislative
33-7 Budget Board whether that level of employment of qualified
33-8 employees has been maintained. On the Texas Department of Economic
33-9 Development [Commerce] certifying that such a level has not been
33-10 maintained, the comptroller shall assess that portion of the refund
33-11 attributable to any such decrease in employment, including penalty
33-12 and interest from the date of the refund.
33-13 SECTION 2.28. Section 151.4291(e)(1), Tax Code, is amended
33-14 to read as follows:
33-15 (1) "Defense readjustment project" means a person
33-16 designated by the Texas Department of Economic Development
33-17 [Commerce] as a defense readjustment project under Chapter 2310,
33-18 Government Code.
33-19 SECTION 2.29. Section 151.431(a), Tax Code, is amended to
33-20 read as follows:
33-21 (a) A qualified business operating in the enterprise zone's
33-22 jurisdiction for at least three consecutive years may apply for and
33-23 be granted a onetime refund of sales and use tax paid by the
33-24 qualified business after certification of the qualified business as
33-25 provided by Subsection (b) of this section to a vendor or directly
33-26 to the state for the purchase of equipment or machinery sold to the
33-27 business for use in an enterprise zone if the governing body or
34-1 bodies certify to the Texas Department of Economic Development
34-2 [Commerce] that the business is retaining 10 or more jobs held by
34-3 qualified employees during the year. For the purposes of this
34-4 subsection "job" means an existing employment position of a
34-5 qualified business that has provided employment to a qualified
34-6 employee of at least 1,820 hours annually.
34-7 SECTION 2.30. Section 152.002, Tax Code, is amended by
34-8 adding Subsection (d) to read as follows:
34-9 (d) A person who holds a lessor license under the Texas
34-10 Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
34-11 Civil Statutes) or is specifically not required to obtain a lessor
34-12 license under Section 4.01(a) of that Act may deduct the fair
34-13 market value of a replaced motor vehicle that has been leased for
34-14 longer than 180 days and is titled to another person if:
34-15 (1) either person:
34-16 (A) holds a beneficial ownership interest in the
34-17 other person of at least 80 percent; or
34-18 (B) acquires all of its vehicles exclusively
34-19 from franchised dealers whose franchisor shares common ownership
34-20 with the other person; and
34-21 (2) the replaced motor vehicle is offered for sale.
34-22 SECTION 2.31. Section 152.041, Tax Code, is amended by
34-23 adding Subsection (e) to read as follows:
34-24 (e) If a motor vehicle title applicant has paid the tax to
34-25 the seller who is required by this chapter to collect the tax and
34-26 the seller has failed to remit the tax to the county tax
34-27 assessor-collector, the tax assessor-collector may accept
35-1 application for title to the motor vehicle without the payment of
35-2 additional tax by the applicant. Before title to the motor vehicle
35-3 may be issued under these circumstances, the motor vehicle title
35-4 applicant must present satisfactory documentation to the tax
35-5 assessor-collector that the tax was paid. The county tax
35-6 assessor-collector shall notify the comptroller in writing of the
35-7 seller's failure to remit the tax. The notice must:
35-8 (1) be made before the 31st day after the date the
35-9 application for title is accepted;
35-10 (2) contain the name and address of the seller; and
35-11 (3) include any documentation of the payment of the
35-12 tax provided to the county tax assessor-collector by the motor
35-13 vehicle title applicant.
35-14 SECTION 2.32. Sections 153.117(a), (b), (d), and (h), Tax
35-15 Code, are amended to read as follows:
35-16 (a) A distributor shall keep a record showing the number of
35-17 gallons of:
35-18 (1) all gasoline inventories on hand at the first of
35-19 each month;
35-20 (2) all gasoline refined, compounded, or blended;
35-21 (3) all gasoline purchased or received, showing the
35-22 name of the seller and date of each purchase or receipt;
35-23 (4) all gasoline sold, distributed, or used, showing
35-24 the name of the purchaser and the date of the sale or use; and
35-25 (5) all gasoline lost by fire, theft, or [other]
35-26 accident.
35-27 (b) A dealer shall keep a record showing the number of
36-1 gallons of:
36-2 (1) gasoline inventories on hand at the first of each
36-3 month;
36-4 (2) all gasoline purchased or received, showing the
36-5 name of the seller and the date of each purchase or receipt;
36-6 (3) all gasoline sold or used, showing the date of the
36-7 sale or use; and
36-8 (4) all gasoline lost by fire, theft, or [other]
36-9 accident.
36-10 (d) An aviation fuel dealer shall keep a record showing the
36-11 number of gallons of:
36-12 (1) all gasoline inventories on hand at the first of
36-13 each month;
36-14 (2) all gasoline purchased or received, showing the
36-15 name of the seller and date of each purchase or receipt;
36-16 (3) all gasoline sold or used in aircraft or aircraft
36-17 servicing equipment; and
36-18 (4) all gasoline lost by fire, theft, or [other]
36-19 accident.
36-20 (h) A gasoline jobber shall keep a record showing the number
36-21 of gallons of:
36-22 (1) all gasoline inventories on hand at the first of
36-23 each month;
36-24 (2) all gasoline purchased or received, showing the
36-25 name of the seller and date of each purchase or receipt;
36-26 (3) all gasoline sold, distributed, or used, showing
36-27 the name of the purchaser and the date of the sale or use; and
37-1 (4) all gasoline lost by fire, theft, or [other]
37-2 accident.
37-3 SECTION 2.33. Sections 153.119(a) and (e), Tax Code, are
37-4 amended to read as follows:
37-5 (a) A person who exports, sells to the federal government,
37-6 to a public school district in this state, or to a commercial
37-7 transportation company for exclusive use in providing public school
37-8 transportation services to a school district under Section 34.008,
37-9 Education Code, without having added the amount of the tax imposed
37-10 by this chapter to his selling price, loses by fire, theft, or
37-11 [other] accident, or uses gasoline for the purpose of operating or
37-12 propelling a motorboat, tractor used for agricultural purposes, or
37-13 stationary engine, or for another purpose except in a vehicle
37-14 operated or intended to be operated on the public highways of this
37-15 state, and who has paid the tax imposed on gasoline by this chapter
37-16 either directly or indirectly is, when the person has complied with
37-17 the invoice and filing provisions of this section and the rules of
37-18 the comptroller, entitled to reimbursement of the tax paid by him,
37-19 less a filing fee and any amount allowed distributors[, wholesalers
37-20 or jobbers, dealers, or others] under Section 153.105(e)
37-21 [153.105(c)] of this code. A public school district that has paid
37-22 the tax imposed under this chapter on gasoline used by the district
37-23 or a commercial transportation company that has paid the tax
37-24 imposed under this chapter on gasoline used by the company
37-25 exclusively to provide public school transportation services to a
37-26 school district under Section 34.008, Education Code, is entitled
37-27 to reimbursement of the amount of the tax paid in the same manner
38-1 and subject to the same procedures as other exempted users.
38-2 (e) A person who exports or loses by fire, theft, or [other]
38-3 accident 100 or more gallons of gasoline on which the tax has been
38-4 paid, or sells gasoline in any quantity to the United States
38-5 government for the exclusive use of that government on which the
38-6 tax has been paid, may file a claim for a refund of the net tax
38-7 paid to the state in the manner provided by this chapter or as the
38-8 comptroller may direct.
38-9 SECTION 2.34. Section 153.121(a), Tax Code, is amended to
38-10 read as follows:
38-11 (a) Except as provided by this section, a claim for a refund
38-12 must be filed with the comptroller within one year after the first
38-13 day of the calendar month following the purchase, use, delivery,
38-14 export, or loss by fire, theft, or [other] accident of gasoline,
38-15 whichever period expires latest.
38-16 SECTION 2.35. Section 153.206, Tax Code, is amended by
38-17 adding Subsection (j) to read as follows:
38-18 (j) In each subsequent sale of diesel fuel on which the tax
38-19 has been collected, the amount of the tax shall be added to the
38-20 selling price so that the tax is paid ultimately by the person
38-21 using or consuming the diesel fuel for the purpose of propelling a
38-22 vehicle on the public highways of this state.
38-23 SECTION 2.36. Sections 153.219(a), (b), (c), (d), and (i),
38-24 Tax Code, are amended to read as follows:
38-25 (a) A supplier shall keep a record showing the number of
38-26 gallons of:
38-27 (1) all diesel fuel inventories on hand at the first
39-1 of each month;
39-2 (2) all diesel fuel refined, compounded, or blended;
39-3 (3) all diesel fuel purchased or received, showing the
39-4 name of the seller, and the date of each purchase or receipt;
39-5 (4) all diesel fuel sold, distributed, or used showing
39-6 the name of the purchaser and the date of sale, distribution, or
39-7 use; and
39-8 (5) all diesel fuel lost by fire, theft, or [other]
39-9 accident.
39-10 (b) A dealer shall keep a record showing the number of
39-11 gallons of:
39-12 (1) all diesel fuel inventories on hand at the first
39-13 of each month;
39-14 (2) all diesel fuel purchased or received, showing the
39-15 name of the seller, the date of each purchase or receipt;
39-16 (3) all diesel fuel sold, distributed, or used; and
39-17 (4) all diesel fuel lost by fire, theft, or [other]
39-18 accident.
39-19 (c) A bonded user or other user with nonhighway equipment
39-20 uses who files a claim for a refund shall keep a record showing the
39-21 number of gallons of:
39-22 (1) inventories of all diesel fuel on hand at the
39-23 first of each month;
39-24 (2) all diesel fuel purchased or received, showing the
39-25 name of the seller and the date of each purchase;
39-26 (3) all diesel fuel deliveries into the fuel supply
39-27 tanks of motor vehicles;
40-1 (4) diesel fuel used for other purposes, showing the
40-2 purpose for which used; and
40-3 (5) all diesel fuel lost by fire, theft, or [other]
40-4 accident.
40-5 (d) An aviation fuel dealer shall keep a record showing the
40-6 number of gallons of:
40-7 (1) all diesel fuel inventories on hand at the first
40-8 of each month;
40-9 (2) all diesel fuel purchased or received, showing the
40-10 name of the seller and the date of each purchase or receipt;
40-11 (3) all diesel fuel sold, distributed, or used in
40-12 aircraft or aircraft servicing equipment; and
40-13 (4) diesel fuel lost by fire, theft, or [other]
40-14 accident.
40-15 (i) A diesel fuel jobber shall keep a record showing the
40-16 number of gallons of:
40-17 (1) all diesel fuel inventories on hand at the first
40-18 of each month;
40-19 (2) all diesel fuel purchased or received, showing the
40-20 name of the seller and date of each purchase or receipt;
40-21 (3) all diesel fuel sold, distributed, or used,
40-22 showing the name of the purchaser and the date of the sale or use;
40-23 and
40-24 (4) all diesel fuel lost by fire, theft, or [other]
40-25 accident.
40-26 SECTION 2.37. Section 153.222(e), Tax Code, is amended to
40-27 read as follows:
41-1 (e) A person who exports or loses by fire, theft, or [other]
41-2 accident 100 or more gallons of diesel fuel on which the tax has
41-3 been paid, or who sells diesel fuel in any quantity to the United
41-4 States for its exclusive use on which the tax has been paid, may
41-5 file a claim for a refund of the net tax paid to the state as the
41-6 comptroller may direct.
41-7 SECTION 2.38. Section 153.224(a), Tax Code, is amended to
41-8 read as follows:
41-9 (a) Except as provided by this section, a claim for a refund
41-10 must be filed with the comptroller within one year after the first
41-11 day of the calendar month following the purchase, use, delivery,
41-12 export, or loss by fire, theft, or [other] accident of diesel fuel,
41-13 whichever period expires latest.
41-14 SECTION 2.39. Sections 154.114(c) and (g), Tax Code, are
41-15 amended to read as follows:
41-16 (c) The comptroller shall deliver [mail] the written notice
41-17 by personal service or by [certified] mail[, return receipt
41-18 requested,] to the permit holder's mailing address as it appears on
41-19 the comptroller's records. Service by mail is complete when the
41-20 notice is deposited with [received, as evidenced by return receipt
41-21 from] the U.S. Postal Service.
41-22 (g) If the comptroller suspends or revokes a permit, the
41-23 comptroller shall provide written notice of the suspension or
41-24 revocation, within a reasonable time, to each distributor and
41-25 wholesaler permit holder in the state. A distributor or wholesaler
41-26 permit holder violates Section 154.1015(a) by selling or
41-27 distributing cigarettes to a person whose permit has been suspended
42-1 or revoked only after the distributor or wholesaler permit holder
42-2 receives written notice of the suspension or revocation from the
42-3 comptroller.
42-4 SECTION 2.40. Section 154.210(a), Tax Code, is amended to
42-5 read as follows:
42-6 (a) A distributor shall deliver to the comptroller, on or
42-7 before the last [15th] day of each month, a report for the
42-8 preceding month.
42-9 SECTION 2.41. Section 154.308(b), Tax Code, is amended to
42-10 read as follows:
42-11 (b) On making a deficiency determination, the comptroller
42-12 shall notify the person by [certified] mail or personal service[,
42-13 return receipt requested]. Service by mail is complete when the
42-14 notice is deposited with [received, as evidenced by return receipt
42-15 from] the U.S. Postal Service.
42-16 SECTION 2.42. Sections 154.309(b) and (d), Tax Code, are
42-17 amended to read as follows:
42-18 (b) A written request for redetermination must be filed at
42-19 the office of the comptroller not later than the 30th [15th
42-20 working] day after the date notice of deficiency is issued
42-21 [received]. If a written request for redetermination is not filed
42-22 as required by this subsection, the determination is final.
42-23 (d) The comptroller shall give notice of a redetermination
42-24 hearing by personal service or by [certified] mail[, return receipt
42-25 requested]. Service by mail is complete when the notice is
42-26 deposited with [received, as evidenced by return receipt from] the
42-27 U.S. Postal Service.
43-1 SECTION 2.43. Section 155.059(c), Tax Code, is amended to
43-2 read as follows:
43-3 (c) The comptroller shall deliver [mail] the written notice
43-4 by personal service or by [certified] mail[, return receipt
43-5 requested,] to the permit holder's mailing address as it appears in
43-6 the comptroller's records. Service by mail is complete when the
43-7 notice is deposited with [received, as evidenced by the return
43-8 receipt from] the United States Postal Service.
43-9 SECTION 2.44. Section 155.103(b), Tax Code, is amended to
43-10 read as follows:
43-11 (b) A manufacturer who sells tobacco products to a permit
43-12 holder in this state shall file with the comptroller, on or before
43-13 the last [15th] day of each month, a report showing the information
43-14 listed in Subsection (a) for the previous month.
43-15 SECTION 2.45. Section 155.111(a), Tax Code, is amended to
43-16 read as follows:
43-17 (a) A distributor shall file with the comptroller on or
43-18 before the last [30th] day of each month, a report for the
43-19 preceding month.
43-20 SECTION 2.46. Section 155.185(b), Tax Code, is amended to
43-21 read as follows:
43-22 (b) On making a deficiency determination, the comptroller
43-23 shall notify the person by personal service or by [certified]
43-24 mail[, return receipt requested]. Service by mail is complete when
43-25 the notice is deposited with [received, as evidenced by return
43-26 receipt from] the U.S. Postal Service.
43-27 SECTION 2.47. Sections 155.186(b) and (d), Tax Code, are
44-1 amended to read as follows:
44-2 (b) A written request for redetermination must be filed at
44-3 the office of the comptroller not later than the 30th [15th
44-4 working] day after the date notice of deficiency is issued
44-5 [received]. If a written request for redetermination is not filed
44-6 as required by this subsection, the determination is final.
44-7 (d) The comptroller shall give notice of a redetermination
44-8 hearing by personal service or by [certified] mail[, return receipt
44-9 requested]. Service by mail is complete when the notice is
44-10 deposited with [received, as evidenced by return receipt from] the
44-11 U.S. Postal Service.
44-12 SECTION 2.48. Section 156.102, Tax Code, is amended to read
44-13 as follows:
44-14 Sec. 156.102. EXCEPTION--RELIGIOUS, CHARITABLE, OR
44-15 EDUCATIONAL ORGANIZATION. (a) This chapter does not impose a tax
44-16 on a corporation or association that is organized and operated
44-17 exclusively for a religious, charitable, or educational purpose if
44-18 no part of the net earnings of the corporation or association inure
44-19 to the benefit of a private shareholder or individual.
44-20 (b) For purposes of this section, an institution of higher
44-21 education is organized and operated exclusively for an educational
44-22 purpose only if the institution is defined as an institution of
44-23 higher education under any subdivision of Section 61.003, Education
44-24 Code.
44-25 SECTION 2.49. Sections 156.103(a), (b), (c), and (d), Tax
44-26 Code, are amended to read as follows:
44-27 (a) This [Subject to this section, this] chapter does not
45-1 impose a tax on:
45-2 (1) the United States;
45-3 (2) a governmental entity of the United States[, this
45-4 state, or an agency, institution, board, or commission of this
45-5 state other than an institution of higher education;]
45-6 [(2) an officer or employee of a state governmental
45-7 entity described by Subdivision (1) when traveling on or otherwise
45-8 engaged in the course of official duties for the governmental
45-9 entity]; or
45-10 (3) an officer or employee of a governmental entity of
45-11 the United States when traveling on or otherwise engaged in the
45-12 course of official duties for the governmental entity [if the
45-13 governmental entity directly pays to the hotel the price for the
45-14 room].
45-15 (b) This state, or an agency, institution, board, or
45-16 commission of this state other than an institution of higher
45-17 education [A governmental entity otherwise excepted under this
45-18 section] shall pay the tax imposed by this chapter and is entitled
45-19 to a refund of the amount of tax paid in accordance with Section
45-20 156.154.
45-21 (c) A state officer or employee of a state governmental
45-22 entity described by Subsection (b) [(a)(2)] who is entitled to
45-23 reimbursement for the cost of lodging and for whom a special
45-24 provision or exception to the general rate of reimbursement under
45-25 the General Appropriations Act is not applicable shall pay the tax
45-26 imposed by [under] this chapter [as if it were imposed by this
45-27 chapter]. The state governmental entity with whom the person is
46-1 associated is entitled under Section 156.154 to a refund of the tax
46-2 paid.
46-3 (d) A state officer or employee of a state governmental
46-4 entity described by Subsection (b) [(a)(2)] for whom a special
46-5 provision or exception to the general rate of reimbursement under
46-6 the General Appropriations Act applies and who is provided with
46-7 photo identification verifying the identity and exempt status of
46-8 the person is not required to pay the tax and is not entitled to a
46-9 refund. The photo identification of a state officer or employee
46-10 described by this section may be modified for the purposes of this
46-11 section.
46-12 SECTION 2.50. Section 171.063, Tax Code, is amended by
46-13 amending Subsection (a) and adding Subsection (h) to read as
46-14 follows:
46-15 (a) The following corporations are exempt from the franchise
46-16 tax:
46-17 (1) a nonprofit corporation exempted from the federal
46-18 income tax under Section 501(c)(3), (4), (5), (6), (7), (8), (10),
46-19 or (19), Internal Revenue Code which in the case of a nonprofit
46-20 hospital means a hospital providing community benefits that include
46-21 charity care and government-sponsored indigent health care
46-22 [community benefits] as set forth in Subchapter D, Chapter 311,
46-23 Health and Safety Code; [Paragraph (A), (B), (C), (D), (E), (F), or
46-24 (G):]
46-25 [(A) charity care and government-sponsored
46-26 indigent health care are provided at a level which is reasonable in
46-27 relation to the community needs, as determined through the
47-1 community needs assessment, the available resources of the hospital
47-2 or hospital system, and the tax-exempt benefits received by the
47-3 hospital or hospital system;]
47-4 [(B) charity care and government-sponsored
47-5 indigent health care are provided in an amount equal to at least
47-6 four percent of the hospital's or hospital system's net patient
47-7 revenue;]
47-8 [(C) charity care and government-sponsored
47-9 indigent health care are provided in an amount equal to at least
47-10 100 percent of the hospital's or hospital system's tax-exempt
47-11 benefits, excluding federal income tax;]
47-12 [(D) for tax periods beginning before January 1,
47-13 1996, charity care and community benefits are provided in a
47-14 combined amount equal to at least five percent of the hospital's
47-15 net patient revenue, provided that charity care and
47-16 government-sponsored indigent health care are provided in an amount
47-17 equal to at least three percent of net patient revenue;]
47-18 [(E) for tax periods beginning after December
47-19 31, 1995, charity care and community benefits are provided in a
47-20 combined amount equal to at least five percent of the hospital's or
47-21 hospital system's net patient revenue, provided that charity care
47-22 and government-sponsored indigent health care are provided in an
47-23 amount equal to at least four percent of net patient revenue;]
47-24 [(F) a nonprofit hospital that has been
47-25 designated as a disproportionate share hospital under the state
47-26 Medicaid program in the current year or in either of the previous
47-27 two fiscal years is considered to have provided a reasonable amount
48-1 of charity care and government-sponsored indigent health care and
48-2 is considered in compliance with the standards provided by this
48-3 subsection; or]
48-4 [(G) a hospital operated on a nonprofit basis
48-5 that is located in a county with a population of less than 50,000
48-6 and in which the entire county or the population of the entire
48-7 county has been designated as a health professionals shortage area
48-8 is considered in compliance with the standards provided by this
48-9 subsection;]
48-10 (2) a corporation exempted under Section 501(c)(2) or
48-11 (25), Internal Revenue Code, if the corporation or corporations for
48-12 which it holds title to property is either exempt from or not
48-13 subject to the franchise tax; and
48-14 (3) a corporation exempted from federal income tax
48-15 under Section 501(c)(16), Internal Revenue Code[; and]
48-16 [(4) a nonprofit corporation exempted from the federal
48-17 income tax under Section 501(c)(3), Internal Revenue Code, that
48-18 does not receive any payment for providing health care services to
48-19 inpatients or outpatients from any source including but not limited
48-20 to the patient or person legally obligated to support the patient,
48-21 third-party payors, Medicare, Medicaid, or any other state or local
48-22 indigent care program. Payment for providing health care services
48-23 does not include charitable donations, legacies, bequests, or
48-24 grants or payments for research.]
48-25 [For purposes of satisfying Paragraph (E) of Subdivision (1),
48-26 a hospital or hospital system may not change its existing fiscal
48-27 year unless the hospital or hospital system changes its ownership
49-1 or corporate structure as a result of a sale or merger.]
49-2 [For purposes of this subsection, a hospital that satisfies
49-3 Paragraph (A), (F), or (G) of Subdivision (1) shall be excluded in
49-4 determining a hospital system's compliance with the standards
49-5 provided by Paragraph (B), (C), (D), or (E) of Subdivision (1).]
49-6 [For purposes of this subsection, the terms "charity care,"
49-7 "government-sponsored indigent health care," "health care
49-8 organization," "hospital system," "net patient revenue," "nonprofit
49-9 hospital," and "tax-exempt benefits" have the meanings set forth in
49-10 Sections 311.031 and 311.042, Health and Safety Code. A
49-11 determination of the amount of community benefits and charity care
49-12 and government-sponsored indigent health care provided by a
49-13 hospital or hospital system and the hospital's or hospital system's
49-14 compliance with the requirements of Section 311.045, Health and
49-15 Safety Code, shall be based on the most recently completed and
49-16 audited prior fiscal year of the hospital or hospital system.]
49-17 [A requirement that a nonprofit hospital provide charity care
49-18 and community benefits under this subsection may be satisfied by a
49-19 donation of money to the Texas Healthy Kids Corporation established
49-20 by Chapter 109, Health and Safety Code, provided that:]
49-21 [(1) the money is donated to be used for a purpose
49-22 described by Section 109.033(c), Health and Safety Code; and]
49-23 [(2) not more than 10 percent of the charity care
49-24 required under any provision of this subsection may be satisfied by
49-25 the donation.]
49-26 [The providing of charity care and government-sponsored
49-27 indigent health care in accordance with Paragraph (A) of
50-1 Subdivision (1) shall be guided by the prudent business judgment of
50-2 the hospital which will ultimately determine the appropriate level
50-3 of charity care and government-sponsored indigent health care based
50-4 on the community needs, the available resources of the hospital,
50-5 the tax-exempt benefits received by the hospital, and other factors
50-6 that may be unique to the hospital, such as the hospital's volume
50-7 of Medicare and Medicaid patients. These criteria shall not be
50-8 determinative factors, but shall be guidelines contributing to the
50-9 hospital's decision along with other factors which may be unique to
50-10 the hospital. The formulas contained in Paragraphs (B), (C), (D),
50-11 and (E) of Subdivision (1) shall also not be considered
50-12 determinative of a reasonable amount of charity care and
50-13 government-sponsored indigent health care.]
50-14 [The requirements of this subsection shall not apply to the
50-15 extent a hospital or hospital system demonstrates that reductions
50-16 in the amount of community benefits, charity care, and
50-17 government-sponsored indigent health care are necessary to maintain
50-18 financial reserves at a level required by a bond covenant, are
50-19 necessary to prevent the hospital or hospital system from
50-20 endangering its ability to continue operations, or if the hospital,
50-21 as a result of a natural or other disaster, is required
50-22 substantially to curtail its operations.]
50-23 [In any fiscal year that a hospital or hospital system,
50-24 through unintended miscalculation, fails to meet any of the
50-25 standards in Subdivision (1), the hospital or hospital system shall
50-26 not lose its tax-exempt status without the opportunity to cure the
50-27 miscalculation in the fiscal year following the fiscal year the
51-1 failure is discovered by both meeting one of the standards and
51-2 providing an additional amount of charity care and
51-3 government-sponsored indigent health care that is equal to the
51-4 shortfall from the previous fiscal year. A hospital or hospital
51-5 system may apply this provision only once every five years].
51-6 (h) A requirement that a nonprofit hospital provide charity
51-7 care and community benefits under Subsection (a)(1) may be
51-8 satisfied by a donation of money to the Texas Healthy Kids
51-9 Corporation established by Chapter 109, Health and Safety Code, if:
51-10 (1) the money is donated to be used for a purpose
51-11 described by Section 109.033(c), Health and Safety Code; and
51-12 (2) not more than 10 percent of the charity care
51-13 required under any provision of Section 311.045, Health and Safety
51-14 Code, may be satisfied by the donation.
51-15 SECTION 2.51. Sections 171.063(c) and (d), Tax Code, are
51-16 amended to read as follows:
51-17 (c) A corporation's exemption under Subsection (b) of this
51-18 section is established by furnishing the comptroller with a copy of
51-19 the Internal Revenue Service's letter of exemption issued to the
51-20 corporation. [The copy of the letter must be filed with the
51-21 comptroller within 15 months after the day that is the last day of
51-22 a calendar month and that is nearest to the date of the
51-23 corporation's charter or certificate of authority.]
51-24 (d) If the Internal Revenue Service has not timely issued to
51-25 a corporation a letter of exemption, evidence establishing the
51-26 corporation's provisional exemption under this section is
51-27 sufficient if the corporation timely files with the comptroller
52-1 [within the 15-month period established by Subsection (c) of this
52-2 section] evidence that the corporation has applied in good faith
52-3 for the federal tax exemption. The evidence must be filed not
52-4 later than the 15th month after the day that is the last day of a
52-5 calendar month and that is nearest to the date of the corporation's
52-6 charter or certificate of authority.
52-7 SECTION 2.52. The heading of Subchapter C, Chapter 171, Tax
52-8 Code, is amended to read as follows:
52-9 SUBCHAPTER C. DETERMINATION OF TAXABLE CAPITAL
52-10 AND TAXABLE EARNED SURPLUS; ALLOCATION AND APPORTIONMENT
52-11 SECTION 2.53. The heading of Section 171.1015, Tax Code, is
52-12 amended to read as follows:
52-13 Sec. 171.1015. REDUCTION OF TAXABLE CAPITAL OR TAXABLE
52-14 EARNED SURPLUS FOR INVESTMENT IN AN ENTERPRISE ZONE.
52-15 SECTION 2.54. Section 171.1015(f)(1), Tax Code, is amended
52-16 to read as follows:
52-17 (1) "Enterprise project" means a person designated by
52-18 the Texas Department of Economic Development [Commerce] as an
52-19 enterprise project under Chapter 2303, Government Code.
52-20 SECTION 2.55. Section 171.1015(g), Tax Code, is amended to
52-21 read as follows:
52-22 (g) Only qualified businesses that have been certified as
52-23 eligible for a tax deduction under this section by the Texas
52-24 Department of Economic Development [Commerce] to the comptroller
52-25 and the Legislative Budget Board are entitled to the tax deduction.
52-26 SECTION 2.56. The heading of Section 171.1016, Tax Code, is
52-27 amended to read as follows:
53-1 Sec. 171.1016. REDUCTION OF TAXABLE CAPITAL OR TAXABLE
53-2 EARNED SURPLUS FOR INVESTMENT IN A READJUSTMENT ZONE.
53-3 SECTION 2.57. Section 171.1016(f)(1), Tax Code, is amended
53-4 to read as follows:
53-5 (1) "Defense readjustment project" means a person
53-6 designated by the Texas Department of Economic Development
53-7 [Commerce] as a defense readjustment project under Chapter 2310,
53-8 Government Code.
53-9 SECTION 2.58. Section 171.1016(g), Tax Code, is amended to
53-10 read as follows:
53-11 (g) Only qualified businesses that have been certified as
53-12 eligible for a tax deduction under this section by the Texas
53-13 Department of Economic Development [Commerce] to the comptroller
53-14 and the Legislative Budget Board are entitled to the tax deduction.
53-15 SECTION 2.59. The heading of Section 171.107, Tax Code, is
53-16 amended to read as follows:
53-17 Sec. 171.107. DEDUCTION OF COST OF SOLAR ENERGY DEVICE FROM
53-18 TAXABLE CAPITAL OR TAXABLE EARNED SURPLUS APPORTIONED TO THIS
53-19 STATE.
53-20 SECTION 2.60. Section 171.110, Tax Code, is amended by
53-21 adding Subsections (i) and (j) to read as follows:
53-22 (i) For purposes of this section, any person designated as
53-23 an officer is presumed to be an officer if that person:
53-24 (1) holds an office created by the board of directors
53-25 or under the corporate charter or bylaws; and
53-26 (2) has legal authority to bind the corporation with
53-27 third parties by executing contracts or other legal documents.
54-1 (j) A corporation may rebut the presumption described in
54-2 Subsection (i) that a person is an officer if it conclusively
54-3 shows, through the person's job description or other documentation,
54-4 that the person does not participate or have authority to
54-5 participate in significant policy making aspects of the corporate
54-6 operations.
54-7 SECTION 2.61. Section 171.501(a), Tax Code, is amended to
54-8 read as follows:
54-9 (a) A corporation that has been certified a qualified
54-10 business as provided by Chapter 2303, Government Code may apply for
54-11 and be granted a refund of franchise tax paid with an initial or
54-12 annual report if the governing body or bodies certify to the Texas
54-13 Department of Economic Development [Commerce] that the business has
54-14 created 10 or more new jobs in its enterprise zone held by
54-15 qualified employees during the calendar year that contains the end
54-16 of the accounting period on which the report is based. The Texas
54-17 Department of Economic Development [Commerce] shall certify
54-18 eligibility for any refund to the comptroller.
54-19 SECTION 2.62. The heading of Subchapter C, Chapter 183, Tax
54-20 Code, is amended to read as follows:
54-21 SUBCHAPTER C. MIXED BEVERAGE TAX CLEARANCE [FUND]
54-22 SECTION 2.63. The heading of Section 183.051, Tax Code, is
54-23 amended to read as follows:
54-24 Sec. 183.051. MIXED BEVERAGE TAX CLEARANCE [FUND].
54-25 SECTION 2.64. Section 183.051(b), Tax Code, is amended to
54-26 read as follows:
54-27 (b) The comptroller shall issue to each county described in
55-1 Subsection (a) a warrant drawn on the general revenue [mixed
55-2 beverage tax clearance] fund in an [the] amount appropriated by the
55-3 legislature that may not be greater than [of] 10.7143 percent of
55-4 receipts from permittees within the county during the quarter and
55-5 shall issue to each incorporated municipality described in
55-6 Subsection (a) a warrant drawn on that fund in an [the] amount
55-7 appropriated by the legislature that may not be greater than [of]
55-8 10.7143 percent of receipts from permittees within the incorporated
55-9 municipality during the quarter. [The remainder of the receipts
55-10 for the quarter and all interest earned on that fund shall be
55-11 transferred to the general revenue fund.]
55-12 SECTION 2.65. Section 191.085(b), Tax Code, is amended to
55-13 read as follows:
55-14 (b) The person shall keep the record open for four [two]
55-15 years for inspection by the comptroller or the attorney general.
55-16 SECTION 2.66. Section 203.051(a), Tax Code, is amended to
55-17 read as follows:
55-18 (a) A producer shall keep a complete record of all sulphur
55-19 he produces in this state. A producer may destroy a record
55-20 required by this section four [three] years after the last entry in
55-21 the record.
55-22 SECTION 2.67. Section 321.102, Tax Code, is amended by
55-23 adding Subsections (e), (f), and (g) to read as follows:
55-24 (e) If as a result of the imposition or increase in a sales
55-25 and use tax by a municipality in which there is located all or part
55-26 of a local governmental entity that has adopted a sales and use tax
55-27 or as a result of the annexation by a municipality of all or part
56-1 of the territory in a local governmental entity that has adopted a
56-2 sales and use tax the overlapping local sales and use taxes in the
56-3 area will exceed two percent, the entity's sales and use tax is
56-4 automatically reduced in that area to a rate that when added to the
56-5 combined rate of local sales and use taxes will equal two percent.
56-6 (f) If an entity's rate is reduced in accordance with
56-7 Subsection (e), the comptroller shall withhold from the
56-8 municipality's monthly sales and use tax allocation an amount equal
56-9 to the amount that would have been collected by the entity had the
56-10 municipality not imposed or increased its sales and use tax or
56-11 annexed the area in the entity less amounts that the entity
56-12 collects following the municipality's levy of or increase in its
56-13 sales and use tax or annexation of the area in the entity. The
56-14 comptroller shall withhold and pay the amount withheld to the
56-15 entity under policies or procedures that the comptroller considers
56-16 reasonable.
56-17 (g) A transit authority is not a local governmental entity
56-18 for the purposes of Subsections (e) and (f).
56-19 SECTION 2.68. Section 322.302, Tax Code, is amended to read
56-20 as follows:
56-21 Sec. 322.302. DISTRIBUTION OF TRUST FUNDS. At [(a) Except
56-22 as provided by Subsection (b) of this section, at] least quarterly
56-23 [twice] during each state fiscal year and as often as feasible, the
56-24 comptroller shall send to the person at each taxing entity who
56-25 performs the function of entity treasurer, payable to the taxing
56-26 entity, the entity's share of the taxes collected by the
56-27 comptroller under this chapter.
57-1 [(b) The comptroller shall make payments required by
57-2 Subsection (a) of this section to entities created under Chapter
57-3 451 or 452, Transportation Code, quarterly each fiscal year as soon
57-4 as practicable after the end of each quarter.]
57-5 SECTION 2.69. Section 323.102(c), Tax Code, is amended to
57-6 read as follows:
57-7 (c) A tax imposed under Section 323.105 of this code or
57-8 Chapter 326, Local Government Code, takes effect on the first day
57-9 of the first calendar quarter after the expiration of the first
57-10 complete calendar quarter occurring after the date on which the
57-11 comptroller receives a notice of the action as required by Section
57-12 323.405(b).
57-13 SECTION 2.70. Section 323.105(e), Tax Code, is amended to
57-14 read as follows:
57-15 (e) The comptroller shall remit to the county amounts
57-16 collected at the rate imposed under this section as part of the
57-17 regular allocation of county tax revenue collected by the
57-18 comptroller if the district is composed of the entire county. The
57-19 comptroller [county] shall, if the district is composed of an area
57-20 less than the entire county, remit that amount to the district.
57-21 Retailers may not be required to use the allocation and reporting
57-22 procedures in the collection of taxes under this section different
57-23 from the procedures that retailers use in the collection of other
57-24 sales and use taxes under this chapter. An item, transaction, or
57-25 service that is taxable in a county under a sales or use tax
57-26 authorized by another section of this chapter is taxable under this
57-27 section. An item, transaction, or service that is not taxable in a
58-1 county under a sales or use tax authorized by another section of
58-2 this chapter is not taxable under this section.
58-3 SECTION 2.71. Section 351.001, Tax Code, is amended by
58-4 adding Subdivision (10) to read as follows:
58-5 (10) "Revenue" includes any interest derived from the
58-6 revenue.
58-7 SECTION 2.72. Section 351.006, Tax Code, is amended to read
58-8 as follows:
58-9 Sec. 351.006. EXEMPTION. (a) A United States governmental
58-10 entity described in Section 156.103(a) is exempt from the payment
58-11 of tax authorized by this chapter [excepted from the tax imposed
58-12 by Chapter 156 under Section 156.103(a)(1) or (a)(3) shall pay the
58-13 tax imposed by this chapter but is entitled to a refund of the tax
58-14 paid].
58-15 (b) A state governmental entity described in Section
58-16 156.103(b) shall pay the tax imposed by this chapter but is
58-17 entitled to a refund of the tax paid.
58-18 (c) A person who is described by Section 156.103(d) is
58-19 exempt from the payment of the tax authorized by this chapter.
58-20 (d) [(c)] A person who is described by Section 156.103(c)
58-21 shall pay the tax imposed by this chapter but the state
58-22 governmental entity with whom the person is associated is entitled
58-23 to a refund of the tax paid.
58-24 (e) [(d)] To receive a refund of tax paid under this
58-25 chapter, the governmental entity entitled to the refund must file a
58-26 refund claim on a form provided by the municipality and containing
58-27 the information required by the municipality. The comptroller by
59-1 rule shall prescribe the form that must be used and the information
59-2 that must be provided.
59-3 (f) [(e)] A governmental entity may file a refund claim with
59-4 the municipality under this chapter only for each calendar quarter
59-5 for all reimbursements accrued during that quarter. The
59-6 municipality may adopt an ordinance to enforce this section.
59-7 SECTION 2.73. Subchapter B, Chapter 351, Tax Code, is
59-8 amended by adding Section 351.107 to read as follows:
59-9 Sec. 351.107. RECORDS. A municipality shall maintain a
59-10 record that accurately identifies the receipt and expenditure of
59-11 all revenue derived from the tax imposed under this chapter.
59-12 SECTION 2.74. Section 352.007, Tax Code, is amended to read
59-13 as follows:
59-14 Sec. 352.007. EXEMPTION. (a) A United States governmental
59-15 entity described in Section 156.103(a) is exempt from the payment
59-16 of tax authorized by this chapter [excepted from the tax imposed by
59-17 Chapter 156 under Section 156.103(a)(1) or (a)(3) shall pay the tax
59-18 imposed by this chapter but is entitled to a refund of the tax
59-19 paid].
59-20 (b) A state governmental entity subject to the tax imposed
59-21 by Chapter 156 under Section 156.103(b) shall pay the tax imposed
59-22 by this chapter but is entitled to a refund of the tax paid.
59-23 (c) A person who is described by Section 156.103(d) is
59-24 exempt from the payment of the tax authorized by this chapter.
59-25 (d) [(c)] A person who is described by Section 156.103(c)
59-26 shall pay the tax imposed by this chapter but the state
59-27 governmental entity with whom the person is associated is entitled
60-1 to a refund of the tax paid.
60-2 (e) [(d)] To receive a refund of a tax paid under this
60-3 chapter, the governmental entity entitled to the refund must file a
60-4 refund claim on a form provided by the county and containing the
60-5 information required by the county. The comptroller by rule shall
60-6 prescribe the form that must be used and the information that must
60-7 be provided.
60-8 (f) [(e)] A governmental entity may file a refund claim with
60-9 the county under this chapter only for each calendar quarter for
60-10 all reimbursements accrued during that quarter. The county may
60-11 adopt a resolution to enforce this section.
60-12 SECTION 2.75. Section 4B(e), Development Corporation Act of
60-13 1979 (Article 5190.6, Vernon's Texas Civil Statutes), as amended by
60-14 Section 3, Chapter 1022, and Section 12, Chapter 1031, Acts of the
60-15 73rd Legislature, Regular Session, 1993, is reenacted to read as
60-16 follows:
60-17 (e) The rate of a tax adopted under this section must be
60-18 one-eighth, one-fourth, three-eighths, or one-half of one percent.
60-19 The ballot proposition at the election held to adopt the tax must
60-20 specify the rate of the tax to be adopted. A corporation that
60-21 holds an election to reduce a tax imposed under Section 4A of this
60-22 Act may in a separate proposition on the same ballot adopt a tax
60-23 under this section. If an eligible city adopts the tax, a tax is
60-24 imposed on the receipts from the sale at retail of taxable items
60-25 within the eligible city at the rate approved at the election.
60-26 There is also imposed an excise tax on the use, storage, or other
60-27 consumption within the eligible city of tangible personal property
61-1 purchased, leased, or rented from a retailer during the period that
61-2 the tax is effective within the eligible city. The rate of the
61-3 excise tax is the same as the rate of the sales tax portion of the
61-4 tax and is applied to the sale price of the tangible personal
61-5 property.
61-6 Explanation: This change is needed to allow the legislature
61-7 to make certain technical changes to statutes involving taxes or
61-8 fees administered by the comptroller of public accounts.
61-9 (2) Senate Rule 12.03(4) is suspended to permit the
61-10 committee to add additional text not included in either the house
61-11 or senate version of the bill, consisting of a new article of the
61-12 bill, to read as follows:
61-13 ARTICLE 3. APPROPRIATIONS AND PROVISIONS RELATED TO
61-14 APPROPRIATIONS
61-15 SECTION 3.01. (a) In addition to other amounts appropriated
61-16 by the 76th Legislature, Regular Session, 1999, for the biennium
61-17 beginning September 1, 1999, and subject to the restrictions
61-18 provided under Articles II and IX, House Bill No. 1, Acts of the
61-19 76th Legislature, Regular Session, 1999 (the General Appropriations
61-20 Act), specifically including Rider 38, page II-66, House Bill No.
61-21 1, the Texas Department of Human Services is appropriated $12
61-22 million from the general revenue fund for fiscal year 2000 for
61-23 reimbursement expenses related to increases in reimbursement rates
61-24 for nursing homes under the medical assistance program and $12
61-25 million from the general revenue fund for fiscal year 2001 for the
61-26 same purpose. Any unexpended balance of the appropriation made by
61-27 this section for fiscal year 2000 is reappropriated to the
62-1 department for fiscal year 2001 for the same purpose.
62-2 (b) The Texas Department of Human Services is authorized to
62-3 transfer the appropriations made by this section to the appropriate
62-4 agency or the appropriate strategy item.
62-5 (c) The appropriations made by this section are contingent
62-6 on the comptroller's providing of notice to the governor and the
62-7 Legislative Budget Board that the comptroller has made a finding,
62-8 based on a revenue estimate made before or after the adjournment
62-9 sine die of the 76th Legislature, Regular Session, that sufficient
62-10 revenue is estimated to be available from the general revenue fund
62-11 to provide for the appropriations made by this section.
62-12 SECTION 3.02. (a) In addition to other amounts
62-13 appropriated by the 76th Legislature, Regular Session, 1999, for
62-14 the biennium beginning September 1, 1999, and subject to the
62-15 restrictions provided under Articles II and IX, House Bill No. 1,
62-16 Acts of the 76th Legislature, Regular Session, 1999 (the General
62-17 Appropriations Act), the Texas Department of Human Services is
62-18 appropriated $6.6 million from the general revenue fund for fiscal
62-19 year 2000 for expenses related to increases in the personal needs
62-20 allowance provided under Section 32.024, Human Resources Code, for
62-21 a person who receives medical assistance and is a resident of a
62-22 convalescent or nursing home or related institution licensed under
62-23 Chapter 242, Health and Safety Code, a personal care facility, an
62-24 ICF-MR facility, or another similar long-term care facility and
62-25 $6.6 million from the general revenue fund for fiscal year 2001 for
62-26 the same purpose. Any unexpended balance of the appropriation made
62-27 by this section for fiscal year 2000 is reappropriated to the
63-1 department for fiscal year 2001 for the same purpose.
63-2 (b) The Texas Department of Human Services is authorized to
63-3 transfer the appropriations made by this section to the appropriate
63-4 agency or the appropriate strategy item.
63-5 (c) The appropriations made by this section are contingent
63-6 on the comptroller's providing of notice to the governor and the
63-7 Legislative Budget Board that the comptroller has made a finding,
63-8 based on a revenue estimate made before or after the adjournment
63-9 sine die of the 76th Legislature, Regular Session, that sufficient
63-10 revenue is estimated to be available from the general revenue fund
63-11 to provide for the appropriations made by this section.
63-12 SECTION 3.03. (a) This section applies only to an Act of
63-13 the 76th Legislature, Regular Session, that contains a provision
63-14 stating that the Act, or a provision of the Act, takes effect only
63-15 if a specific appropriation for the implementation of the Act is
63-16 provided in House Bill No. 1, Acts of the 76th Legislature, Regular
63-17 Session, 1999 (the General Appropriations Act).
63-18 (b) In accordance with the terms of the provision described
63-19 by Subsection (a) of this section, the following Acts take effect:
63-20 (1) House Bill Nos. 424, 713, 714, 820, 1172, 1188,
63-21 1341, 1652, 1833, 1939, 2085, 2145, 2202, 2307, 2573, 2641, 2719,
63-22 2992, 3174, 3504, 3517, and 3778; and
63-23 (2) Senate Bill Nos. 526, 565, 666, 708, 1287, 1423,
63-24 1651, and 1690.
63-25 (c) In accordance with the terms of the provision described
63-26 by Subsection (a) of this section, the following Acts do not take
63-27 effect:
64-1 (1) House Bill Nos. 1933 and 2148; and
64-2 (2) Senate Bill Nos. 313, 840, and 1650.
64-3 (d) The following Acts take effect notwithstanding the
64-4 provision described by Subsection (a) of this section:
64-5 (1) House Bill Nos. 64, 153, 628, 676, 1018, 1140,
64-6 1223, 1444, 1860, 2631, 2815, 2896, 2978, 3050, 3079, 3304, and
64-7 3757; and
64-8 (2) Senate Bill Nos. 229, 913 and 1613.
64-9 (e) The Acts identified in this section take effect, or do
64-10 not take effect, as provided by this section, notwithstanding the
64-11 provision described by Subsection (a) of this section.
64-12 (f) If a provision described by Subsection (a) of this
64-13 section is contained in a bill that is not listed in Subsection
64-14 (b), (c), or (d) of this section, the provision is ineffective, and
64-15 the bill takes effect in accordance with its terms notwithstanding
64-16 that provision, regardless of the relative dates of enactment.
64-17 Explanation: This change is needed to allow the legislature
64-18 to appropriate additional money to the Texas Department of Human
64-19 Services and to address the issue of whether certain bills are
64-20 funded by an appropriation in the General Appropriations Act.
64-21 (3) Senate Rule 12.03(4) is suspended to permit the
64-22 committee to add additional text not included in either the house
64-23 or senate version of the bill, relating to the implementation of
64-24 the new articles added to the bill, to read as follows:
64-25 SECTION 4.01. The following are repealed: . . .
64-26 (3) Sections 151.318(g) and (p) and 152.062(d), Tax
64-27 Code.
65-1 SECTION 4.07. A tax to which Section 2.69 of this Act
65-2 applies that is not being collected on the effective date of this
65-3 Act and that was adopted at an election held before January 1,
65-4 1999, takes effect on the first day of the first calendar quarter
65-5 that begins after the effective date of this Act.
65-6 SECTION 4.08. Each change in law made to the following
65-7 provisions by this Act is a clarification of existing law and does
65-8 not imply that existing law may be construed as inconsistent with
65-9 the law as amended by this Act:
65-10 (1) Section 102.075, Code of Criminal Procedure;
65-11 (2) Section 9, Texas State College and University
65-12 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
65-13 Texas Insurance Code);
65-14 (3) Section 11, Texas Public School Employees Group
65-15 Insurance Act (Article 3.50-4, Insurance Code);
65-16 (4) Section 326.029, Local Government Code;
65-17 (5) Section 326.092, Local Government Code;
65-18 (6) Section 151.317, Tax Code;
65-19 (7) Section 151.318, Tax Code;
65-20 (8) Section 151.3185, Tax Code;
65-21 (9) Section 151.350(d), Tax Code;
65-22 (10) Section 152.002, Tax Code;
65-23 (11) Section 152.041, Tax Code;
65-24 (12) Section 153.117, Tax Code;
65-25 (13) Section 153.119, Tax Code;
65-26 (14) Section 153.206, Tax Code;
65-27 (15) Section 153.219, Tax Code;
66-1 (16) Section 171.063, Tax Code;
66-2 (17) the heading of Subchapter C, Chapter 171, Tax
66-3 Code;
66-4 (18) the headings of Sections 171.1015, 171.1016, and
66-5 171.107, Tax Code;
66-6 (19) Section 171.110, Tax Code;
66-7 (20) Section 191.085, Tax Code; and
66-8 (21) Section 203.051, Tax Code.
66-9 SECTION 4.09. The comptroller of public accounts may adopt
66-10 rules and take other actions before October 1, 1999, as the
66-11 comptroller deems necessary or advisable to prepare for the taking
66-12 effect of Article 2 of this Act.
66-13 SECTION 4.10. (a) Except as provided by Subsections (b),
66-14 (c), and (d) of this section, Article 2 of this Act takes effect
66-15 October 1, 1999.
66-16 (b) Section 2.05 of this Act takes effect January 1, 2000,
66-17 and applies to reporting periods beginning on or after that date.
66-18 (c) Sections 2.50 through 2.61 of this Act take effect
66-19 January 1, 2000, and apply to a report originally due on or after
66-20 that date.
66-21 SECTION 4.12. (a) This Act takes effect immediately except
66-22 that: . . .
66-23 (4) Article 2 of this Act takes effect as provided by
66-24 Section 4.10 of this Act.
66-25 Explanation: This addition is necessary to provide for the
66-26 orderly implementation of the changes made by adding new articles
66-27 to the bill.