By Corte H.B. No. 20
77R84 SMJ-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the application of the sales tax to certain real
1-3 property services provided by municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.0048, Tax Code, is amended by
1-6 amending Subsection (a) and adding Subsection (d) to read as
1-7 follows:
1-8 (a) Except as provided by Subsections [Subsection] (b) and
1-9 (d), "real property service" means:
1-10 (1) landscaping;
1-11 (2) the care and maintenance of lawns, yards, or
1-12 ornamental trees or other plants;
1-13 (3) the removal or collection of garbage, rubbish, or
1-14 other solid waste other than:
1-15 (A) hazardous waste;
1-16 (B) industrial solid waste;
1-17 (C) waste material that results from an activity
1-18 associated with the exploration, development, or production of oil,
1-19 gas, geothermal resources, or any other substance or material
1-20 regulated by the Railroad Commission of Texas under Section 91.101,
1-21 Natural Resources Code;
1-22 (D) domestic sewage or an irrigation return
1-23 flow, to the extent the sewage or return flow does not constitute
1-24 garbage or rubbish; and
2-1 (E) industrial discharges subject to regulation
2-2 by permit issued pursuant to Chapter 26, Water Code;
2-3 (4) building or grounds cleaning, janitorial, or
2-4 custodial services;
2-5 (5) a structural pest control service covered by
2-6 Section 2, Texas Structural Pest Control Act (Article 135b-6,
2-7 Vernon's Texas Civil Statutes); or
2-8 (6) the surveying of real property.
2-9 (d) "Real property service" does not include a service
2-10 described by Subsection (a)(3) if the service is directly provided
2-11 by a municipality.
2-12 SECTION 2. (a) This Act takes effect July 1, 2001, if it
2-13 receives a vote of two-thirds of all members elected to each house,
2-14 as provided by Section 39, Article III, Texas Constitution. If
2-15 this Act does not receive the vote necessary for effect on that
2-16 date, this Act takes effect October 1, 2001.
2-17 (b) The change in law made by this Act does not affect taxes
2-18 imposed before the effective date of this Act, and the law in
2-19 effect before the effective date of this Act is continued in effect
2-20 for the purposes of the liability for and collection of those
2-21 taxes.