By Danburg H.B. No. 1965
77R7285 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the imposition and use of revenue from a sales and use
1-3 tax on billboard advertising services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 151, Tax Code, is amended
1-6 by adding Section 151.0029 to read as follows:
1-7 Sec. 151.0029. BILLBOARD ADVERTISING SERVICE. (a) In this
1-8 section, "billboard" means a sign that:
1-9 (1) is a separate and fixed structure directly
1-10 attached to land or a building;
1-11 (2) is designed to have its content changed at
1-12 frequent intervals in an economically feasible manner;
1-13 (3) is designed to prominently display outdoor
1-14 advertising that is visible to the occupants of motor vehicles
1-15 driving by the sign; and
1-16 (4) displays advertising copy that pertains to a
1-17 business, person, organization, activity, event, place, service, or
1-18 product not principally located or primarily manufactured or sold
1-19 on the premises on which the sign is located.
1-20 (b) "Billboard advertising service" means a service allowing
1-21 a purchaser to obtain outdoor advertising on a billboard, including
1-22 the rental of the billboard space.
1-23 SECTION 2. Section 151.0101(a), Tax Code, as amended by
1-24 Chapters 394 and 405, Acts of the 76th Legislature, Regular
2-1 Session, 1999, is amended to properly number subdivisions and to
2-2 add Subdivision (18) to read as follows:
2-3 (a) "Taxable services" means:
2-4 (1) amusement services;
2-5 (2) cable television services;
2-6 (3) personal services;
2-7 (4) motor vehicle parking and storage services;
2-8 (5) the repair, remodeling, maintenance, and
2-9 restoration of tangible personal property, except:
2-10 (A) aircraft;
2-11 (B) a ship, boat, or other vessel, other than:
2-12 (i) a taxable boat or motor as defined by
2-13 Section 160.001;
2-14 (ii) a sports fishing boat; or
2-15 (iii) any other vessel used for pleasure;
2-16 (C) the repair, maintenance, and restoration of
2-17 a motor vehicle; and
2-18 (D) the repair, maintenance, creation, and
2-19 restoration of a computer program, including its development and
2-20 modification, not sold by the person performing the repair,
2-21 maintenance, creation, or restoration service;
2-22 (6) telecommunications services;
2-23 (7) credit reporting services;
2-24 (8) debt collection services;
2-25 (9) insurance services;
2-26 (10) information services;
2-27 (11) real property services;
3-1 (12) data processing services;
3-2 (13) real property repair and remodeling;
3-3 (14) security services;
3-4 (15) telephone answering services; [and]
3-5 (16) Internet access service; [.]
3-6 (17) [(16)] a sale by a transmission and distribution
3-7 utility, as defined in Section 31.002, Utilities Code, of
3-8 transmission or delivery of service directly to an electricity
3-9 end-use customer whose consumption of electricity is subject to
3-10 taxation under this chapter; and
3-11 (18) billboard advertising services.
3-12 SECTION 3. Section 151.801, Tax Code, is amended by amending
3-13 Subsection (a) and adding Subsection (f) to read as follows:
3-14 (a) Except for the amounts allocated under Subsections (b),
3-15 [and] (c), and (f), all proceeds from the collection of the taxes
3-16 imposed by this chapter shall be deposited to the credit of the
3-17 general revenue fund.
3-18 (f) The proceeds from the collection of the taxes imposed by
3-19 this chapter on the sale or use of billboard advertising services
3-20 shall be deposited to the credit of the highway billboard removal
3-21 account. The highway billboard removal account is an account in
3-22 the general revenue fund that may be appropriated only to the Texas
3-23 Department of Transportation. The department may use the money
3-24 only to remove billboards during the improvement of the state
3-25 highway system, as those terms are defined by Section 221.001,
3-26 Transportation Code.
3-27 SECTION 4. This Act takes effect September 1, 2001.