By Hodge, Reyna of Bexar, Ehrhardt, Chavez,            H.B. No. 939
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the application of certain taxes on persons involved in
 1-3     television, motion picture, video, and audio productions.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter E, Chapter 152, Tax Code, is amended
 1-6     by adding Section 152.094 to read as follows:
 1-7           Sec. 152.094.  MOTOR VEHICLES USED IN TELEVISION, MOTION
 1-8     PICTURE, VIDEO, OR AUDIO PRODUCTIONS.  (a)  The taxes imposed by
 1-9     this chapter do not apply to the purchase, rental, or use of a
1-10     motor vehicle used exclusively in connection with the production
1-11     for consideration of a television film, commercial, or program, a
1-12     motion picture, or a video or audio recording, a copy of which is
1-13     sold or offered for ultimate sale, licensed, distributed,
1-14     broadcast, or otherwise commercially exhibited.
1-15           (b)  The tax that would have been remitted on gross rental
1-16     receipts without the exemption provided by this section shall be
1-17     deemed to have been remitted for the purpose of computing the
1-18     minimum gross rental receipts tax imposed by Section 152.026.
1-19           SECTION 2.  Subchapter C, Chapter 156, Tax Code, is amended
1-20     by adding Section 156.104 to read as follows:
1-21           Sec. 156.104.  EXCEPTION--PERSONS INVOLVED IN TELEVISION,
1-22     MOTION PICTURE, VIDEO, OR AUDIO PRODUCTIONS.  (a)  Subject to this
1-23     section, this chapter does not impose a tax on a person involved in
1-24     the production for consideration of a television film, commercial,
1-25     or program, a motion picture, or a video or audio recording, a copy
 2-1     of which is sold or offered for ultimate sale, licensed,
 2-2     distributed, broadcast, or otherwise commercially exhibited,
 2-3     provided that the person has the right to use or possess a room in
 2-4     one hotel or in a series of two or more hotels for at least 15
 2-5     consecutive days.
 2-6           (b)  A person otherwise excepted under this section shall pay
 2-7     the tax imposed by this chapter and is entitled to a refund of the
 2-8     amount of tax paid in accordance with Section 156.154.
 2-9           SECTION 3.  Section 156.154(a), Tax Code, is amended to read
2-10     as follows:
2-11           (a)  A governmental entity [that is] entitled under Section
2-12     156.103 or a person entitled under Section 156.104 to a refund of
2-13     taxes paid under this chapter must file a refund claim with the
2-14     comptroller.
2-15           SECTION 4.  (a)  This Act takes effect July 1, 2001, if it
2-16     receives a vote of two-thirds of all members elected to each house,
2-17     as provided by Section 39, Article III, Texas Constitution. If this
2-18     Act does not receive the vote necessary for effect on that date,
2-19     this Act takes effect October 1, 2001.
2-20           (b)  The change in law made by this Act does not affect taxes
2-21     imposed before the effective date of this Act, and the law in
2-22     effect before the effective date of this Act is continued in effect
2-23     for the purposes of the liability for and collection of those
2-24     taxes.