By: Armbrister S.B. No. 1125
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 technical changes to statutes involving taxes or fees
1-3 administered by the Comptroller of Public Accounts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 43.0751(k), Local Government Code, is
1-6 amended to read as follows:
1-7 (k) A municipality that has annexed all or part of a
1-8 district for limited purposes under this section may impose a
1-9 [retail] sales and use tax within the boundaries of the part of the
1-10 district that is annexed for limited purposes. The Municipal Sales
1-11 and Use Tax Act (Chapter 321, Tax Code) governs the imposition,
1-12 computation, administration, governance, and abolition of a
1-13 municipal sales and use tax imposed in such district except as
1-14 inconsistent with this section.
1-15 SECTION 2. Section 326.023(b), Local Government Code, is
1-16 amended to read as follows:
1-17 (b) The petition must:
1-18 (1) include a name for the proposed district that
1-19 describes the location of the district followed by the words
1-20 "Library District";
1-21 (2) describe the boundaries of the district by:
1-22 (A) metes and bounds;
1-23 (B) lot and block number, if there is a recorded
2-1 map of the area; or
2-2 (C) other sufficient legal description;
2-3 (3) include the names of five persons who are willing
2-4 and qualified to serve as the initial board of trustees of the
2-5 district if elected at the election to create the district; [and]
2-6 (4) include the rate of the sales tax that would be
2-7 imposed by the board of the proposed district on approval of the
2-8 district; and
2-9 (5) include a listing of all known businesses
2-10 identified in the proposed boundaries of the district.
2-11 SECTION 3. Subsections (c) and (d), Section 326.029(c),
2-12 Local Government Code, are amended to read as follows:
2-13 (c) The order canvassing the results of the election must:
2-14 (1) contain a description of the district's boundaries
2-15 together with a map of the district; [and]
2-16 (2) [be filed in the deed records of the county in
2-17 which the district is located] state the date of the election; and
2-18 (3) contain a listing of the total number of votes
2-19 cast for and against the ballot proposition.
2-20 (d) The order issued by a commissioners court canvassing the
2-21 results of the election must be:
2-22 (1) filed in the deed records of the county in which
2-23 the library district is located; and
2-24 (2) mailed or delivered to the comptroller not later
2-25 than the thirtieth day after the date the order is issued.
2-26 SECTION 4. Subchapter F of Chapter 363, Local Government
3-1 Code, is amended by adding Section 363.261, to read as follows:
3-2 Section 363.261. Effective Date of Tax Change (a) If a
3-3 majority of the votes cast in a continuation election or a
3-4 dissolution election held under this chapter are against
3-5 continuation of the district or in favor of its dissolution, the
3-6 board shall notify the comptroller in writing not later than the
3-7 10th day after the canvass of the election returns.
3-8 (b) If the crime control district is to be dissolved or not
3-9 continued as a result of the election, the abolition of the local
3-10 crime control sales and use tax is effective on the first day of
3-11 the first calendar quarter that occurs after the expiration of the
3-12 first complete calendar quarter that occurs after the comptroller
3-13 receives a notice of the results of the continuation or dissolution
3-14 election.
3-15 (c) If the comptroller determines that an effective date
3-16 provided by Subsection (b) will occur before the comptroller can
3-17 reasonably take the action required to implement abolition of the
3-18 tax, the comptroller may extend the effective date until the first
3-19 day of the next succeeding calendar quarter.
3-20 SECTION 5. Section 378.004, Local Government Code, is
3-21 amended to read as follows:
3-22 Sec. 378.004. Municipal Powers. In addition to other powers
3-23 that a municipality may exercise, a municipality may:
3-24 (1) waive or adopt fees related to the construction of
3-25 buildings in the zone, including fees related to the inspection of
3-26 buildings and impact fees;
4-1 (2) enter into agreements, for a period of not more
4-2 than 10 years, for the purpose of benefiting the zone, for sales
4-3 tax refunds [or abatements] of municipal sales tax on sales made in
4-4 the zone;
4-5 (3) enter into agreements abating municipal property
4-6 taxes on property in the zone subject to the duration limits of
4-7 Section 312.204, Tax Code; and
4-8 (4) set baseline performance standards, such as the
4-9 Energy Star Program as developed by the Department of Energy, to
4-10 encourage the use of alternative building materials that address
4-11 concerns relating to the environment or to the building costs,
4-12 maintenance, or energy consumption.
4-13 SECTION 6. Section 383.104, Local Government Code, is
4-14 amended by adding Subsection (c) to read as follows:
4-15 (c) If no sales tax imposed under this chapter has been
4-16 collected within the district within twelve months of its effective
4-17 date, the district's sales and use tax will automatically be
4-18 discontinued by operation of law. The comptroller shall notify the
4-19 board of directors of the district and the county commissioners
4-20 court of the county in which the district is located of the
4-21 discontinuance of the tax. The district's sales and use tax may be
4-22 imposed again after its discontinuance by following the same
4-23 procedures provided under this chapter for its initial imposition.
4-24 SECTION 7. Section 25.00212(a), Government Code, is amended
4-25 to read as follows:
4-26 (a) At the end of each state fiscal year the comptroller
5-1 shall determine the amounts deposited in the judicial fund under
5-2 Section 51.704 [51.703] and the amounts paid to the counties under
5-3 Section 25.00211. If the total amount paid under Section 51.704 by
5-4 all counties exceeds the total paid to the counties under Section
5-5 25.00211, the state shall remit the excess to the counties
5-6 proportionately based on the percentage of the total paid by each
5-7 county.
5-8 SECTION 8. Section 111.0081(b), Tax Code, is amended by to
5-9 read as follows:
5-10 (b) This section does not apply to a determination under
5-11 Section 111.022 [151.506] of this code.
5-12 SECTION 9. Section 111.301 (e), Tax Code, is amended to read
5-13 as follows:
5-14 (e) Application for the refund is to the comptroller. The
5-15 application must:
5-16 (1) be made on the form prescribed by the comptroller;
5-17 (2) have attached a tax receipt from the assessor and
5-18 collector of taxes for the school district showing full payment of
5-19 school district ad valorem taxes on the property for the tax year
5-20 for which the refund is sought; and
5-21 (3) include sufficient information for the comptroller
5-22 to determine the portion of the ad valorem taxes paid to a school
5-23 district by the person for the applicable tax year on the property
5-24 that the person would not have been required to pay if the school
5-25 district had entered into a tax abatement agreement concerning the
5-26 property that included the same terms, including terms governing
6-1 the portion of the property that is to be exempt from taxation
6-2 under the agreement, as specified in the [applicable] municipal or
6-3 county tax abatement agreement on which the refund amount is to be
6-4 based.
6-5 SECTION 10. Subsections (b) and (d), Section 111.302, Tax
6-6 Code, are amended to read as follows:
6-7 (b) Applications for refund must be filed before August 1 of
6-8 the year following the tax year for which the person applying has
6-9 paid ad valorem taxes described by Section 111.301(a). Within 90
6-10 [60] days thereafter, the comptroller shall compute the total
6-11 amount eligible for refund.
6-12 (d) If an eligible person has entered into tax abatement
6-13 agreements with the municipality and the county, and the agreements
6-14 provided to the comptroller show that the agreements exempt
6-15 different portions of property value, the refund amount shall be
6-16 calculated based on the greater of the portions exempted.
6-17 SECTION 11. Section 111.304, Tax Code, is amended to read as
6-18 follows:
6-19 Not later than December 1, 1999, and December 1 of each
6-20 subsequent year, the comptroller shall submit an annual report to
6-21 the legislature. The report:
6-22 (1) must document the applications for refunds filed
6-23 with the comptroller under this subchapter;
6-24 (2) must document the refunds paid by the comptroller
6-25 under this chapter; and
6-26 (3) [must contain relevant information obtained from
7-1 the Texas Department of Commerce, including information to
7-2 demonstrate the relationship between tax refunds under this
7-3 subchapter and the economy; and]
7-4 [(4)] may include any other relevant information that
7-5 the comptroller determines is applicable to this subchapter or to
7-6 Chapter 312.
7-7 SECTION 12. Section 151.007(a), Tax Code, is amended to read
7-8 as follows:
7-9 (a) Except as provided by Subsections (c) and (d) of this
7-10 section, "sales price" or "receipts" means the total amount for
7-11 which a taxable item is sold, leased, or rented, valued in money,
7-12 without a deduction for the cost of:
7-13 (1) the taxable item sold, leased, or rented;
7-14 (2) the materials used, labor or service employed,
7-15 interest, losses, or other expenses;
7-16 (3) the transportation or installation of tangible
7-17 personal property; or
7-18 (4) transportation incident to the performance of a
7-19 taxable service.
7-20 SECTION 13. Section 151.010, Tax Code, is amended to read as
7-21 follows:
7-22 Sec. 151.010. "TAXABLE ITEM." "Taxable item" means tangible
7-23 personal property and taxable services. For purposes of this
7-24 chapter and unless otherwise provided for in this chapter, the
7-25 sale or use of a taxable item in electronic form instead of on
7-26 physical media does not alter its tax status.
8-1 SECTION 14. Section 151.057, Tax Code, is amended to read as
8-2 follows:
8-3 Sec. 151.057. Services by Employees.
8-4 The following services are not taxable under this chapter:
8-5 (1) a service performed by an employee for his employer in
8-6 the regular course of business, within the scope of the employee's
8-7 duties, and for which the employee is paid his regular wage or
8-8 salary;
8-9 (2) a service performed by an employee of a temporary
8-10 employment service as defined in Chapter 93, Labor Code, [a
8-11 temporary help service] for an employer to supplement the
8-12 employer's existing work force on a temporary basis, when the
8-13 service is normally performed by the employer's own employees, the
8-14 employer provides all supplies and equipment necessary, and the
8-15 help is under the direct or general supervision of the employer to
8-16 whom the help is furnished; or
8-17 (3) a service performed by assigned employees of a staff
8-18 leasing company, either licensed under Chapter 91, Labor Code, or
8-19 exempt from the licensing requirements of the Labor Code, for a
8-20 client company under a written contract that provides for shared
8-21 employment responsibilities between the staff leasing company and
8-22 the client company for the assigned employees, most of whom must
8-23 have been previously employed by the client company. The
8-24 comptroller shall prescribe by rule the minimum percentage of
8-25 assigned employees that must have been previously employed by the
8-26 client company, the minimum time period the assigned employees must
9-1 have been employed by the client company prior to the commencement
9-2 of its contract, and such other criteria as the comptroller may
9-3 deem necessary to properly implement this section.
9-4 SECTION 15. Section 151.257(b), Tax Code, is amended to read
9-5 as follows:
9-6 (b) If the security filed by the person is a surety bond,
9-7 the comptroller shall send a copy of the determination to each
9-8 surety on the bond and shall demand payment from both the person
9-9 filing the bond and each surety. A surety's obligation under this
9-10 bond is not affected by the surety's having no record of the
9-11 receipt of a copy of the comptroller's determination notice or
9-12 payment demand.
9-13 SECTION 16. Chapter 151, Tax Code, is amended by adding
9-14 Section 151.3021 to read as follows:
9-15 Sec. 151.3021. PACKAGING SUPPLIES AND WRAPPING.
9-16 (a) Internal and external wrapping, packing, and packaging
9-17 supplies are exempted from the taxes imposed by this chapter if
9-18 sold to a laundry or dry cleaner for use in wrapping, packing, or
9-19 packaging an item that has been pressed and dry cleaned or
9-20 laundered by the person operating as a laundry or dry cleaner in
9-21 the regular course of business.
9-22 (b) In this section:
9-23 (1) "Laundry or dry cleaner" does not include coin
9-24 operated or other self service garment cleaning facilities.
9-25 (2) "Wrapping, packing, and packing supplies" means
9-26 hangers, safety pins, pins, inventory tags, staples, boxes, paper
10-1 wrappers, and plastic bags.
10-2 SECTION 17. Section 151.308(a), Tax Code, is amended to read
10-3 as follows:
10-4 (a) The following items are exempted from the taxes imposed
10-5 by this chapter:
10-6 (1) oil as taxed by Chapter 202;
10-7 (2) sulphur as taxed by Chapter 203;
10-8 (3) motor fuels and special fuels as defined, taxed,
10-9 or exempted by Chapter 153;
10-10 (4) cement as taxed by Chapter 181;
10-11 (5) motor vehicles, trailers, and semitrailers as
10-12 defined, taxed, or exempted by Chapter 152 or 157, other than a
10-13 mobile office as defined by Section 152.001(16);
10-14 (6) mixed beverages, ice, or nonalcoholic beverages
10-15 and the preparation or service of these items if the receipts are
10-16 taxable by Chapter 183 [Chapter 202, Alcoholic Beverage Code];
10-17 (7) alcoholic beverages when sold to the holder of a
10-18 private club registration permit or to the agent or employee of the
10-19 holder of a private club registration permit if the holder or the
10-20 agent or employee is acting as the agent of the members of the club
10-21 and if the beverages are to be served on the premises of the club;
10-22 (8) oil well service as taxed by Subchapter E, Chapter
10-23 191; and
10-24 (9) insurance premiums subject to gross premiums
10-25 taxes.
10-26 SECTION 18. Section 151.310, Tax Code, is amended by
11-1 amending subsection (d) and adding subsection (f), to read as
11-2 follows:
11-3 (d) If two or more organizations jointly hold a tax-free
11-4 sale or auction, each [neither] organization may hold one
11-5 additional [another] tax-free sale or auction during the calendar
11-6 year in which the joint sale or auction is held. The employment of
11-7 and payment of a reasonable fee to an auctioneer to conduct a
11-8 tax-free auction does not disqualify an otherwise qualified
11-9 organization from receiving the exemption provided by Subsection
11-10 (c) [of this section].
11-11 (f) A joint venture or partnership formed between a
11-12 nonprofit hospital or hospital system that qualifies for an
11-13 exemption under subsection (e) of this section and a for-profit
11-14 entity is entitled to an exemption from the tax imposed by this
11-15 chapter on its purchases in proportion to the community benefits
11-16 provided by the joint venture or partnership that include charity
11-17 care and government-sponsored indigent health care, in the same
11-18 manner as provided in Subchapter D, Chapter 311, Health and Safety
11-19 Code.
11-20 SECTION 19. Section 151.313, Tax Code, is amended by
11-21 amending Subsection (a) and adding Subsection (c) to read as
11-22 follows:
11-23 (a) The following items are exempted from the taxes imposed
11-24 by this chapter:
11-25 (1) a drug or medicine, other than insulin, if
11-26 prescribed or dispensed for a human or animal by a licensed
12-1 practitioner of the healing arts;
12-2 (2) insulin;
12-3 (3) a drug or medicine, without regard to whether it
12-4 is prescribed or dispensed by a licensed practitioner of the
12-5 healing arts[, that is labeled with a national drug code issued by
12-6 the federal Food and Drug Administration].
12-7 (4) a hypodermic syringe or needle;
12-8 (5) a brace; hearing aid or audio loop; orthopedic,
12-9 dental, or prosthetic device; ileostomy, colostomy, or ileal
12-10 bladder appliance; or supplies or replacement parts for the listed
12-11 items;
12-12 (6) a therapeutic appliance, device, and any related
12-13 supplies specifically designed for those products, if dispensed or
12-14 prescribed by a licensed practitioner of the healing arts, when
12-15 those items are purchased and used by an individual for whom the
12-16 items listed in this subdivision were dispensed or prescribed;
12-17 (7) corrective lens and necessary and related
12-18 supplies, if dispensed or prescribed by an ophthalmologist or
12-19 optometrist;
12-20 (8) specialized printing or signalling equipment used
12-21 by the deaf for the purpose of enabling the deaf to communicate
12-22 through the use of an ordinary telephone and all materials, paper,
12-23 and printing ribbons used in that equipment;
12-24 (9) a braille wristwatch, braille writer, braille
12-25 paper and braille electronic equipment that connects to computer
12-26 equipment, and the necessary adaptive devices and adaptive computer
13-1 software;
13-2 (10) each of the following items if purchased for use
13-3 by the blind to enable them to function more independently: a
13-4 slate and stylus, print enlarger, light probe, magnifier, white
13-5 cane, talking clock, large print terminal, talking terminal, or
13-6 harness for guide dog;
13-7 (11) hospital beds; and
13-8 (12) blood glucose monitoring strips; [and]
13-9 (13) an adjustable eating utensil used to facilitate
13-10 independent eating if purchased for use by a person, including a
13-11 person who is elderly or physically disabled, has had a stroke, or
13-12 is a burn victim, who does not have full use or control of the
13-13 person's hands or arms; and[.]
13-14 (14) a dietary supplement.
13-15 (c) In this section:
13-16 (1) A product is a drug or medicine if:
13-17 (A) the product:
13-18 (i) is intended for use in the diagnosis,
13-19 cure, mitigation, treatment, or prevention of disease, illness,
13-20 injury or pain;
13-21 (ii) is applied to the human body or is a
13-22 product that humans ingest or inhale;
13-23 (iii) is not an appliance or device; and
13-24 (iv) is not food; or
13-25 (B) the product is labeled or required to be
13-26 labeled with a "Drug Facts" panel pursuant to the regulations of
14-1 the federal Food and Drug Administration.
14-2 (2) A product is a dietary supplement if:
14-3 (A) the product:
14-4 (i) contains one or more vitamins,
14-5 minerals, herbs, amino acids, or substances that are intended to
14-6 increase caloric intake;
14-7 (ii) is not represented as food or the
14-8 sole item of a meal or the diet; and
14-9 (iii) is labeled "dietary supplement" or
14-10 "supplement"; or
14-11 (B) the product is labeled or required to be
14-12 labeled with a "Supplement Facts" panel pursuant to the regulations
14-13 of the federal Food and Drug Administration.
14-14 SECTION 20. Section 151.317(a), Tax Code, is amended to read
14-15 as follows:
14-16 (a) Subject to Subsection (d), gas and electricity are
14-17 exempted from the taxes imposed by this chapter when sold for:
14-18 (1) residential use;
14-19 (2) use in powering equipment exempt under Sections
14-20 [Section] 151.318 or 151.3185 by a person processing tangible
14-21 personal property for sale as tangible personal property, other
14-22 than preparation or storage of food for immediate consumption;
14-23 (3) use in lighting, cooling, and heating in the
14-24 manufacturing area during the actual manufacturing or processing of
14-25 tangible personal property for sale as tangible personal property,
14-26 other than preparation or storage of food for immediate
15-1 consumption;
15-2 (4) use directly in exploring for, producing, or
15-3 transporting, a material extracted from the earth;
15-4 (5) use in agriculture, including dairy or poultry
15-5 operations and pumping for farm or ranch irrigation;
15-6 (6) use directly in electrical processes, such as
15-7 electroplating, electrolysis, and cathodic protection;
15-8 (7) use directly in the off-wing processing, overhaul,
15-9 or repair of a jet turbine engine or its parts for a certificated
15-10 or licensed carrier of persons or property;
15-11 (8) use directly in providing, under contracts with or
15-12 on behalf of the United States government or foreign governments,
15-13 defense or national security-related electronics, classified
15-14 intelligence data processing and handling systems, or
15-15 defense-related platform modifications or upgrades; [or]
15-16 (9) a direct or indirect use, consumption, or loss of
15-17 electricity by an electric utility engaged in the purchase of
15-18 electricity for resale; or
15-19 (10) use in timber operations, including pumping for
15-20 irrigation of timber land.
15-21 SECTION 21. Section 151.318(a), Tax Code, is amended to read
15-22 as follows:
15-23 (a) The following items are exempted from the taxes imposed
15-24 by this chapter if sold, leased, or rented to, or stored, used, or
15-25 consumed by a manufacturer:
15-26 (1) tangible personal property that will become an
16-1 ingredient or component part of tangible personal property
16-2 manufactured, processed, or fabricated for ultimate sale;
16-3 (2) tangible personal property directly used or
16-4 consumed in or during the actual manufacturing, processing, or
16-5 fabrication of tangible personal property for ultimate sale if the
16-6 use or consumption of the property is necessary or essential to the
16-7 manufacturing, processing, or fabrication operation and directly
16-8 makes or causes a chemical or physical change to:
16-9 (A) the product being manufactured, processed,
16-10 or fabricated for ultimate sale; or
16-11 (B) any intermediate or preliminary product that
16-12 will become an ingredient or component part of the product being
16-13 manufactured, processed, or fabricated for ultimate sale;
16-14 (3) services performed directly on the product being
16-15 manufactured prior to its distribution for sale and for the purpose
16-16 of making the product more marketable;
16-17 (4) actuators, steam production equipment and its
16-18 fuel, in-process flow through tanks, cooling towers, generators,
16-19 heat exchangers, transformers and the switches, breakers, capacitor
16-20 banks, regulators, relays, reclosers, fuses, interruptors,
16-21 reactors, arrestors, resistors, insulators, instrument
16-22 transformers, and telemetry units that are related to the
16-23 transformers, electronic control room equipment, computerized
16-24 control units, pumps, compressors, and hydraulic units, that are
16-25 used to power, supply, support, or control equipment that qualifies
16-26 for exemption under Subdivision (2) or (5) or to generate
17-1 electricity, chilled water, or steam for ultimate sale;
17-2 transformers located at an electric generating facility that
17-3 increase the voltage of electricity generated for ultimate sale,
17-4 the electrical cable that carries the electricity from the electric
17-5 generating equipment to the step-up transformers, and the switches,
17-6 breakers, capacitor banks, regulators, relays, reclosers, fuses,
17-7 interruptors, reactors, arrestors, resistors, insulators,
17-8 instrument transformers, and telemetry units that are related to
17-9 the step-up transformers; and transformers that decrease the
17-10 voltage of electricity generated for ultimate sale and the
17-11 switches, breakers, capacitor banks, regulators, relays, reclosers,
17-12 fuses, interruptors, reactors, arrestors, resistors, insulators,
17-13 instrument transformers, and telemetry units that are related to
17-14 the step-down transformers;
17-15 (5) tangible personal property used or consumed in the
17-16 actual manufacturing, processing, or fabrication of tangible
17-17 personal property for ultimate sale if the use or consumption of
17-18 the property is necessary and essential to a pollution control
17-19 process;
17-20 (6) lubricants, chemicals, chemical compounds, gases,
17-21 or liquids that are used or consumed during the actual
17-22 manufacturing, processing, or fabrication of tangible personal
17-23 property for ultimate sale if their use or consumption is necessary
17-24 and essential to prevent the decline, failure, lapse, or
17-25 deterioration of equipment exempted by this section;
17-26 (7) gases used on the premises of a manufacturing
18-1 plant to prevent contamination of raw material or product, or to
18-2 prevent a fire, explosion, or other hazardous or environmentally
18-3 damaging situation at any stage in the manufacturing process or in
18-4 loading or storage of the product or raw material on premises;
18-5 (8) tangible personal property used or consumed during
18-6 the actual manufacturing, processing, or fabrication of tangible
18-7 personal property for ultimate sale if the use or consumption of
18-8 the property is necessary and essential to a quality control
18-9 process for the purpose of testing tangible personal property that
18-10 is being manufactured, processed, or fabricated for ultimate sale;
18-11 (9) safety apparel or work clothing that is used
18-12 during the actual manufacturing, processing, or fabrication of
18-13 tangible personal property for ultimate sale if:
18-14 (A) the manufacturing process would not be
18-15 possible without the use of the apparel or clothing; and
18-16 (B) the apparel or clothing is not resold to the
18-17 employee;
18-18 (10) tangible personal property used or consumed in
18-19 the actual manufacturing, processing, or fabrication of tangible
18-20 personal property for ultimate sale if the use or consumption of
18-21 the property is necessary and essential to comply with federal,
18-22 state, or local laws or rules that establish requirements related
18-23 to public health; and
18-24 (11) tangible personal property specifically installed
18-25 to:
18-26 (A) reduce water use and wastewater flow volumes
19-1 from the manufacturing, processing, fabrication, or repair
19-2 operation;
19-3 (B) reuse and recycle wastewater streams
19-4 generated within the manufacturing, processing, fabrication, or
19-5 repair operation; or
19-6 (C) treat wastewater from another industrial or
19-7 municipal source for the purpose of replacing existing freshwater
19-8 sources in the manufacturing, processing, fabrication, or repair
19-9 operation.
19-10 SECTION 22. Section 151.318(t), Tax Code, is amended to read
19-11 as follows:
19-12 (t) In addition to the other items exempted under this
19-13 section, pre-press machinery, equipment, and supplies, including
19-14 computers, cameras, photographic props, film, film developing
19-15 chemicals, veloxes, plate-making machinery, plate metal, litho
19-16 negatives, color separation negatives, proofs of color negatives,
19-17 production art work, and typesetting or composition proofs, that
19-18 are necessary and essential to and used in connection with the
19-19 printing process are exempted from the tax imposed by this chapter
19-20 if they are purchased by a person engaged in:
19-21 (1) printing or imprinting tangible personal property for
19-22 sale; or
19-23 (2) producing a publication for the dissemination of news of
19-24 a general character and of a general interest that is printed on
19-25 newsprint and distributed to the general public free of charge at a
19-26 daily, weekly, or other short interval.
20-1 SECTION 23. Section 151.3185, Tax Code, is amended by adding
20-2 Subsections (e) and (f), to read as follows:
20-3 (e) The sale of a motion picture, video, or audio master by
20-4 the producer of the master is exempt from the taxes imposed by this
20-5 chapter.
20-6 (f) Tangible personal property that is sold to an entity
20-7 described in 47 C.F.R. Sec. 73.624(b) is exempt from the taxes
20-8 imposed by this chapter if the property is necessary to comply with
20-9 47 C.F.R. Sec. 73.682(d).
20-10 SECTION 24. Section 151.319(b), Tax Code, is amended to read
20-11 as follows:
20-12 (b) A transaction involving a sale of a newspaper that has
20-13 been produced, fabricated, or printed to the special order of a
20-14 customer is exempted from the taxes imposed by this chapter if:
20-15 (1) the customer is responsible for gathering
20-16 substantially all of the information contained in the newspaper and
20-17 for formulating the design, layout, and format of the newspaper;
20-18 and
20-19 (2) the customer would be entitled to the exemption
20-20 provided by Section 151.318(t) [Subsection (d) of this section] if
20-21 the customer had a printing facility capable of processing and
20-22 printing the newspaper and printed and processed the newspaper.
20-23 SECTION 25. Section 152.001, Tax Code, is amended by adding
20-24 subdivision (20) to read as follows:
20-25 (20) "Machine for use primarily for timber operations" means
20-26 a self-propelled motor vehicle specially adapted to perform a
21-1 specialized function in the production of timber including land
21-2 preparation, planting, maintenance, and gathering of trees commonly
21-3 grown for commercial timber. "Machine for use primarily for timber
21-4 operations" does not include any self-propelled motor vehicle used
21-5 for the purpose of transporting timber or timber products.
21-6 SECTION 26. Section 152.002, Tax Code, is amended by adding
21-7 subsection (e) to read as follows:
21-8 (e) A motor vehicle owner who is in the business of renting
21-9 motor vehicles and who holds a permit may deduct the fair market
21-10 value of a replaced motor vehicle that is titled to another person
21-11 if:
21-12 (1) either person:
21-13 (A) holds a beneficial ownership interest in the
21-14 other person of at least 80 percent, or
21-15 (B) acquires all of its vehicles exclusively
21-16 from franchised dealers whose franchisor shares common ownership
21-17 with the other person; and
21-18 (2) the replaced motor vehicle is offered for sale.
21-19 SECTION 27. Section 152.041, Tax Code, is amended by
21-20 amending subsection (c) and (d) and adding subsection (f), to read
21-21 as follows:
21-22 (c) Except as provided by Section 152.047 and subsection (f)
21-23 of this section, the tax imposed by Section 152.021 of this code is
21-24 due on the 20th working day after the day that the motor vehicle is
21-25 delivered to the purchaser.
21-26 (d) Except as provided by subsection (f) of this section,
22-1 the [The] tax imposed by Section 152.022 of this code is due on the
22-2 20th working day after the day that the motor vehicle is brought
22-3 into this state.
22-4 (f) The tax imposed by Section 152.021 and 152.022 of this
22-5 code on a motor vehicle designed for commercial use is due on the
22-6 20th working day after the day it is equipped with a body or other
22-7 equipment that enables it to be eligible to be registered under the
22-8 Transportation Code.
22-9 SECTION 28. Section 152.047(a), Tax Code, is amended to read
22-10 as follows:
22-11 (a) Except as inconsistent with this chapter and rules
22-12 adopted under this chapter, the seller of a motor vehicle shall
22-13 report and pay the tax imposed on a seller-financed sale to the
22-14 comptroller on the seller's receipts from seller-financed sales in
22-15 the same manner as the sales tax is reported by a retailer under
22-16 Sections 151.401, 151.402, 151.405, 151.406, 151.409, 151.423,
22-17 151.424, and 151.425 [Chapter 151].
22-18 SECTION 29. Subdivision (25), Section 153.001, Tax Code, is
22-19 amended to read as follows:
22-20 (25) "Supplier" means a person who:
22-21 (A) refines, distills, manufactures, produces, or
22-22 blends for sale or distribution diesel fuel in this state;
22-23 (B) imports or exports diesel fuel other than in the
22-24 fuel supply tanks of motor vehicles;
22-25 (C) sells or delivers diesel fuel in bulk quantities
22-26 to dealers, dyed diesel fuel bonded users, agricultural bonded
23-1 users, bulk users, aviation fuel dealers, or other suppliers; or
23-2 (D) is engaged in the business of selling or
23-3 delivering diesel fuel in bulk quantities to consumers for
23-4 nonhighway uses.
23-5 SECTION 30. Section 153.018(i), Tax Code, is amended to read
23-6 as follows:
23-7 (i) Each terminal or bulk plant shall post a notice in a
23-8 conspicuous location proximate to the point of receipt of shipping
23-9 papers that describes the duties of importers and exporters under
23-10 this section. The comptroller may prescribe the language, type,
23-11 style, and format of the notice.
23-12 SECTION 31. Section 153.115(c), Tax Code, is amended to read
23-13 as follows:
23-14 (c) A permitted interstate trucker is entitled to deduct
23-15 one-half of one percent of the taxable gallons of gasoline on
23-16 timely payment of the taxes to the state for the expense of
23-17 recordkeeping, reporting, and remitting the tax.
23-18 SECTION 32. Section 153.117(a), Tax Code, is amended to read
23-19 as follows:
23-20 (a) A distributor shall keep:
23-21 (1) a record showing the number of gallons of:
23-22 (A) all gasoline inventories on hand at the
23-23 first of each month;
23-24 (B) all gasoline refined, compounded, or
23-25 blended;
23-26 (C) all gasoline purchased or received, showing
24-1 the name of the seller and the date of each purchase of receipt.
24-2 (D) all gasoline sold, distributed, or used,
24-3 showing the name of the purchaser and the date of the sale or use;
24-4 and
24-5 (E) all gasoline lost by fire, theft, or
24-6 accident; and
24-7 (2) an itemized statement showing by load the number
24-8 of gallons of all gasoline:
24-9 (A) received during the preceding calendar month
24-10 for export and the location of the loading;
24-11 (B) exported from this state by destination
24-12 state or country; and
24-13 (C) imported during the preceding calendar month
24-14 by origin [destination] state or country.
24-15 SECTION 33. Section 153.122, Tax Code, is amended to read as
24-16 follows:
24-17 Sec. 153.122. GASOLINE TAX REFUND PAYMENT [AND FILING FEE].
24-18 [(a)] After examination of the refund claim, the comptroller
24-19 before issuing a refund warrant shall deduct from the amount of the
24-20 refund[:]
24-21 [(1)] the two percent deducted originally by the
24-22 distributor on the first sale or distribution of the gasoline[;
24-23 and]
24-24 [(2) $1.50 as a filing fee].
24-25 [(b) The filing fee shall be set aside for the use and
24-26 benefit of the comptroller in the administration and enforcement of
25-1 this section. All filing fees shall be paid into the state
25-2 treasury and shall be paid out on vouchers and warrants in the
25-3 manner prescribed by law.]
25-4 SECTION 34. Section 153.205, Tax Code, is amended to read as
25-5 follows:
25-6 (a) The first sale or use of diesel fuel in this state is
25-7 taxable, except that sales of dyed diesel fuel, or of undyed diesel
25-8 fuel if the fuel will be used for an agricultural nonhighway
25-9 purpose, may be made without collecting the tax if the purchaser
25-10 furnishes to a permitted supplier a signed statement, including an
25-11 end user number or agricultural [user] exemption number issued by
25-12 the comptroller [that stipulates that:]. A person who wants to use
25-13 a signed statement to purchase dyed diesel fuel must apply to the
25-14 comptroller for an end user number to be used in conjunction with a
25-15 signed statement. A person who wants to use a signed statement to
25-16 purchase dyed or undyed diesel fuel for an agricultural nonhighway
25-17 purpose must apply to the comptroller for an agricultural exemption
25-18 number to be used in conjunction with a signed statement. A
25-19 supplier may not make a tax-free sale of any diesel fuel to a
25-20 purchaser using a signed statement unless the purchaser has an end
25-21 user number or agricultural exemption number issued by the
25-22 comptroller under this section
25-23 [(1) the purchaser does not operate any diesel powered
25-24 motor vehicles on the public highway;]
25-25 [(2) all of the diesel fuel will be consumed by the
25-26 purchaser and no diesel fuel purchased on a signed statement will
26-1 be resold; and]
26-2 [(3) none of the diesel fuel purchased in this state
26-3 will be delivered or permitted by the purchaser to be delivered
26-4 into fuel supply tanks of motor vehicles].
26-5 (b) The sale of dyed diesel fuel may be made without
26-6 collecting the tax if the purchaser furnishes to a permitted
26-7 supplier a signed statement, including an end user number issued by
26-8 the comptroller, that stipulates that [A person may not make a tax
26-9 free purchase of any diesel fuel under this section using a signed
26-10 statement]:
26-11 (1) none of the diesel fuel purchased on the signed
26-12 statement is of a type that may legally be used on the public
26-13 highway [for the purchase of more than 3,000 gallons of dyed or
26-14 undyed diesel fuel in a single transaction; or];
26-15 (2) all of the dyed diesel fuel purchased on the
26-16 signed statement will be consumed by the purchaser and will not be
26-17 resold [in a calendar month in which the person has previously
26-18 purchased more than 10,000 gallons of dyed or undyed diesel fuel
26-19 from all sources]; and
26-20 (3) none of the dyed diesel fuel purchased on the
26-21 signed statement will be delivered or permitted to be delivered
26-22 into the fuel supply tank of motor vehicles operated on the public
26-23 highways in this state.
26-24 (c) The sale of dyed or undyed diesel fuel may be made
26-25 without collecting the tax if the purchaser furnishes to a
26-26 permitted supplier a signed statement, including an agricultural
27-1 exemption number issued by the comptroller, that stipulates that
27-2 [The signed statement and end user number or agricultural user
27-3 exemption number from the purchaser relieves the permitted supplier
27-4 from the burden of proof that the sale of diesel fuel was not
27-5 taxable to the purchaser and remains in effect unless]:
27-6 (1) all of the dyed and undyed diesel fuel purchased
27-7 on this signed statement will be used exclusively in agricultural
27-8 nonhighway equipment [the statement is revoked in writing by the
27-9 purchaser or supplier];
27-10 (2) all of the dyed and undyed diesel fuel purchased
27-11 on this signed statement will be consumed by the purchaser and will
27-12 not be resold [the comptroller notifies the supplier in writing
27-13 that the purchaser may no longer make tax free purchases]; and [or]
27-14 (3) none of the dyed or undyed diesel fuel purchased
27-15 on this signed statement will be delivered or permitted to be
27-16 delivered into the fuel tanks of motor vehicles operated on the
27-17 public highways in this state [the supplier is put on notice by
27-18 making taxable sales of diesel fuel to a purchaser who has
27-19 previously submitted a signed statement to this supplier].
27-20 (d) A person may not make a tax-free purchase of any diesel
27-21 fuel under this section using a signed statement [A taxable sale to
27-22 a person who has previously submitted a signed statement creates a
27-23 rebuttable presumption that the supplier had reasonable notice that
27-24 all subsequent sales should have been taxable]:
27-25 (1) for the purchase of more than 3,000 gallons of
27-26 dyed or undyed diesel fuel in a single transaction or delivery; or
28-1 (2) in a calendar month in which the person has
28-2 previously purchased more than 10,000 gallons of dyed or undyed
28-3 diesel fuel from all sources, and
28-4 (3) the number of gallons purchased in excess of the
28-5 3,000 gallon in a single transaction or delivery or the number of
28-6 gallons purchased in excess of 10,000 gallons in a calendar month
28-7 constitutes a taxable purchase. The purchaser paying the tax on
28-8 dyed or undyed diesel fuel in excess of the limitations provided in
28-9 this subsection may claim a refund of the tax paid on any dyed or
28-10 undyed diesel fuel used for nonhighway purposes under Section
28-11 153.222.
28-12 (e) A supplier may not make a tax-free sale of any diesel
28-13 fuel under this section to a purchaser using a signed statement [A
28-14 taxable use of any part of the dyed or undyed diesel fuel purchased
28-15 under a signed statement shall, in addition to any criminal
28-16 penalty, forfeit the right of the person to purchase dyed or undyed
28-17 diesel fuel tax free for a period of one year from the date of the
28-18 offense, and any tax, interest, and penalty found to be due through
28-19 false or erroneous execution or continuance of a promissory
28-20 statement by the purchaser, if assessed to the supplier, is a debt
28-21 of the purchaser to the supplier until paid, and is recoverable at
28-22 law in the same manner as the purchase price of the fuel. The
28-23 person may, however, claim a refund of the tax paid on any undyed
28-24 diesel fuel used for nonhighway purposes under Section 153.222]:
28-25 (1) for the sale of more than 3,000 gallons of dyed or
28-26 undyed diesel fuel in a single transaction or delivery; or
29-1 (2) in a calendar month in which the supplier has
29-2 previously sold more than 10,000 gallons of dyed or undyed diesel
29-3 fuel to the purchaser, and
29-4 (3) the number of gallons sold in excess of the 3,000
29-5 gallon in a single transaction or delivery or the number of gallons
29-6 sold in excess of 10,000 gallons in a calendar month constitutes a
29-7 taxable sale. The purchaser paying the tax on dyed or undyed
29-8 diesel fuel in excess if the limits provided in this subsection may
29-9 claim a refund of the tax paid on any dyed or undyed diesel fuel
29-10 used for nonhighway purposes under Section 153.222.
29-11 (f) The signed statement and end user number or agricultural
29-12 exemption number from the purchaser as provided by this section
29-13 relieves the permitted supplier from the burden of proof that the
29-14 sale of dyed diesel fuel or undyed diesel fuel for an agricultural
29-15 nonhighway purpose was not taxable to the purchaser and remains in
29-16 effect unless [The statement must be signed by the purchaser or his
29-17 representative]:
29-18 (1) The statement is revoked in writing by the
29-19 purchaser or supplier; or
29-20 (2) the comptroller notifies the supplier in writing
29-21 that the purchaser may no longer make tax-free purchases.
29-22 (g) A taxable use of any part of the dyed or undyed diesel
29-23 fuel purchased under a signed statement shall, in addition to any
29-24 criminal penalty, forfeit the right of the person to purchase dyed
29-25 or undyed diesel fuel tax-free for a period of one year from the
29-26 date of the offense, and any tax, penalty, interest, and penalty
30-1 found to be due through false or erroneous execution or continuance
30-2 of a promissory statement by the purchaser, if assessed to the
30-3 supplier, is debt of the purchaser to the supplier until paid, and
30-4 is recoverable at law in the same manner as the purchase price of
30-5 the fuel. The person may, however, claim a refund of the tax paid
30-6 on any undyed diesel fuel used for nonhighway purposes under
30-7 section 153.222. [The comptroller's regulations may allow separate
30-8 operating divisions of corporations to give separate signed
30-9 statements as if they were different legal entities.]
30-10 [(h) The comptroller may promulgate necessary forms and
30-11 rules to administer and enforce this section.]
30-12 [(i) A permitted supplier may not make a tax free sale of
30-13 dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
30-14 to a purchaser using a signed statement:]
30-15 [(1) for the sale of more than 3,000 gallons of dyed
30-16 or undyed diesel fuel in a single transaction; or]
30-17 [(2) in a calendar month in which the supplier has
30-18 previously sold more than 10,000 gallons of dyed or undyed diesel
30-19 fuel to the purchaser.]
30-20 [(j) (1) A sale of dyed diesel fuel, or undyed diesel fuel
30-21 for agricultural purposes, may be made without collecting tax from
30-22 a purchaser who operates one or more motor vehicles on the public
30-23 highway and who furnishes to a permitted supplier a signed
30-24 statement and end user number or agricultural user exemption number
30-25 only as provided in this subsection.]
30-26 [(2) The statement must stipulate that all the dyed or
31-1 undyed diesel fuel will be consumed by the purchaser for purposes
31-2 other than operating a motor vehicle on the public highway and that
31-3 no dyed or undyed diesel fuel purchased on a signed statement will
31-4 be resold or delivered into the fuel supply tanks of a motor
31-5 vehicle.]
31-6 [(3) Diesel fuel which may be sold without collection
31-7 of tax under this subsection must be of a type that may not be
31-8 legally used by the purchaser for the operation of a motor vehicle
31-9 on the public highway under state or federal law.]
31-10 [(4) Subsections (a), (c)(3), and (d) of this section
31-11 do not apply to sales of fuel under this subsection.]
31-12 [(k) A person who wants to use a signed statement to
31-13 purchase dyed diesel fuel must apply to the comptroller for an end
31-14 user number to be used in conjunction with a signed statement. A
31-15 person who wants to use a signed statement to purchase dyed or
31-16 undyed diesel fuel for agricultural purposes must apply to the
31-17 comptroller for an agricultural user exemption number to be used in
31-18 conjunction with a signed statement. A person may not make a tax
31-19 free sale of any diesel fuel to a purchaser using a signed
31-20 statement unless the purchaser has an end user number or
31-21 agricultural user exemption number issued by the comptroller under
31-22 this subsection.]
31-23 SECTION 35. Section 153.206(c), Tax Code, is amended to read
31-24 as follows:
31-25 (c) A dyed diesel fuel bonded user, agricultural bonded
31-26 user, or other user, except a diesel tax prepaid user, shall report
32-1 and pay to the state the tax at the rate imposed on each gallon of
32-2 diesel fuel delivered by him into the fuel supply tanks of a motor
32-3 vehicle, unless the tax has been paid to a permitted supplier or a
32-4 dealer, or, as a diesel tax prepaid user, the tax has been prepaid
32-5 directly to the comptroller.
32-6 SECTION 36. Section 153.206(i), Tax Code, is amended to read
32-7 as follows:
32-8 (i) A dyed diesel fuel bonded user, an agricultural bonded
32-9 user, or a permitted interstate trucker is entitled to deduct
32-10 one-half of one percent of the taxable gallons of diesel fuel on
32-11 timely payment of the taxes to this state for the expense of
32-12 recordkeeping, reporting, and remitting the tax.
32-13 SECTION 37. The heading of Section 153.217, Tax Code, is
32-14 amended to read as follows:
32-15 Sec. 153.217. LIST OF SUPPLIERS, DYED DIESEL FUEL BONDED
32-16 USERS, AGRICULTURAL BONDED USERS, AVIATION FUEL DEALERS, AND DIESEL
32-17 FUEL JOBBERS.
32-18 SECTION 38. Section 153.219(j), Tax Code, is amended to read
32-19 as follows:
32-20 (j) A supplier shall keep:
32-21 (1) an itemized statement showing by load the number
32-22 of gallons of all diesel fuel received during the preceding
32-23 calendar month for export;
32-24 (2) an itemized statement showing by load the number
32-25 of gallons of all diesel fuel exported from this state by
32-26 destination state or country;
33-1 (3) an itemized statement showing by load the number
33-2 of gallons of all diesel fuel imported during the preceding
33-3 calendar month by origin [destination] state or country;
33-4 (4) an itemized statement differentiating between dyed
33-5 and undyed diesel fuel and showing by purchaser, end user number,
33-6 or agricultural user exemption number the number of gallons of dyed
33-7 and undyed diesel fuel sold tax free to a purchaser using a signed
33-8 statement in accordance with Section 153.205; and
33-9 (5) an itemized statement showing by purchaser and
33-10 permit number the number of gallons of dyed and undyed diesel fuel
33-11 sold tax free to dyed diesel fuel bonded users and agricultural
33-12 bonded users.
33-13 SECTION 39. Subsections (a) and (c), Section 153.221, Tax
33-14 Code, are amended to read as follows:
33-15 (a) On or before the 25th day of each month, a supplier, a
33-16 dealer required to collect the tax under Section 153.206(b), or a
33-17 dyed diesel fuel bonded user, agricultural bonded user, or other
33-18 user required to pay the tax under Section 153.206(c) shall file a
33-19 report of diesel fuel transactions or of diesel fuel delivered by a
33-20 dyed diesel fuel bonded user, agricultural bonded user, or other
33-21 user into the fuel tank of a motor vehicle owned or operated by the
33-22 user and such supplements as the comptroller may require and remit
33-23 the amount of tax required to be collected or to be paid during the
33-24 preceding month. A report must be filed on a form or in a manner
33-25 provided by the comptroller and contain information required by the
33-26 comptroller, showing complete and detailed information of diesel
34-1 fuel transactions or use during the preceding month. A supplier
34-2 required to file a report under this section who has not sold,
34-3 used, or distributed any diesel fuel during the reporting period
34-4 shall file with the comptroller the report setting forth the facts
34-5 or information. The failure of a supplier, dealer, dyed diesel
34-6 fuel bonded user, agricultural bonded user, or other user to obtain
34-7 forms or software from the comptroller is no excuse for the failure
34-8 to file a report. The report must be executed by the supplier,
34-9 dealer, dyed diesel fuel bonded user, agricultural bonded user, or
34-10 other user, or his representative and is subject to the penalties
34-11 provided in this chapter.
34-12 (c) No report is required to be filed by:
34-13 (1) an aviation fuel dealer;
34-14 (2) a trip permit user;
34-15 (3) a diesel tax prepaid user;
34-16 (4) a person issuing signed statements; or
34-17 (5) [a common or contract carrier; or]
34-18 [(6)] a diesel fuel jobber.
34-19 SECTION 40. Section 153.225, Tax Code, is amended to read as
34-20 follows:
34-21 Sec. 153.225. DIESEL FUEL TAX REFUND PAYMENTS [AND FILING
34-22 FEE]. [(a)] After examination and approval of the refund claim,
34-23 the comptroller before issuing a refund warrant shall deduct from
34-24 the amount of the refund payment[:]
34-25 [(1)] the 2 percent deducted originally by the
34-26 supplier on the sale or delivery of the diesel fuel[; and]
35-1 [(2) $1.50 as a filing fee].
35-2 [(b) The filing fees shall be set aside for the use and
35-3 benefit of the comptroller in the administration and enforcement of
35-4 the provisions of this chapter, and for payment of expenses in
35-5 furnishing the claim forms and other forms. All filing fees shall
35-6 be paid into the state treasury and shall be paid out on vouchers
35-7 and warrants in the manner prescribed by law.]
35-8 SECTION 41. Subsections (c) and (d), Section 153.308, Tax
35-9 Code, are amended to read as follows:
35-10 (c) The tax on one percent of the taxable gallons of
35-11 liquefied gas sold in this state shall be allocated to the
35-12 permitted dealer making the sale for the expense of collecting,
35-13 accounting for, reporting, and timely remitting the taxes collected
35-14 and keeping the records. The allocation allowance shall be
35-15 deducted by the permitted dealers in the payment to the state.
35-16 (d) The tax of one-half of one percent of the taxable
35-17 gallons of liquefied gas used in this state by persons permitted as
35-18 interstate truckers shall be allocated to the interstate trucker
35-19 making use of the liquefied gas for the expense of accounting for,
35-20 reporting, and timely remitting the taxes due.
35-21 SECTION 42. Section 153.311(c), Tax Code, is amended to read
35-22 as follows:
35-23 (c) A permitted interstate trucker is entitled to a refund
35-24 of the amount of the Texas liquefied gas tax paid on each gallon of
35-25 liquefied gas subsequently used outside this state. On
35-26 verification by the comptroller that the interstate trucker's
36-1 report was timely filed with all information required, the
36-2 comptroller [he] shall issue a warrant to the interstate trucker
36-3 for the amount of the refund less the one percent deducted
36-4 originally by the permitted dealer making the sale [and a filing
36-5 fee of $1.50]. Failure to file an interstate trucker report by the
36-6 25th of the month following the end of a calendar quarter forfeits
36-7 the right to a refund.
36-8 SECTION 43. Subsections (a), (b), and (h), Section 154.101,
36-9 Tax Code, are amended to read as follows:
36-10 (a) A person may not engage in business as a distributor,
36-11 wholesaler, bonded agent, manufacturer, importer, or retailer
36-12 unless the person has applied for and received the applicable
36-13 permit from the comptroller.
36-14 (b) Each distributor, wholesaler, bonded agent,
36-15 manufacturer, importer, or retailer shall obtain a permit for each
36-16 place of business owned or operated by the distributor, wholesaler,
36-17 bonded agent, manufacturer, importer, or retailer.
36-18 (h) Permits for engaging in business as distributor,
36-19 wholesaler, bonded agent, manufacturer, importer, or retailer shall
36-20 be governed exclusively by the provisions of this code.
36-21 SECTION 44. Subsections (a), (b), and (h), Section 155.041,
36-22 Tax Code, are amended to read as follows:
36-23 (a) A person may not engage in business as a distributor,
36-24 wholesaler, bonded agent, manufacturer, importer, or retailer
36-25 unless the person has applied for and received the applicable
36-26 permit from the comptroller.
37-1 (b) Each distributor, wholesaler, bonded agent,
37-2 manufacturer, importer, or retailer shall obtain a permit for each
37-3 business owned or operated by the distributor, wholesaler, bonded
37-4 agent or retailer.
37-5 (h) Permits for engaging in business as a distributor,
37-6 wholesaler, bonded agent, manufacturer, importer, or retailer shall
37-7 be governed exclusively by the provisions of this code.
37-8 SECTION 45. Section 155.102, Tax Code, is amended by adding
37-9 subsection (c) to read as follows:
37-10 (c) If more than fifty percent of all untaxed tobacco
37-11 products received by the distributor in this state are actually
37-12 sold outside of the state, then the distributor shall include in
37-13 the report only tobacco products that are sold in this state.
37-14 SECTION 46. Section 171.1032(a) is amended by adding
37-15 Subdivision (6) and by redesignating Subdivision (6) as Subdivision
37-16 (7), to read as follows:
37-17 (a) Except for the gross receipts of a corporation that are
37-18 subject to Section 171.1061, in apportioning taxable earned
37-19 surplus, the gross receipts of a corporation from its business done
37-20 in this state is the sum of the corporation's receipts from:
37-21 (1) each sale of tangible personal property if the
37-22 property is delivered or shipped to a buyer in this state
37-23 regardless of the FOB point or another condition of the sale, and
37-24 each sale of tangible personal property shipped from this state to
37-25 a purchaser in another state in which the seller is not subject to
37-26 any tax on, or measured by, net income, without regard to whether
38-1 the tax is imposed;
38-2 (2) each service performed in this state;
38-3 (3) each rental of property situated in this state;
38-4 (4) the use of a patent, copyright, trademark,
38-5 franchise, or license in this state;
38-6 (5) each sale of real property located in this state,
38-7 including royalties from oil, gas, or other mineral interests;
38-8 [and]
38-9 (6) the corporation's share of the gross receipts of
38-10 each partnership and joint venture, apportioned to Texas as though
38-11 the corporation directly earned the receipts, including receipts
38-12 from business done with the corporation; and
38-13 (7) other business done in this state.
38-14 SECTION 47. Section 171.1051(a), Tax Code is amended to read
38-15 as follows:
38-16 (a) Except for the gross receipts of a corporation that are
38-17 subject to the provisions of Section 171.1061, in apportioning
38-18 taxable earned surplus, the gross receipts of a corporation from
38-19 its entire business is the sum of the corporation's receipts from:
38-20 (1) each sale of the corporation's tangible personal
38-21 property;
38-22 (2) each service, rental, or royalty; [and]
38-23 (3) the corporation's share of the gross receipts of
38-24 each partnership and joint venture; and
38-25 (4) other business.
38-26 SECTION 48. Section 171.106, Tax Code, is amended by adding
39-1 subsection (h), to read as follows:
39-2 (h) A banking corporation shall exclude from the numerator
39-3 of its apportionment factor interest earned on Federal Funds and
39-4 interest earned on securities sold under agreement to repurchase
39-5 held in Texas in a Texas-domiciled correspondent bank. For
39-6 purposes of this subsection, the term "correspondent bank" shall
39-7 have the meaning set for in 12 C.F.R. Section 206.2(c).
39-8 SECTION 49. Section 171.109, Tax Code, is amended by adding
39-9 subsection (n) to read as follows:
39-10 (n) A corporation must use the equity method of accounting
39-11 when reporting an investment in a partnership or joint venture.
39-12 SECTION 50. Section 171.1121, Tax Code is amended by adding
39-13 Subsection (e) to read as follows:
39-14 (e) A corporation's share of a partnership's gross receipts
39-15 that is included in its federal taxable income must be used in
39-16 calculating the corporation's gross receipts for earned surplus
39-17 purposes. A corporation's share of a partnership's gross receipts
39-18 is without deduction for costs incurred, unless otherwise provided
39-19 in this chapter. The gross receipts must be apportioned as though
39-20 the corporation directly earned them.
39-21 SECTION 51. Section 171.260(b), Tax Code, is amended to read
39-22 as follows:
39-23 (b) The savings and loan commissioner shall appoint a
39-24 conservator under Subtitle B or C, Title 3, Finance Code, to pay
39-25 the franchise tax of a savings and loan association [corporation]
39-26 that is organized under the laws of this state and that the
40-1 commissioner certifies as being delinquent in the payment of the
40-2 association's [corporation's] franchise tax.
40-3 SECTION 52. Section 171.501(d), Tax Code, is amended to read
40-4 as follows:
40-5 (d) The amount of a refund under this section is the lesser
40-6 of $5,000 or 25 percent of the amount of franchise tax due [taxes
40-7 paid] for any one privilege period before any other applicable
40-8 credits. For purposes of this subsection, the initial and second
40-9 periods are considered the same privilege period.
40-10 SECTION 53. Section 171.655, Tax Code, is amended to read as
40-11 follows:
40-12 Sec. 171.655. Limitation. The credit claimed for each
40-13 privilege period may not exceed 50 percent of the amount of [net]
40-14 franchise tax due for the privilege period before [after] any other
40-15 applicable tax credits.
40-16 SECTION 54. Section 171.685, Tax Code, is amended to read as
40-17 follows:
40-18 Sec. 171.685. Limitation. The total credits claimed under
40-19 this subchapter for a privilege period may not exceed 50 percent of
40-20 the amount of [net] franchise tax due for the privilege period
40-21 before [after] any other applicable tax credits.
40-22 SECTION 55. Section 171.705(b), Tax Code, is amended to read
40-23 as follows:
40-24 (b) A corporation may not claim a credit in an amount that
40-25 exceeds 90 percent of the amount of tax due for the report before
40-26 any other applicable credits.
41-1 SECTION 56. Section 171.753, Tax Code, is amended to read as
41-2 follows:
41-3 Sec. 171.753. CALCULATION OF CREDIT. A corporation may
41-4 establish a credit equal to 5 [25] percent of the total wages and
41-5 salaries paid by the corporation for qualifying jobs during the
41-6 period upon which the tax is based.
41-7 SECTION 57. Section 171.754, Tax Code, is amended to read as
41-8 follows:
41-9 Sec. 171.754. Length of Credit. The credit shall be
41-10 established [shall be claimed in five equal installments of
41-11 one-fifth the credit amount over the] on five consecutive reports
41-12 beginning with the report based upon the period during which the
41-13 qualifying jobs were created.
41-14 SECTION 58. Section 171.756, Tax Code, is amended to read as
41-15 follows:
41-16 Sec. 171.756. CARRYFORWARD. (a) If a corporation is
41-17 eligible for a credit [from an installment] that exceeds the
41-18 limitations under Section 171.755(a) or (b), the corporation may
41-19 carry the unused credit forward for not more than five consecutive
41-20 reports.
41-21 (b) A carryforward is considered the remaining portion of a
41-22 credit [an installment] that cannot be claimed in the current year
41-23 because of the tax limitation under Section 171.755. A carryforward
41-24 is added to the next year's [installment of the] credit in
41-25 determining the tax limitation for that year. A credit
41-26 carryforward from a previous report is considered to be utilized
42-1 before the current year credit [installment].
42-2 SECTION 59. Section 171.831, Tax Code, is amended to read as
42-3 follows:
42-4 Sec. 171.831. DEFINITION. In this subchapter, "school-age
42-5 child care" means care provided before or [and] after school and
42-6 during the summer and holidays for children who are at least five
42-7 years of age but younger than 14 years of age.
42-8 SECTION 60. Section 171.834(c), Tax Code, is amended to read
42-9 as follows:
42-10 (c) A corporation may not claim a credit in an amount that
42-11 exceeds 50 percent of the amount of [net] franchise tax due, before
42-12 [after] applying any other credits, for the reporting period.
42-13 SECTION 61. Chapter 171, Tax Code, is amended by adding
42-14 Subchapter S to read as follows:
42-15 SUBCHAPTER S. CREDITS LIMITATION
42-16 Sec. 171.851. LIMITATION. The total credits claimed under
42-17 this chapter for a report, including the amount of any carryforward
42-18 credits, may not exceed the amount of franchise tax due for the
42-19 report.
42-20 SECTION 62. Section 211.055, Tax Code, is amended to read as
42-21 follows:
42-22 Sec. 211.055. MAXIMUM TAX. The amount of taxes imposed by
42-23 this chapter shall not exceed the amount of the tax imposed under
42-24 Section 2001, Internal Revenue Code, reduced by the unified credit
42-25 provided under Section 2010, Internal Revenue Code [The amount of
42-26 taxes imposed by this chapter, when added to the federal tax as
43-1 finally assessed and determined, may not exceed the amount of the
43-2 federal tax which, without application of this chapter and the
43-3 federal credit and generation skipping transfer tax credit to which
43-4 it refers, would otherwise be payable to the federal government
43-5 under Subtitle B, Chapters 11 and 13, Internal Revenue Code].
43-6 SECTION 63. Subchapter D, Chapter 321, Tax Code, is amended
43-7 by adding Section 321.312 to read as follows:
43-8 Sec. 321.312. RETENTION OF CERTAIN MUNICIPAL SALES TAXES. A
43-9 municipality that holds a sales and use tax permit issued by the
43-10 comptroller and that imposes a municipal sales and use tax may
43-11 retain the portion of the municipal sales and use taxes that it
43-12 collects that constitute its own tax. The municipality must remit
43-13 to the comptroller all other applicable local sales and use taxes
43-14 and the state sales and use tax.
43-15 SECTION 64. Subchapter D, Chapter 322, Tax Code, is amended
43-16 by adding Section 322.306 to read as follows:
43-17 Sec. 322.306. RETENTION OF CERTAIN SPECIAL PURPOSE DISTRICT
43-18 SALES TAXES. A special purpose district that holds a sales and use
43-19 tax permit issued by the comptroller and that imposes a special
43-20 purpose district sales and use tax may retain the portion of the
43-21 special purpose district sales taxes that it collects that
43-22 constitute its own tax. The special purpose district must remit to
43-23 the comptroller all other applicable local sales and use taxes and
43-24 the state sales and use tax.
43-25 SECTION 65. Subchapter D of Chapter 323, Tax Code, is
43-26 amended by adding Section 323.312, to read as follows:
44-1 Sec. 323.312. RETENTION OF CERTAIN COUNTY SALES TAXES. A
44-2 county that holds a sales and use tax permit issued by the
44-3 comptroller and that imposes a county sales and use tax may retain
44-4 the portion of the county sales and use taxes that relate to its
44-5 own tax. The county must remit to the comptroller all other
44-6 applicable local sales and use taxes and the state sales and use
44-7 tax.
44-8 SECTION 66. Section 451.616(a), Transportation Code, is
44-9 amended to read as follows:
44-10 (a) A unit of election that has withdrawn from an authority
44-11 [The comptroller] shall remit [withhold] to the authority [from the
44-12 amount of sales and use tax revenue refunded to a unit of election
44-13 that has withdrawn from an authority] one-half of the difference
44-14 between the cost of providing services to persons with disabilities
44-15 in the unit of election and the fares charged during the period in
44-16 which the sales and use tax was collected [and remit this amount to
44-17 the authority providing the services].
44-18 SECTION 67. Section 11.011(e), Texas Racing Act (Article
44-19 179e, Vernon's Texas Civil Statutes), is amended to read as
44-20 follows:
44-21 (e) The racetrack where the wager is made is responsible for
44-22 reporting and remitting the state's share of the pari-mutuel pool
44-23 [If intrastate wagering pools are combined between tracks, the
44-24 track where the race originates is responsible for the state's
44-25 share of the pari-mutuel pool regardless of whether a shortage or
44-26 error occurred at the originating track or receiving track].
45-1 SECTION 68. Section (1) of Article 6550c-1, Revised
45-2 Statutes, is amended to read as follows:
45-3 Sec. 1. DEFINITIONS. In this article:
45-4 (1) "Commission" means the Texas Transportation
45-5 Commission.
45-6 (2) "Commuter rail facility" means any property
45-7 necessary for the transportation of passengers and baggage between
45-8 points in a district. The term includes rolling stock,
45-9 locomotives, stations, parking areas, and rail lines.
45-10 (3) "Creating municipality" means a municipality
45-11 described by Section 2(a) of this article.
45-12 (4) "Department" means the Texas Department of
45-13 Transportation.
45-14 (5) "District" means an intermunicipal commuter rail
45-15 district created under this article.
45-16 (6) "District property" means all property owned or
45-17 leased under a long term lease by the district.
45-18 (7) "System" means all of the commuter rail and
45-19 intermodal facilities leased or owned by or operated on behalf of a
45-20 district created under this article.
45-21 SECTION 69. Section (9) of Article 6550c-1, Vernon's
45-22 Annotated Texas Statutes, is amended to read as follows:
45-23 Sec. 9. SALES AND USE TAXES. (a) There shall be imposed a
45-24 [A district shall collect or cause to be collected] sales and use
45-25 tax [taxes] on items sold on district property. The sales and use
45-26 tax shall be imposed [collected] at the rate of the highest
46-1 combination of [state and] local sales and use taxes imposed at the
46-2 time of its creation in any local governmental jurisdiction which
46-3 is a member of a district. [After deducting the state share of
46-4 sales and use taxes,] The [the] comptroller shall remit to a
46-5 district the local sales and use tax collected on the district's
46-6 property. All other local sales and use taxes which would
46-7 otherwise be imposed on district property are pre-empted by the
46-8 imposition of this tax.
46-9 (b) The comptroller shall administer, collect and enforce
46-10 any tax imposed under this chapter. The Municipal Sales and Use
46-11 Tax Act (Chapter 321, Tax Code) governs the computation,
46-12 administration, governance and use of the tax except as
46-13 inconsistent with this chapter.
46-14 (c) The district shall notify the comptroller in writing of
46-15 its creation and of its intent to impose the sales and use tax
46-16 imposed under this chapter. Such notification must be made by
46-17 United States registered or certified mail. The district shall
46-18 provide the comptroller with all information required to implement
46-19 the tax including an adequate map showing the property boundaries
46-20 of the district. Such information shall include, but is not
46-21 limited to, a certified copy of the district board's resolution
46-22 adopting the tax and certified copies of the resolutions of the
46-23 governing bodies of the municipalities creating the district and of
46-24 the county commissioner's courts in the counties in which these
46-25 municipalities are located. The comptroller shall notify the
46-26 district within thirty days of the receipt of such notice and map
47-1 whether the comptroller is prepared for the administration of the
47-2 tax. The district shall notify all affected local governmental
47-3 jurisdictions of its creation and provide them with an adequate map
47-4 showing the property boundaries of the district at the same time
47-5 the district notifies the comptroller of its creation and intent to
47-6 impose the tax.
47-7 (d) If the district acquires any additional territory, it
47-8 shall notify the comptroller and all affected local governmental
47-9 jurisdictions within thirty days of the acquisition. An adequate
47-10 map showing the new property boundaries of the district and the
47-11 date of the acquisition of the additional territory must be
47-12 included in the notification sent to all parties. The comptroller
47-13 shall notify the district within thirty days of the receipt of such
47-14 notice whether the comptroller is prepared for the administration
47-15 of the tax in the additional territory.
47-16 (e) A tax imposed under this chapter or the repeal of a tax
47-17 abolished under this chapter takes effect on the first day of the
47-18 first complete calendar quarter occurring after the expiration of
47-19 the first complete calendar quarter occurring after the date on
47-20 which the comptroller receives a notice of the action as required
47-21 by this section.
47-22 SECTION 70. The following sections of the Tax Code are
47-23 repealed:
47-24 (a) Sections 151.319(d) and (e);
47-25 (b) Sections 171.757(c) and (d); and
47-26 (c) Section 201.052(b).
48-1 SECTION 71. Each change in law made by the following
48-2 provisions by this Act is a clarification of existing law and does
48-3 not imply that existing law may be construed as inconsistent with
48-4 the law as amended by this Act:
48-5 (1) Section 111.0081(b), Tax Code;
48-6 (2) Section 151.007(a), Tax Code;
48-7 (3) Section 151.010, Tax Code;
48-8 (4) Section 151.057, Tax Code;
48-9 (5) Section 151.257(b), Tax Code;
48-10 (6) Section 308(a), Tax Code;
48-11 (7) Section 151.310, Tax Code;
48-12 (8) Section 151.313, Tax Code;
48-13 (9) Section 151.317(a), Tax Code;
48-14 (10) Sections 151.318(a) and (t), Tax Code;
48-15 (11) Section 151.3185(e), Tax Code;
48-16 (12) Section 319(b), Tax Code;
48-17 (13) Section 152.001, Tax Code;
48-18 (14) Section 152.047(a), Tax Code;
48-19 (15) Section 153.001(25), Tax Code;
48-20 (16) Section 153.018(i), Tax Code;
48-21 (17) Section 153.117(a), Tax Code;
48-22 (18) Section 153.205, Tax Code;
48-23 (19) Section 153.206(c), Tax Code;
48-24 (20) Section 153.219(j), Tax Code;
48-25 (21) Section 153.221(a) and (c), Tax Code;
48-26 (22) Section 154.101(a), (b), and (h), Tax Code;
49-1 (23) Section 155.041(a), (b), and (h), Tax Code;
49-2 (24) Section 171.1032(a), Tax Code;
49-3 (25) Section 171.1051(a), Tax Code;
49-4 (26) Section 171.1121(c), Tax Code;
49-5 (27) Section 171.260, Tax Code;
49-6 (28) Section 171.831, Tax Code; and
49-7 (29) Section 171.851, Tax Code.
49-8 SECTION 72. TRANSITIONAL PROVISIONS.
49-9 (a) The changes made to Section 326.023(b), Local Government
49-10 Code, made by Section 2 of the Act only apply to a petition filed
49-11 with a commissioners court on or after the effective date of that
49-12 Section. A petition filed before that effective date is governed
49-13 by the law in effect on the date the petition is filed, and the
49-14 prior law is continued in effect for this purpose.
49-15 (b) The changes to Section 326.029. Local Government Code,
49-16 made by Section 3 of this Act apply only to an order issued on or
49-17 after the effective date of those sections. An order issued before
49-18 that effective date is governed by the law in effect on the date
49-19 the order is issued and the prior law is continued in effect for
49-20 this purpose.
49-21 SECTION 73. The comptroller of public accounts may adopt
49-22 rules and take other actions before October 1, 1999, as the
49-23 comptroller deems necessary or advisable to prepare for the taking
49-24 effect of this Act.
49-25 SECTION 74. EFFECTIVE DATES.
49-26 (a) Sections 2 through 6, 8, 9, 11, 15, 27, 28, 62, 66, 68
50-1 and 69 of this Act take effect September 1, 2001.
50-2 (b) Sections 12, 13, 14, 16 through 26, 29 through 45, 63
50-3 through 65, 67, 70(a), and 70(c) of this Act take effect October 1,
50-4 2001.
50-5 (c) Sections 46 through 61, and 70(b) of this Act take
50-6 effect on January 1, 2002, and apply to a report originally due on
50-7 or after that date.