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.