1-1 By: Bernsen S.B. No. 529
1-2 (In the Senate - Filed February 2, 2001; February 6, 2001,
1-3 read first time and referred to Committee on Finance;
1-4 April 24, 2001, reported favorably, as amended, by the following
1-5 vote: Yeas 12, Nays 0; April 24, 2001, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Ogden
1-7 Amend S.B. No. 529 by inserting an appropriately numbered
1-8 SECTION of the bill to read as follows and renumbering subsequent
1-9 SECTION appropriately:
1-10 SECTION 2. Subsection (c), Section 151.311, Tax Code, as
1-11 added by this Act, expires August 31, 2003.
1-12 A BILL TO BE ENTITLED
1-13 AN ACT
1-14 relating to an exemption from the sales and use tax for tangible
1-15 personal property rented in connection with the improvement of
1-16 realty of a navigation district or port authority.
1-17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-18 SECTION 1. Section 151.311, Tax Code, is amended by amending
1-19 Subsections (c) and (d) and adding Subsection (e) to read as
1-20 follows:
1-21 (c) The rental of tangible personal property, including
1-22 machinery and equipment and its accessories and repair and
1-23 replacement parts, for use in the performance of a contract for an
1-24 improvement of realty of a navigation district or port authority
1-25 created under Section 52, Article III, or Section 59, Article XVI,
1-26 Texas Constitution, is exempt if the property is:
1-27 (1) necessary and essential to perform the contract;
1-28 (2) rented for the sole purpose of being used to
1-29 perform the contract; and
1-30 (3) used only at the job site.
1-31 (d) The purchase of a taxable service for use in the
1-32 performance of a contract for an improvement to realty that is
1-33 performed for an organization exempted under Section 151.309 or
1-34 151.310 [of this code] is exempt if the service is performed at the
1-35 job site and if:
1-36 (1) the contract expressly requires the specific
1-37 service to be provided or purchased by the person performing the
1-38 contract; or
1-39 (2) the service is integral to the performance of the
1-40 contract.
1-41 (e) [(d)] For purposes of Subsection (b) [this section],
1-42 tangible personal property is completely consumed if after being
1-43 used once for its intended purpose it is used up or destroyed.
1-44 Tangible personal property that is rented or leased for use in the
1-45 performance of the contract cannot be completely consumed for
1-46 purposes of Subsection (b) [this section].
1-47 SECTION 2. (a) This Act takes effect July 1, 2001, if it
1-48 receives a vote of two-thirds of all the members elected to each
1-49 house, as provided by Section 39, Article III, Texas Constitution.
1-50 If this Act does not receive the vote necessary for effect on that
1-51 date, this Act takes effect October 1, 2001.
1-52 (b) The change in law made by this Act does not affect taxes
1-53 imposed before the effective date of this Act, and the former law
1-54 is continued in effect for purposes of the liability for and
1-55 collection of those taxes.
1-56 * * * * *