By Sibley                                              S.B. No. 547
         77R5361 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to an exemption from the sales and use tax for certain
 1-3     assessments and fees related to telecommunications services.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 151.007, Tax Code, is amended by adding
 1-6     Subsection (f) to read as follows:
 1-7           (f)  The sales price of telecommunications services does not
 1-8     include the following assessments and fees, if the assessment or
 1-9     fee is passed through to the purchaser of the service and is listed
1-10     as a separate line item on the customer's bill:
1-11                 (1)  the utility gross receipts assessment imposed
1-12     under Subchapter A, Chapter 16, Utilities Code;
1-13                 (2)  the state universal service fund assessment
1-14     imposed under Subchapter B, Chapter 56, Utilities Code;
1-15                 (3)  the federal universal service fund charge;
1-16                 (4)  the telecommunications infrastructure fund
1-17     assessment imposed under Subchapter C, Chapter 57, Utilities Code;
1-18     or
1-19                 (5)  a municipal franchise fee or right-of-way fee
1-20     authorized by Chapter 283, Local Government Code.
1-21           SECTION 2.  (a)  This Act takes effect September 1, 2001.
1-22           (b)  The change in law made by this Act does not affect taxes
1-23     imposed before the effective date of this Act, and the law in
1-24     effect before that date is continued in effect for purposes of the
 2-1     liability for and collection of those taxes.