By Davis of Dallas H.B. No. 3609
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 the sales and use tax exemption for gas and
1-3 electricity.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.317, Tax Code, is amended to read as
1-6 follows:
1-7 (d) Except as otherwise provided in subsection (f), [T] to
1-8 qualify for the exemptions in Subsections (a)(2)-(8), gas or
1-9 electricity must be sold to the person using the gas or electricity
1-10 in the exempt manner. For purposes of the subsection, the use of
1-11 gas or electricity in an exempt manner by an independent contractor
1-12 engaged by the purchaser of the gas or electricity to perform one
1-13 or more of the exempt activities identified in Subsections
1-14 (a)(2)-(8) is considered use by the purchaser of the gas or
1-15 electricity.
1-16 (e) Natural gas or electricity used during a regular monthly
1-17 billing period for both exempt and taxable purposes under a single
1-18 meter is totally exempt or taxable based on the predominant use of
1-19 the natural gas or electricity measured by that meter. The
1-20 comptroller may prescribe by rule the procedures by which a
1-21 purchaser must establish the predominant use of the natural gas or
1-22 electricity.
1-23 (f) Natural gas or electricity is exempt if it is sold to an
2-1 owner of a building or a management company that directly passes
2-2 the actual charge for gas or electricity to a tenant who performs
2-3 exempt activities identified in Subsection (a)(8) and if that
2-4 tenant's use of gas or electricity meets the requirement noted in
2-5 subsection.
2-6 SECTION 2. Each change in law made by this Act is a
2-7 clarification of existing law and does not imply that existing law
2-8 may be construed as inconsistent with the law as amended by this
2-9 Act.
2-10 SECTION 3. This Act takes affect September 1, 2001.
2-11 SECTION 4. The importance of this legislation and the crowded
2-12 condition of the calendars in both houses create an emergency and
2-13 an imperative public necessity that the constitutional rule
2-14 requiring bills to be read on three several days in each house be
2-15 suspended, an this rule is hereby suspended.