By Gutierrez                                          H.B. No. 2990
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to refunds of sales and use tax paid on tangible personal
 1-3     property that is exported beyond the territorial limits of the
 1-4     United States.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 151.307, Tax Code, is amended to read as
 1-7     follows:
 1-8           (a)  Tangible personal property or service that this state is
 1-9     prohibited from taxing by the law of the United States, the United
1-10     States Constitution, or the Constitution of Texas is exempted from
1-11     the taxes imposed by this chapter.
1-12           (b)  When an exemption is claimed because tangible personal
1-13     property is exported beyond the territorial limits of the United
1-14     States, proof of export may be shown only by:
1-15                 (1)  a bill of lading issued by a licensed and
1-16     certificated carrier of persons or property showing the seller as
1-17     consignor, the buyer as consignee, and a delivery point outside the
1-18     territorial limits of the United States;
1-19                 (2)  documentation:
1-20                       (A)  provided by a United States Customs Broker
1-21     licensed by the comptroller under Section 151.157;
1-22                       (B)  certifying that delivery was made to a point
1-23     outside the territorial limits of the United States; [and]
 2-1                       (C)  to which a stamp issued under Section
 2-2     151.158 is affixed in the manner required by that section or
 2-3     Section 151.157; and
 2-4                       (D)  accompanied by import documents from the
 2-5     country of destination showing that the property was imported into
 2-6     a country other than the United States.
 2-7                 (3)  import documents from the country of destination
 2-8     showing that the property was imported into a country other than
 2-9     the United States;
2-10                 (4)  an original airway, ocean, or railroad bill of
2-11     lading and a forwarder's receipt if an air, ocean, or rail freight
2-12     forwarder takes possession of the property; or
2-13                 (5)  any other manner provided by the comptroller for
2-14     an enterprise authorized to make tax-free purchases under Section
2-15     151.156.
2-16           [(c)  Documentation, including the stamp affixed to the
2-17     documentation, that is provided by a customs broker licensed by the
2-18     comptroller under Section 151.157 is presumed valid in the absence
2-19     of clear and convincing evidence that tangible personal property
2-20     covered by the documentation was not exported outside the
2-21     territorial limits of the United States.]
2-22           (c) [(d)]  A purchaser who has proof of export as provided in
2-23     Subsection (b)(2) of this section may recover tax paid to a
2-24     retailer on the purchase of tangible personal property that was
2-25     exported beyond the territorial limits of the United States.  The
2-26     purchaser may recover tax from a retailer by submitting to the
 3-1     retailer the purchaser's receipt(s) for the tax payment and proof
 3-2     of export as required in Subsection (b)(2) of this section.  [A
 3-3     retailer who receives documentation under Subsection (b)(2)
 3-4     relating to the purchase of tangible personal property exported
 3-5     beyond the territorial limits of the United States may not refund
 3-6     the tax paid under this chapter on that purchase before:]
 3-7                 [(1)  the 24th hour after the hour stated as the time
 3-8     of export on the documentation, if the retailer is located in a
 3-9     county that borders the United Mexican States; or]
3-10                 [(2)  the seventh day after the day stated as the date
3-11     of export on the documentation, if the retailer is located in a
3-12     county that does not border the United Mexican States.]
3-13           (d) [(e)]  A retailer who makes a refund [before the time
3-14     prescribed by Subsection (d) or makes a refund] that is
3-15     undocumented or improperly documented is liable for the amount of
3-16     the tax refund with interest.
3-17           (e) [(f)]  In this section:
3-18                 (1)  "Air forwarder" means a licensed International Air
3-19     Transportation Association freight forwarder.
3-20                 (2)  "Ocean forwarder" means a licensed Federal
3-21     Maritime Commission freight forwarder.
3-22           SECTION 2.  This Act takes effect September 1, 2001.