1-1 By: Armbrister S.B. No. 1125
1-2 (In the Senate - Filed March 6, 2001; March 7, 2001, read
1-3 first time and referred to Committee on Finance; April 2, 2001,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 12, Nays 0; April 2, 2001, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1125 By: Fraser
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to technical changes to taxes and fees administered by the
1-10 comptroller of public accounts.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (k), Section 43.0751, Local Government
1-13 Code, is amended to read as follows:
1-14 (k) A municipality that has annexed all or part of a
1-15 district for limited purposes under this section may impose a
1-16 [retail] sales and use tax within the boundaries of the part of the
1-17 district that is annexed for limited purposes. Except to the
1-18 extent it is inconsistent with this section, Chapter 321, Tax Code,
1-19 governs the imposition, computation, administration, governance,
1-20 and abolition of the sales and use tax.
1-21 SECTION 2. Subsection (b), Section 326.023, Local Government
1-22 Code, is amended to read as follows:
1-23 (b) The petition must:
1-24 (1) include a name for the proposed district that
1-25 describes the location of the district followed by the words
1-26 "Library District";
1-27 (2) describe the boundaries of the proposed district
1-28 by:
1-29 (A) metes and bounds;
1-30 (B) lot and block number, if there is a recorded
1-31 map or plat and survey of the area; or
1-32 (C) other sufficient legal description;
1-33 (3) include the names of five persons who are willing
1-34 and qualified to serve as the initial board of trustees of the
1-35 district if elected at the election to create the district; [and]
1-36 (4) include the rate of the sales and use tax that
1-37 would be imposed by the board of the proposed district on approval
1-38 of the district; and
1-39 (5) include a list of each known business identified
1-40 in the proposed boundaries of the district.
1-41 SECTION 3. Section 326.029, Local Government Code, is
1-42 amended by amending Subsection (c) and adding Subsection (d) to
1-43 read as follows:
1-44 (c) The order canvassing the results of the election must:
1-45 (1) contain a description of the district's boundaries
1-46 and a map of the district; [and]
1-47 (2) state the date of the election; and
1-48 (3) state the total number of votes cast for and
1-49 against the ballot proposition [be filed in the deed records of the
1-50 county in which the district is located].
1-51 (d) The order issued by a commissioners court canvassing the
1-52 results of the election must be:
1-53 (1) filed in the deed records of the county in which
1-54 the district is located; and
1-55 (2) mailed or delivered to the comptroller not later
1-56 than the 30th day after the date the order is issued.
1-57 SECTION 4. Subchapter F, Chapter 363, Local Government Code,
1-58 is amended by adding Section 363.262 to read as follows:
1-59 Sec. 363.262. EFFECTIVE DATE OF TAX CHANGE. (a) If less
1-60 than a majority of the votes cast in a continuation referendum are
1-61 for the continuation of the district or if a majority of the votes
1-62 cast in a dissolution referendum are for dissolution of the
1-63 district, the board shall notify the comptroller in writing of the
1-64 results of the referendum not later than the 10th day after the
2-1 date the referendum returns are canvassed.
2-2 (b) If the district is to be dissolved as a result of the
2-3 referendum, the abolition of the local crime control sales and use
2-4 tax takes effect on the first day of the first calendar quarter
2-5 that occurs after the expiration of the first complete calendar
2-6 quarter that occurs after the comptroller receives a notice of the
2-7 results of the continuation or dissolution referendum.
2-8 (c) If the comptroller determines that an effective date
2-9 provided by Subsection (b) will occur before the comptroller can
2-10 reasonably take the action required to implement abolition of the
2-11 tax, the comptroller may extend the effective date until the final
2-12 day of the succeeding calendar quarter.
2-13 SECTION 5. Section 378.004, Local Government Code, as added
2-14 by Chapter 305, Acts of the 76th Legislature, Regular Session,
2-15 1999, is amended to read as follows:
2-16 Sec. 378.004. MUNICIPAL POWERS. In addition to other powers
2-17 that a municipality may exercise, a municipality may:
2-18 (1) waive or adopt fees related to the construction of
2-19 buildings in the zone, including fees related to the inspection of
2-20 buildings and impact fees;
2-21 (2) enter into agreements, for a period of not more
2-22 than 10 years, for the purpose of benefiting the zone, for [sales
2-23 tax] refunds [or abatements] of municipal sales tax on sales made
2-24 in the zone;
2-25 (3) enter into agreements abating municipal property
2-26 taxes on property in the zone subject to the duration limits of
2-27 Section 312.204, Tax Code; and
2-28 (4) set baseline performance standards, such as the
2-29 Energy Star Program as developed by the Department of Energy, to
2-30 encourage the use of alternative building materials that address
2-31 concerns relating to the environment or to the building costs,
2-32 maintenance, or energy consumption.
2-33 SECTION 6. Section 383.104, Local Government Code, is
2-34 amended by adding Subsection (c) to read as follows:
2-35 (c) The district's sales and use tax is automatically
2-36 discontinued by operation of law if no tax revenue is collected
2-37 within the district before the first anniversary of the date the
2-38 tax took effect. The comptroller shall notify the board and the
2-39 commissioners court of the county in which the district is located
2-40 of the discontinuance of the tax. The district may authorize a new
2-41 sales and use tax by following the procedures provided by this
2-42 subchapter for imposition of the tax.
2-43 SECTION 7. Subsection (a), Section 25.00212, Government
2-44 Code, is amended to read as follows:
2-45 (a) At the end of each state fiscal year the comptroller
2-46 shall determine the amounts deposited in the judicial fund under
2-47 Section 51.704 [51.703] and the amounts paid to the counties under
2-48 Section 25.00211. If the total amount paid under Section 51.704 by
2-49 all counties exceeds the total amount paid to counties under
2-50 Section 25.00211, the state shall remit the excess to the counties
2-51 proportionately based on the percentage of the total paid by each
2-52 county.
2-53 SECTION 8. Subsection (b), Section 111.0081, Tax Code, is
2-54 amended to read as follows:
2-55 (b) This section does not apply to a determination under
2-56 Section 111.022 [151.506 of this code].
2-57 SECTION 9. Subsection (e), Section 111.301, Tax Code, is
2-58 amended to read as follows:
2-59 (e) Application for the refund is to the comptroller. The
2-60 application must:
2-61 (1) be made on the form prescribed by the comptroller;
2-62 (2) have attached a tax receipt from the assessor and
2-63 collector of taxes for the school district showing full payment of
2-64 school district ad valorem taxes on the property for the tax year
2-65 for which the refund is sought; and
2-66 (3) include sufficient information for the comptroller
2-67 to determine the portion of the ad valorem taxes paid to a school
2-68 district by the person for the applicable tax year on the property
2-69 that the person would not have been required to pay if the school
3-1 district had entered into a tax abatement agreement concerning the
3-2 property that included the same terms, including terms governing
3-3 the portion of the property that is to be exempt from taxation
3-4 under the agreement, as specified by the [applicable] municipal or
3-5 county tax abatement agreement on which the refund amount is to be
3-6 based.
3-7 SECTION 10. Section 111.302, Tax Code, is amended by
3-8 amending Subsections (b) and (c) and adding Subsection (d) to read
3-9 as follows:
3-10 (b) Applications for refund must be filed before August 1 of
3-11 the year following the tax year for which the person applying has
3-12 paid ad valorem taxes described by Section 111.301(a). Within 90
3-13 [60] days thereafter, the comptroller shall compute the total
3-14 amount eligible for refund.
3-15 (c) If the total amount of eligible refunds claimed by all
3-16 persons, as determined under Subsection (b), is less than $10
3-17 million, the amount of a tax refund is equal to the ad valorem
3-18 taxes paid to a school district by the person for the applicable
3-19 tax year on the property that the person would not have been
3-20 required to pay if the school district had entered into a tax
3-21 abatement agreement covering the property that included the same
3-22 terms, including terms governing the portion of the property that
3-23 is to be exempt from taxation under the agreement, as specified by
3-24 the [applicable] municipal or county tax abatement agreement on
3-25 which the refund amount is to be based. If the total amount of
3-26 eligible refunds claimed by all persons, as determined under
3-27 Subsection (b), is greater than $10 million, the comptroller shall
3-28 reduce the amount of each refund as necessary to allow all
3-29 claimants to share proportionally the $10 million available. The
3-30 amount by which a refund is reduced under this subsection may not
3-31 be included in a claim for a refund in a subsequent year.
3-32 (d) If an eligible person has entered into tax abatement
3-33 agreements with the municipality and the county, and the agreements
3-34 provided to the comptroller show that the agreements exempt
3-35 different portions of property value, the refund amount shall be
3-36 computed based on the greater of the portions exempted.
3-37 SECTION 11. Section 111.304, Tax Code, is amended to read as
3-38 follows:
3-39 Sec. 111.304. EVALUATION; ANNUAL REPORT. Not later than
3-40 [December 1, 1999, and] December 1 of each [subsequent] year, the
3-41 comptroller shall submit an annual report to the legislature. The
3-42 report:
3-43 (1) must document the applications for refunds filed
3-44 with the comptroller under this subchapter;
3-45 (2) must document the refunds paid by the comptroller
3-46 under this chapter; and
3-47 (3) [must contain relevant information obtained from
3-48 the Texas Department of Commerce, including information to
3-49 demonstrate the relationship between tax refunds under this
3-50 subchapter and the economy; and]
3-51 [(4)] may include any other relevant information that
3-52 the comptroller determines is applicable to this subchapter or to
3-53 Chapter 312.
3-54 SECTION 12. Subsection (a), Section 151.007, Tax Code, is
3-55 amended to read as follows:
3-56 (a) Except as provided by Subsections (c) and (d) [of this
3-57 section], "sales price" or "receipts" means the total amount for
3-58 which a taxable item is sold, leased, or rented, valued in money,
3-59 without a deduction for the cost of:
3-60 (1) the taxable item sold, leased, or rented;
3-61 (2) the materials used, labor or service employed,
3-62 interest, losses, or other expenses;
3-63 (3) the transportation or installation of tangible
3-64 personal property; or
3-65 (4) transportation incident to the performance of a
3-66 taxable service.
3-67 SECTION 13. Section 151.010, Tax Code, is amended to read as
3-68 follows:
3-69 Sec. 151.010. "TAXABLE ITEM." "Taxable item" means tangible
4-1 personal property and taxable services. Except as otherwise
4-2 provided by this chapter, the sale or use of a taxable item in
4-3 electronic form instead of on physical media does not alter the
4-4 item's tax status.
4-5 SECTION 14. Section 151.057, Tax Code, is amended to read as
4-6 follows:
4-7 Sec. 151.057. SERVICES BY EMPLOYEES. The following services
4-8 are not taxable under this chapter:
4-9 (1) a service performed by an employee for his
4-10 employer in the regular course of business, within the scope of the
4-11 employee's duties, and for which the employee is paid his regular
4-12 wages or salary;
4-13 (2) a service performed by an employee of a temporary
4-14 employment service as defined by Section 93.001, Labor Code, [a
4-15 temporary help service] for an employer to supplement the
4-16 employer's existing work force on a temporary basis, when the
4-17 service is normally performed by the employer's own employees, the
4-18 employer provides all supplies and equipment necessary, and the
4-19 help is under the direct or general supervision of the employer to
4-20 whom the help is furnished; or
4-21 (3) a service performed by assigned employees of a
4-22 staff leasing company, either licensed under Chapter 91, Labor
4-23 Code, or exempt from the licensing requirements of that chapter,
4-24 for a client company under a written contract that provides for
4-25 shared employment responsibilities between the staff leasing
4-26 company and the client company for the assigned employees, most of
4-27 whom must have been previously employed by the client company. The
4-28 comptroller shall prescribe by rule the minimum percentage of
4-29 assigned employees that must have been previously employed by the
4-30 client company, the minimum time period the assigned employees must
4-31 have been employed by the client company prior to the commencement
4-32 of its contract, and such other criteria as the comptroller may
4-33 deem necessary to properly implement this section.
4-34 SECTION 15. Subsection (a), Section 151.155, Tax Code, is
4-35 amended to read as follows:
4-36 (a) Except as provided by Section 151.3181 for property used
4-37 in manufacturing, if [If] a purchaser certifies in writing to a
4-38 seller that a taxable item sold, leased, or rented to the purchaser
4-39 will be used in a manner or for a purpose that qualifies the sale
4-40 of the item for an exemption from the taxes imposed by this
4-41 chapter, and if the purchaser then uses the item in some other
4-42 manner or for some other purpose, the purchaser is liable for the
4-43 payment of the sales tax on the value of the taxable item for any
4-44 period during which the item is used in the divergent manner or for
4-45 the divergent purpose.
4-46 SECTION 16. Subsection (b), Section 151.257, Tax Code, is
4-47 amended to read as follows:
4-48 (b) If the security filed by the person is a surety bond,
4-49 the comptroller shall send a copy of the determination to each
4-50 surety on the bond and shall demand payment from both the person
4-51 filing the bond and each surety. A surety's obligation under the
4-52 bond is not affected by whether the surety has a record of the
4-53 receipt of a copy of the comptroller's determination notice or
4-54 payment demand.
4-55 SECTION 17. Subchapter H, Chapter 151, Tax Code, is amended
4-56 by adding Section 151.3021 to read as follows:
4-57 Sec. 151.3021. PACKAGING SUPPLIES AND WRAPPING. (a) In
4-58 this section:
4-59 (1) "Laundry or dry cleaner" does not include
4-60 coin-operated or other self-service garment cleaning facilities.
4-61 (2) "Wrapping, packing, and packaging supplies" means
4-62 hangers, safety pins, pins, inventory tags, staples, boxes, paper
4-63 wrappers, and plastic bags.
4-64 (b) Internal and external wrapping, packing, and packaging
4-65 supplies are exempted from the taxes imposed by this chapter if
4-66 sold to a person who is a laundry or dry cleaner for use in
4-67 wrapping, packing, or packaging an item that has been pressed and
4-68 dry cleaned or laundered by the person operating as a laundry or
4-69 dry cleaner in the regular course of business.
5-1 SECTION 18. Subsection (a), Section 151.308, Tax Code, is
5-2 amended to read as follows:
5-3 (a) The following are exempted from the taxes imposed by
5-4 this chapter:
5-5 (1) oil as taxed by Chapter 202;
5-6 (2) sulphur as taxed by Chapter 203;
5-7 (3) motor fuels and special fuels as defined, taxed,
5-8 or exempted by Chapter 153;
5-9 (4) cement as taxed by Chapter 181;
5-10 (5) motor vehicles, trailers, and semitrailers as
5-11 defined, taxed, or exempted by Chapter 152 [or 157], other than a
5-12 mobile office as defined by Section 152.001(16);
5-13 (6) mixed beverages, ice, or nonalcoholic beverages
5-14 and the preparation or service of these items if the receipts are
5-15 taxable by Chapter 183 [202, Alcoholic Beverage Code];
5-16 (7) alcoholic beverages when sold to the holder of a
5-17 private club registration permit or to the agent or employee of the
5-18 holder of a private club registration permit if the holder or agent
5-19 or employee is acting as the agent of the members of the club and
5-20 if the beverages are to be served on the premises of the club;
5-21 (8) oil well service as taxed by Subchapter E, Chapter
5-22 191; and
5-23 (9) insurance premiums subject to gross premiums
5-24 taxes.
5-25 SECTION 19. Section 151.310, Tax Code, is amended by
5-26 amending Subsection (d) and adding Subsection (f) to read as
5-27 follows:
5-28 (d) If two or more organizations jointly hold a tax-free
5-29 sale or auction, each [neither] organization may hold one
5-30 additional [another] tax-free sale or auction during the calendar
5-31 year in which the joint sale or auction is held. The employment of
5-32 and payment of a reasonable fee to an auctioneer to conduct a
5-33 tax-free auction does not disqualify an otherwise qualified
5-34 organization from receiving the exemption provided by Subsection
5-35 (c) [of this section].
5-36 (f) A qualifying joint venture or partnership is entitled to
5-37 an exemption from the tax imposed by this chapter on its purchases.
5-38 To qualify, the joint venture or partnership must be an entity that
5-39 is formed between a for-profit entity and a nonprofit hospital or
5-40 hospital system that qualifies for an exemption under Subsection
5-41 (e) and must provide community benefits, including charity care and
5-42 government-sponsored indigent health care, in the manner prescribed
5-43 by Subchapter D, Chapter 311, Health and Safety Code. The
5-44 exemption is limited to the percentage that the nonprofit hospital
5-45 or hospital system owns in the joint venture or partnership.
5-46 SECTION 20. Section 151.313, Tax Code, as amended by
5-47 Chapters 394 and 683, Acts of the 76th Legislature, Regular
5-48 Session, 1999, is reenacted and amended to read as follows:
5-49 Sec. 151.313. HEALTH CARE SUPPLIES. (a) The following
5-50 items are exempted from the taxes imposed by this chapter:
5-51 (1) a drug or medicine, other than insulin, if
5-52 prescribed or dispensed for a human or animal by a licensed
5-53 practitioner of the healing arts;
5-54 (2) insulin;
5-55 (3) subject to Subsection (c), a drug or medicine,
5-56 without regard to whether it is prescribed or dispensed by a
5-57 licensed practitioner of the healing arts[, that is labeled with a
5-58 national drug code issued by the federal Food and Drug
5-59 Administration];
5-60 (4) a hypodermic syringe or needle;
5-61 (5) a brace; hearing aid or audio loop; orthopedic,
5-62 dental, or prosthetic device; ileostomy, colostomy, or ileal
5-63 bladder appliance; or supplies or replacement parts for the listed
5-64 items;
5-65 (6) a therapeutic appliance, device, and any related
5-66 supplies specifically designed for those products, if dispensed or
5-67 prescribed by a licensed practitioner of the healing arts, when
5-68 those items are purchased and used by an individual for whom the
5-69 items listed in this subdivision were dispensed or prescribed;
6-1 (7) corrective lens and necessary and related
6-2 supplies, if dispensed or prescribed by an ophthalmologist or
6-3 optometrist;
6-4 (8) specialized printing or signalling equipment used
6-5 by the deaf for the purpose of enabling the deaf to communicate
6-6 through the use of an ordinary telephone and all materials, paper,
6-7 and printing ribbons used in that equipment;
6-8 (9) a braille wristwatch, braille writer, braille
6-9 paper and braille electronic equipment that connects to computer
6-10 equipment, and the necessary adaptive devices and adaptive computer
6-11 software;
6-12 (10) each of the following items if purchased for use
6-13 by the blind to enable them to function more independently: a
6-14 slate and stylus, print enlarger, light probe, magnifier, white
6-15 cane, talking clock, large print terminal, talking terminal, or
6-16 harness for guide dog;
6-17 (11) hospital beds;
6-18 (12) blood glucose monitoring test strips; [and]
6-19 (13) an adjustable eating utensil used to facilitate
6-20 independent eating if purchased for use by a person, including a
6-21 person who is elderly or physically disabled, has had a stroke, or
6-22 is a burn victim, who does not have full use or control of the
6-23 person's hands or arms; and
6-24 (14) subject to Subsection (d), a dietary supplement.
6-25 (b) Each of the following items is exempted from the tax
6-26 imposed by this chapter if the item is used by a person who is deaf
6-27 to enable the person to function more independently:
6-28 (1) a light signal and device to adapt items such as
6-29 telecommunication devices for the deaf (TDDs), telephones,
6-30 doorbells, and smoke alarms; and
6-31 (2) adaptive devices or adaptive software for
6-32 computers used by persons who are deaf.
6-33 (c) A product is a drug or medicine for purposes of this
6-34 section if:
6-35 (1) the product:
6-36 (A) is intended for use in the diagnosis, cure,
6-37 mitigation, treatment, or prevention of disease, illness, injury,
6-38 or pain;
6-39 (B) is applied to the human body or is a product
6-40 that a human ingests or inhales;
6-41 (C) is not an appliance or device; and
6-42 (D) is not food; or
6-43 (2) the product is labeled or required to be labeled
6-44 with a "Drug Facts" panel in accordance with regulations of the
6-45 federal Food and Drug Administration.
6-46 (d) A product is a dietary supplement for purposes of this
6-47 section if:
6-48 (1) the product:
6-49 (A) contains one or more vitamins, minerals,
6-50 herbs, amino acids, or substances that are intended to increase
6-51 caloric intake;
6-52 (B) is not represented as food or the sole item
6-53 of a meal or the diet; and
6-54 (C) is labeled "dietary supplement" or
6-55 "supplement"; or
6-56 (2) the product is labeled or required to be labeled
6-57 with a "Supplement Facts" panel in accordance with regulations of
6-58 the federal Food and Drug Administration.
6-59 SECTION 21. Subsection (a), Section 151.317, Tax Code, is
6-60 amended to read as follows:
6-61 (a) Subject to Subsection (d), gas and electricity are
6-62 exempted from the taxes imposed by this chapter when sold for:
6-63 (1) residential use;
6-64 (2) use in powering equipment exempt under Section
6-65 151.318 or 151.3185 by a person processing tangible personal
6-66 property for sale as tangible personal property, other than
6-67 preparation or storage of food for immediate consumption;
6-68 (3) use in lighting, cooling, and heating in the
6-69 manufacturing area during the actual manufacturing or processing of
7-1 tangible personal property for sale as tangible personal property,
7-2 other than preparation or storage of food for immediate
7-3 consumption;
7-4 (4) use directly in exploring for, producing, or
7-5 transporting, a material extracted from the earth;
7-6 (5) use in agriculture, including dairy or poultry
7-7 operations and pumping for farm or ranch irrigation;
7-8 (6) use directly in electrical processes, such as
7-9 electroplating, electrolysis, and cathodic protection;
7-10 (7) use directly in the off-wing processing, overhaul,
7-11 or repair of a jet turbine engine or its parts for a certificated
7-12 or licensed carrier of persons or property;
7-13 (8) use directly in providing, under contracts with or
7-14 on behalf of the United States government or foreign governments,
7-15 defense or national security-related electronics, classified
7-16 intelligence data processing and handling systems, or
7-17 defense-related platform modifications or upgrades; [or]
7-18 (9) a direct or indirect use, consumption, or loss of
7-19 electricity by an electric utility engaged in the purchase of
7-20 electricity for resale; or
7-21 (10) use in timber operations, including pumping for
7-22 irrigation of timberland.
7-23 SECTION 22. Subsections (a) and (t), Section 151.318, Tax
7-24 Code, are amended to read as follows:
7-25 (a) The following items are exempted from the taxes imposed
7-26 by this chapter if sold, leased, or rented to, or stored, used, or
7-27 consumed by a manufacturer:
7-28 (1) tangible personal property that will become an
7-29 ingredient or component part of tangible personal property
7-30 manufactured, processed, or fabricated for ultimate sale;
7-31 (2) tangible personal property directly used or
7-32 consumed in or during the actual manufacturing, processing, or
7-33 fabrication of tangible personal property for ultimate sale if the
7-34 use or consumption of the property is necessary or essential to the
7-35 manufacturing, processing, or fabrication operation and directly
7-36 makes or causes a chemical or physical change to:
7-37 (A) the product being manufactured, processed,
7-38 or fabricated for ultimate sale; or
7-39 (B) any intermediate or preliminary product that
7-40 will become an ingredient or component part of the product being
7-41 manufactured, processed, or fabricated for ultimate sale;
7-42 (3) services performed directly on the product being
7-43 manufactured prior to its distribution for sale and for the purpose
7-44 of making the product more marketable;
7-45 (4) actuators, steam production equipment and its
7-46 fuel, in-process flow through tanks, cooling towers, generators,
7-47 heat exchangers, transformers and the switches, breakers, capacitor
7-48 banks, regulators, relays, reclosers, fuses, interruptors,
7-49 reactors, arrestors, resistors, insulators, instrument
7-50 transformers, and telemetry units that are related to the
7-51 transformers, electronic control room equipment, computerized
7-52 control units, pumps, compressors, and hydraulic units, that are
7-53 used to power, supply, support, or control equipment that qualifies
7-54 for exemption under Subdivision (2) or (5) or to generate
7-55 electricity, chilled water, or steam for ultimate sale;
7-56 transformers located at an electric generating facility that
7-57 increase the voltage of electricity generated for ultimate sale,
7-58 the electrical cable that carries the electricity from the electric
7-59 generating equipment to the step-up transformers, and the switches,
7-60 breakers, capacitor banks, regulators, relays, reclosers, fuses,
7-61 interruptors, reactors, arrestors, resistors, insulators,
7-62 instrument transformers, and telemetry units that are related to
7-63 the step-up transformers; and transformers that decrease the
7-64 voltage of electricity generated for ultimate sale and the
7-65 switches, breakers, capacitor banks, regulators, relays, reclosers,
7-66 fuses, interruptors, reactors, arrestors, resistors, insulators,
7-67 instrument transformers, and telemetry units that are related to
7-68 the step-down transformers;
7-69 (5) tangible personal property used or consumed in the
8-1 actual manufacturing, processing, or fabrication of tangible
8-2 personal property for ultimate sale if the use or consumption of
8-3 the property is necessary and essential to a pollution control
8-4 process;
8-5 (6) lubricants, chemicals, chemical compounds, gases,
8-6 or liquids that are used or consumed during the actual
8-7 manufacturing, processing, or fabrication of tangible personal
8-8 property for ultimate sale if their use or consumption is necessary
8-9 and essential to prevent the decline, failure, lapse, or
8-10 deterioration of equipment exempted by this section;
8-11 (7) gases used on the premises of a manufacturing
8-12 plant to prevent contamination of raw material or product, or to
8-13 prevent a fire, explosion, or other hazardous or environmentally
8-14 damaging situation at any stage in the manufacturing process or in
8-15 loading or storage of the product or raw material on premises;
8-16 (8) tangible personal property used or consumed during
8-17 the actual manufacturing, processing, or fabrication of tangible
8-18 personal property for ultimate sale if the use or consumption of
8-19 the property is necessary and essential to a quality control
8-20 process that tests tangible personal property that is being
8-21 manufactured, processed, or fabricated for ultimate sale;
8-22 (9) safety apparel or work clothing that is used
8-23 during the actual manufacturing, processing, or fabrication of
8-24 tangible personal property for ultimate sale if:
8-25 (A) the manufacturing process would not be
8-26 possible without the use of the apparel or clothing; and
8-27 (B) the apparel or clothing is not resold to the
8-28 employee;
8-29 (10) tangible personal property used or consumed in
8-30 the actual manufacturing, processing, or fabrication of tangible
8-31 personal property for ultimate sale if the use or consumption of
8-32 the property is necessary and essential to comply with federal,
8-33 state, or local laws or rules that establish requirements related
8-34 to public health; and
8-35 (11) tangible personal property specifically installed
8-36 to:
8-37 (A) reduce water use and wastewater flow volumes
8-38 from the manufacturing, processing, fabrication, or repair
8-39 operation;
8-40 (B) reuse and recycle wastewater streams
8-41 generated within the manufacturing, processing, fabrication, or
8-42 repair operation; or
8-43 (C) treat wastewater from another industrial or
8-44 municipal source for the purpose of replacing existing freshwater
8-45 sources in the manufacturing, processing, fabrication, or repair
8-46 operation.
8-47 (t) In addition to the other items exempted under this
8-48 section, pre-press machinery, equipment, and supplies, including
8-49 computers, cameras, photographic props, film, film developing
8-50 chemicals, veloxes, plate-making machinery, plate metal, litho
8-51 negatives, color separation negatives, proofs of color negatives,
8-52 production art work, and typesetting or composition proofs, that
8-53 are necessary and essential to and used in connection with the
8-54 printing process are exempted from the tax imposed by this chapter
8-55 if they are purchased by a person engaged in:
8-56 (1) printing or imprinting tangible personal property
8-57 for sale; or
8-58 (2) producing a publication for the dissemination of
8-59 news of a general character and of a general interest that is
8-60 printed on newsprint and distributed to the general public free of
8-61 charge at a daily, weekly, or other short interval.
8-62 SECTION 23. Subchapter H, Chapter 151, Tax Code, is amended
8-63 by adding Section 151.3181 to read as follows:
8-64 Sec. 151.3181. DIVERGENT USE OF PROPERTY USED IN
8-65 MANUFACTURING. (a) In this section:
8-66 (1) "Divergent use" means the use of property in a
8-67 manner or for a purpose other than the manner or purpose that
8-68 qualified the sale, lease, rental, use, or other consumption of the
8-69 property for exemption under Section 151.318.
9-1 (2) "Property" means tangible personal property
9-2 regardless of whether the tangible personal property is permanently
9-3 affixed to or incorporated into realty after its purchase.
9-4 (b) Divergent use of property exempted under Section 151.318
9-5 will not result in sales and use tax being due on the property if
9-6 the divergent use occurs after the fourth anniversary of the date
9-7 the property is purchased.
9-8 (c) Except as provided by Subsection (d), divergent use of
9-9 property exempted under Section 151.318 that occurs during any
9-10 month before the fourth anniversary of the date the property is
9-11 purchased results in sales and use tax being due for that month.
9-12 The amount of the sales and use tax due for a month is equal to
9-13 1/48 of the purchase price of the property multiplied by the
9-14 percentage of divergent use during that month multiplied by the
9-15 sales and use tax rate applicable at the time of purchase.
9-16 (d) Divergent use of property exempted under Section 151.318
9-17 that occurs during a month before the fourth anniversary of the
9-18 date the property is purchased does not result in sales and use tax
9-19 being due for that month if the percentage of divergent use during
9-20 that month does not exceed five percent of the total use of the
9-21 property that month.
9-22 (e) The amount of divergent use during a month is:
9-23 (1) the total time the property operates for a
9-24 divergent use during a month, measured in hours; or
9-25 (2) the total output of the property during divergent
9-26 use during a month, measured in a manner applicable to that
9-27 property.
9-28 (f) The total use of property is:
9-29 (1) the total time the property operates during a
9-30 month, measured in hours; or
9-31 (2) the total output of the property during a month,
9-32 measured in a manner applicable to that property.
9-33 (g) The percentage of divergent use for a month is
9-34 determined by:
9-35 (1) dividing the amount of divergent use determined
9-36 under Subsection (e)(1) by the amount of total use of the property
9-37 determined under Subsection (f)(1); or
9-38 (2) dividing the amount of divergent use determined
9-39 under Subsection (e)(2) by the amount of total use of the property
9-40 determined under Subsection (f)(2).
9-41 SECTION 24. Section 151.3185, Tax Code, is amended by adding
9-42 Subsections (e) and (f) to read as follows:
9-43 (e) The sale of a motion picture, video, or audio master by
9-44 the producer of the master is exempt from the taxes imposed by this
9-45 chapter.
9-46 (f) Tangible personal property that is sold to an entity to
9-47 which 47 C.F.R. Section 73.624(b) applies is exempt from the taxes
9-48 imposed by this chapter if the property is necessary for the entity
9-49 to comply with 47 C.F.R. Section 73.682(d).
9-50 SECTION 25. Subsection (b), Section 151.319, Tax Code, is
9-51 amended to read as follows:
9-52 (b) A transaction involving a sale of a newspaper that has
9-53 been produced, fabricated, or printed to the special order of a
9-54 customer is exempted from the taxes imposed by this chapter if:
9-55 (1) the customer is responsible for gathering
9-56 substantially all of the information contained in the newspaper and
9-57 for formulating the design, layout, and format of the newspaper;
9-58 and
9-59 (2) the customer would be entitled to the exemption
9-60 provided by Section 151.318(t) [Subsection (d) of this section] if
9-61 the customer had a printing facility capable of processing and
9-62 printing the newspaper and printed and processed the newspaper.
9-63 SECTION 26. Section 152.002, Tax Code, is amended by adding
9-64 Subsection (e) to read as follows:
9-65 (e) A person who is a motor vehicle owner, is in the
9-66 business of renting motor vehicles, and holds a permit may deduct
9-67 the fair market value of a replaced motor vehicle that is titled to
9-68 another person if:
9-69 (1) either person:
10-1 (A) holds a beneficial ownership interest in the
10-2 other person of at least 80 percent; or
10-3 (B) acquires all of its vehicles exclusively
10-4 from franchised dealers whose franchisor shares common ownership
10-5 with the other person; and
10-6 (2) the replaced motor vehicle is offered for sale.
10-7 SECTION 27. Section 152.041, Tax Code, is amended by
10-8 amending Subsections (c) and (d) and adding Subsection (f) to read
10-9 as follows:
10-10 (c) Except as provided by Subsection (f) and Section
10-11 152.047, the tax imposed by Section 152.021 [of this code] is due
10-12 on the 20th working day after the date [day that] the motor vehicle
10-13 is delivered to the purchaser.
10-14 (d) Except as provided by Subsection (f), the [The] tax
10-15 imposed by Section 152.022 [of this code] is due on the 20th
10-16 working day after the date [day that] the motor vehicle is brought
10-17 into this state.
10-18 (f) The tax imposed by Section 152.021 or 152.022 on a motor
10-19 vehicle designed for commercial use is due on the 20th working day
10-20 after the date the motor vehicle is equipped with a body or other
10-21 equipment that enables the motor vehicle to be eligible to be
10-22 registered under the Transportation Code.
10-23 SECTION 28. Subsection (a), Section 152.047, Tax Code, is
10-24 amended to read as follows:
10-25 (a) Except as inconsistent with this chapter and rules
10-26 adopted under this chapter, the seller of a motor vehicle shall
10-27 report and pay the tax imposed on a seller-financed sale to the
10-28 comptroller on the seller's receipts from seller-financed sales in
10-29 the same manner as the sales tax is reported and paid by a retailer
10-30 under Sections 151.401, 151.402, 151.405, 151.406, 151.409,
10-31 151.423, 151.424, and 151.425 [Chapter 151].
10-32 SECTION 29. Section 152.091, Tax Code, is amended by adding
10-33 Subsection (d) to read as follows:
10-34 (d) For purposes of this section, a machine is used
10-35 "primarily for timber operations" if the machine is a
10-36 self-propelled motor vehicle that is specially adapted to perform a
10-37 specialized function in the production of timber, including land
10-38 preparation, planting, maintenance, and gathering of trees commonly
10-39 grown for commercial timber. The term does not include a
10-40 self-propelled motor vehicle used to transport timber or timber
10-41 products.
10-42 SECTION 30. Subdivision (25), Section 153.001, Tax Code, is
10-43 amended to read as follows:
10-44 (25) "Supplier" means a person who:
10-45 (A) refines, distills, manufactures, produces,
10-46 or blends for sale or distribution diesel fuel in this state;
10-47 (B) imports or exports diesel fuel other than in
10-48 the fuel supply tanks of motor vehicles;
10-49 (C) sells or delivers diesel fuel in bulk
10-50 quantities to dealers, dyed diesel fuel bonded users, agricultural
10-51 bonded users, bulk users, aviation fuel dealers, or other
10-52 suppliers; or
10-53 (D) is engaged in the business of selling or
10-54 delivering diesel fuel in bulk quantities to consumers for
10-55 nonhighway uses.
10-56 SECTION 31. Subsection (i), Section 153.018, Tax Code, is
10-57 amended to read as follows:
10-58 (i) Each terminal or bulk plant shall post a notice in a
10-59 conspicuous location proximate to the point of receipt of shipping
10-60 papers that describes the duties of importers and exporters under
10-61 this section. The comptroller may prescribe the language, type,
10-62 style, and format of the notice.
10-63 SECTION 32. Subsection (c), Section 153.115, Tax Code, is
10-64 amended to read as follows:
10-65 (c) A permitted interstate trucker is entitled to deduct
10-66 one-half of one percent of the taxable gallons of gasoline on
10-67 timely payment of the taxes to the state for the expense of
10-68 recordkeeping, reporting, and remitting the tax.
10-69 SECTION 33. Subsection (a), Section 153.117, Tax Code, is
11-1 amended to read as follows:
11-2 (a) A distributor shall keep:
11-3 (1) a record showing the number of gallons of:
11-4 (A) all gasoline inventories on hand at the
11-5 first of each month;
11-6 (B) all gasoline refined, compounded, or
11-7 blended;
11-8 (C) all gasoline purchased or received, showing
11-9 the name of the seller and date of each purchase or receipt;
11-10 (D) all gasoline sold, distributed, or used,
11-11 showing the name of the purchaser and the date of the sale or use;
11-12 and
11-13 (E) all gasoline lost by fire, theft, or
11-14 accident; and
11-15 (2) an itemized statement showing by load the number
11-16 of gallons of all gasoline:
11-17 (A) received during the preceding calendar month
11-18 for export and the location of the loading;
11-19 (B) exported from this state by destination
11-20 state or country; and
11-21 (C) imported during the preceding calendar month
11-22 by [destination] state or country of origin.
11-23 SECTION 34. Subsection (a), Section 153.119, Tax Code, is
11-24 amended to read as follows:
11-25 (a) A person who exports, sells to the federal government,
11-26 to a public school district in this state, or to a commercial
11-27 transportation company for exclusive use in providing public school
11-28 transportation services to a school district under Section 34.008,
11-29 Education Code, without having added the amount of the tax imposed
11-30 by this chapter to his selling price, loses by fire, theft, or
11-31 accident, or uses gasoline for the purpose of operating or
11-32 propelling a motorboat, tractor used for agricultural purposes, or
11-33 stationary engine, or for another purpose except in a vehicle
11-34 operated or intended to be operated on the public highways of this
11-35 state, and who has paid the tax imposed on gasoline by this chapter
11-36 either directly or indirectly is, when the person has complied with
11-37 the invoice and filing provisions of this section and the rules of
11-38 the comptroller, entitled to reimbursement of the tax paid by him,
11-39 less [a filing fee and] any amount allowed distributors under
11-40 Section 153.105(e) [of this code]. A public school district that
11-41 has paid the tax imposed under this chapter on gasoline used by the
11-42 district or a commercial transportation company that has paid the
11-43 tax imposed under this chapter on gasoline used by the company
11-44 exclusively to provide public school transportation services to a
11-45 school district under Section 34.008, Education Code, is entitled
11-46 to reimbursement of the amount of the tax paid in the same manner
11-47 and subject to the same procedures as other exempted users.
11-48 SECTION 35. Section 153.122, Tax Code, is amended to read as
11-49 follows:
11-50 Sec. 153.122. GASOLINE TAX REFUND PAYMENT [AND FILING FEE].
11-51 [(a)] After examination of the refund claim, the comptroller
11-52 before issuing a refund warrant shall deduct from the amount of the
11-53 refund[:]
11-54 [(1)] the two percent deducted originally by the
11-55 distributor on the first sale or distribution of the gasoline[; and]
11-56 [(2) $1.50 as a filing fee.]
11-57 [(b) The filing fees shall be set aside for the use and
11-58 benefit of the comptroller in the administration and enforcement of
11-59 this section. All filing fees shall be paid into the state
11-60 treasury and shall be paid out on vouchers and warrants in the
11-61 manner prescribed by law].
11-62 SECTION 36. Section 153.205, Tax Code, is amended to read as
11-63 follows:
11-64 Sec. 153.205. STATEMENT FOR PURCHASE OF DIESEL FUEL TAX
11-65 FREE. (a) The first sale or use of diesel fuel in this state is
11-66 taxable, except that sales of dyed diesel fuel, or of undyed diesel
11-67 fuel if the fuel will be used for an agricultural nonhighway
11-68 purpose, may be made without collecting the tax if the purchaser
11-69 furnishes to a permitted supplier a signed statement, including an
12-1 end user number or agricultural [user] exemption number issued by
12-2 the comptroller. A person who wants to use a signed statement to
12-3 purchase dyed diesel fuel must apply to the comptroller for an end
12-4 user number to be used in conjunction with a signed statement. A
12-5 person who wants to use a signed statement to purchase dyed or
12-6 undyed diesel fuel for an agricultural nonhighway purpose must
12-7 apply to the comptroller for an agricultural exemption number to be
12-8 used in conjunction with a signed statement. A supplier may not
12-9 make a tax-free sale of any diesel fuel to a purchaser using a
12-10 signed statement unless the purchaser has an end user number or
12-11 agricultural exemption number issued by the comptroller under this
12-12 section [that stipulates that:]
12-13 [(1) the purchaser does not operate any diesel-powered
12-14 motor vehicles on the public highway;]
12-15 [(2) all of the diesel fuel will be consumed by the
12-16 purchaser and no diesel fuel purchased on a signed statement will
12-17 be resold; and]
12-18 [(3) none of the diesel fuel purchased in this state
12-19 will be delivered or permitted by the purchaser to be delivered
12-20 into fuel supply tanks of motor vehicles].
12-21 (b) A sale of dyed diesel fuel may be made without
12-22 collecting the tax if the purchaser furnishes to a permitted
12-23 supplier a signed statement, including an end user number issued by
12-24 the comptroller, that stipulates that:
12-25 (1) none of the diesel fuel purchased on the signed
12-26 statement is of a type that may legally be used on the public
12-27 highway;
12-28 (2) all of the dyed diesel fuel purchased on the
12-29 signed statement will be consumed by the purchaser and will not be
12-30 resold; and
12-31 (3) none of the dyed diesel fuel purchased on the
12-32 signed statement will be delivered or permitted to be delivered
12-33 into the fuel supply tank of a motor vehicle operated on the public
12-34 highways of this state.
12-35 (c) A sale of dyed or undyed diesel fuel for an agricultural
12-36 nonhighway use may be made without collecting the tax if the
12-37 purchaser furnishes to a permitted supplier a signed statement,
12-38 including an agricultural exemption number issued by the
12-39 comptroller, that stipulates that:
12-40 (1) all of the dyed and undyed diesel fuel purchased
12-41 on the signed statement will be used exclusively in agricultural
12-42 nonhighway equipment;
12-43 (2) all of the dyed and undyed diesel fuel purchased
12-44 on the signed statement will be consumed by the purchaser and will
12-45 not be resold; and
12-46 (3) none of the dyed or undyed diesel fuel purchased
12-47 on the signed statement will be delivered or permitted to be
12-48 delivered into the fuel supply tank of a motor vehicle operated on
12-49 the public highways of this state.
12-50 (d) A person may not make a tax-free purchase of any diesel
12-51 fuel under this section using a signed statement:
12-52 (1) for the purchase of more than 3,000 gallons of
12-53 dyed or undyed diesel fuel in a single transaction or delivery; or
12-54 (2) in a calendar month in which the person has
12-55 previously purchased more than 10,000 gallons of dyed or undyed
12-56 diesel fuel from all sources.
12-57 (e) Any gallons purchased in excess of the limitations
12-58 prescribed by Subsection (d) constitute a taxable purchase. The
12-59 purchaser paying the tax on dyed or undyed diesel fuel in excess of
12-60 the limitations prescribed by Subsection (d) may claim a refund of
12-61 the tax paid on any dyed or undyed diesel fuel used for nonhighway
12-62 purposes under Section 153.222.
12-63 (f) A supplier may not make a tax-free sale of any diesel
12-64 fuel under this section to a purchaser using a signed statement:
12-65 (1) for the sale of more than 3,000 gallons of dyed or
12-66 undyed diesel fuel in a single transaction or delivery; or
12-67 (2) in a calendar month in which the supplier has
12-68 previously sold more than 10,000 gallons of dyed or undyed diesel
12-69 fuel to the purchaser.
13-1 (g) Any gallons sold in excess of the limitations prescribed
13-2 by Subsection (f) constitute a taxable sale. The purchaser paying
13-3 the tax on dyed or undyed diesel fuel in excess of the limitations
13-4 prescribed by Subsection (f) may claim a refund of the tax paid on
13-5 any dyed or undyed diesel fuel used for nonhighway purposes under
13-6 Section 153.222.
13-7 (h) [(c)] The signed statement and end user number or
13-8 agricultural [user] exemption number from the purchaser as provided
13-9 by this section relieves the permitted supplier from the burden of
13-10 proof that the sale of dyed diesel fuel or of undyed diesel fuel
13-11 for an agricultural nonhighway purpose was not taxable to the
13-12 purchaser and remains in effect unless:
13-13 (1) the statement is revoked in writing by the
13-14 purchaser or supplier; or
13-15 (2) the comptroller notifies the supplier in writing
13-16 that the purchaser may no longer make tax-free purchases[; or]
13-17 [(3) the supplier is put on notice by making taxable
13-18 sales of diesel fuel to a purchaser who has previously submitted a
13-19 signed statement to this supplier].
13-20 (i) [(d) A taxable sale to a person who has previously
13-21 submitted a signed statement creates a rebuttable presumption that
13-22 the supplier had reasonable notice that all subsequent sales should
13-23 have been taxable.]
13-24 [(e)] A taxable use of any part of the dyed or undyed diesel
13-25 fuel purchased under a signed statement shall, in addition to any
13-26 criminal penalty, forfeit the right of the person to purchase dyed
13-27 or undyed diesel fuel tax free for a period of one year from the
13-28 date of the offense, and any tax, interest, and penalty found to be
13-29 due through false or erroneous execution or continuance of a
13-30 promissory statement by the purchaser, if assessed to the supplier,
13-31 is a debt of the purchaser to the supplier until paid, and is
13-32 recoverable at law in the same manner as the purchase price of the
13-33 fuel. The person may, however, claim a refund of the tax paid on
13-34 any undyed diesel fuel used for nonhighway purposes under Section
13-35 153.222.
13-36 [(f) The statement must be signed by the purchaser or his
13-37 representative.]
13-38 [(g) The comptroller's regulations may allow separate
13-39 operating divisions of corporations to give separate signed
13-40 statements as if they were different legal entities.]
13-41 [(h) The comptroller may promulgate necessary forms and
13-42 rules to administer and enforce this section.]
13-43 [(i) A permitted supplier may not make a tax-free sale of
13-44 dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
13-45 to a purchaser using a signed statement:]
13-46 [(1) for the sale of more than 3,000 gallons of dyed
13-47 or undyed diesel fuel in a single transaction; or]
13-48 [(2) in a calendar month in which the supplier has
13-49 previously sold more than 10,000 gallons of dyed or undyed diesel
13-50 fuel to the purchaser.]
13-51 [(j)(1) A sale of dyed diesel fuel, or undyed diesel fuel
13-52 for agricultural purposes, may be made without collecting tax from
13-53 a purchaser who operates one or more motor vehicles on the public
13-54 highway and who furnishes to a permitted supplier a signed
13-55 statement and end user number or agricultural user exemption number
13-56 only as provided in this subsection.]
13-57 [(2) The statement must stipulate that all the dyed or
13-58 undyed diesel fuel will be consumed by the purchaser for purposes
13-59 other than operating a motor vehicle on the public highway and that
13-60 no dyed or undyed diesel fuel purchased on a signed statement will
13-61 be resold or delivered into the fuel supply tanks of a motor
13-62 vehicle.]
13-63 [(3) Diesel fuel which may be sold without collection
13-64 of tax under this subsection must be of a type that may not be
13-65 legally used by the purchaser for the operation of a motor vehicle
13-66 on the public highway under state or federal law.]
13-67 [(4) Subsections (a), (c)(3), and (d) of this section
13-68 do not apply to sales of fuel under this subsection.]
13-69 [(k) A person who wants to use a signed statement to
14-1 purchase dyed diesel fuel must apply to the comptroller for an end
14-2 user number to be used in conjunction with a signed statement. A
14-3 person who wants to use a signed statement to purchase dyed or
14-4 undyed diesel fuel for agricultural purposes must apply to the
14-5 comptroller for an agricultural user exemption number to be used in
14-6 conjunction with a signed statement. A person may not make a
14-7 tax-free sale of any diesel fuel to a purchaser using a signed
14-8 statement unless the purchaser has an end user number or
14-9 agricultural user exemption number issued by the comptroller under
14-10 this subsection.]
14-11 SECTION 37. Subsections (c) and (i), Section 153.206, Tax
14-12 Code, are amended to read as follows:
14-13 (c) A dyed diesel fuel bonded user, agricultural bonded
14-14 user, or other user, except a diesel tax prepaid user, shall report
14-15 and pay to the state the tax at the rate imposed on each gallon of
14-16 diesel fuel delivered by him into the fuel supply tanks of a motor
14-17 vehicle, unless the tax has been paid to a permitted supplier or a
14-18 dealer, or, as a diesel tax prepaid user, the tax has been prepaid
14-19 directly to the comptroller.
14-20 (i) A dyed diesel fuel bonded user, an agricultural bonded
14-21 user, or a permitted interstate trucker is entitled to deduct
14-22 one-half of one percent of the taxable gallons of diesel fuel on
14-23 timely payment of the taxes to this state for the expense of
14-24 recordkeeping, reporting, and remitting the tax.
14-25 SECTION 38. The heading to Section 153.217, Tax Code, is
14-26 amended to read as follows:
14-27 Sec. 153.217. LIST OF SUPPLIERS, DYED DIESEL FUEL BONDED
14-28 USERS, AGRICULTURAL BONDED USERS, AVIATION FUEL DEALERS, AND DIESEL
14-29 FUEL JOBBERS.
14-30 SECTION 39. Subsection (j), Section 153.219, Tax Code, is
14-31 amended to read as follows:
14-32 (j) A supplier shall keep:
14-33 (1) an itemized statement showing by load the number
14-34 of gallons of all diesel fuel received during the preceding
14-35 calendar month for export;
14-36 (2) an itemized statement showing by load the number
14-37 of gallons of all diesel fuel exported from this state by
14-38 destination state or country;
14-39 (3) an itemized statement showing by load the number
14-40 of gallons of all diesel fuel imported during the preceding
14-41 calendar month by [destination] state or country of origin;
14-42 (4) an itemized statement differentiating between dyed
14-43 and undyed diesel fuel and showing by purchaser, end user number,
14-44 or agricultural [user] exemption number the number of gallons of
14-45 dyed and undyed diesel fuel sold tax free to a purchaser using a
14-46 signed statement in accordance with Section 153.205; and
14-47 (5) an itemized statement showing by purchaser and
14-48 permit number the number of gallons of dyed and undyed diesel fuel
14-49 sold tax free to dyed diesel fuel bonded users and agricultural
14-50 bonded users.
14-51 SECTION 40. Subsections (a) and (c), Section 153.221, Tax
14-52 Code, are amended to read as follows:
14-53 (a) On or before the 25th day of each month, a supplier, a
14-54 dealer required to collect the tax under Section 153.206(b), or a
14-55 dyed diesel fuel bonded user, agricultural bonded user, or other
14-56 user required to pay the tax under Section 153.206(c) shall file a
14-57 report of diesel fuel transactions or of diesel fuel delivered by a
14-58 dyed diesel fuel bonded user, agricultural bonded user, or other
14-59 user into the fuel tank of a motor vehicle owned or operated by the
14-60 user and such supplements as the comptroller may require and remit
14-61 the amount of tax required to be collected or to be paid during the
14-62 preceding month. A report must be filed on a form or in a manner
14-63 provided by the comptroller and contain information required by the
14-64 comptroller, showing complete and detailed information of diesel
14-65 fuel transactions or use during the preceding month. A supplier
14-66 required to file a report under this section who has not sold,
14-67 used, or distributed any diesel fuel during the reporting period
14-68 shall file with the comptroller the report setting forth the facts
14-69 or information. The failure of a supplier, dealer, or dyed diesel
15-1 fuel bonded user, agricultural bonded user, or other user to obtain
15-2 forms or software from the comptroller is no excuse for the failure
15-3 to file a report. The report must be executed by the supplier,
15-4 dealer, or user, or his representative, and is subject to the
15-5 penalties provided in this chapter.
15-6 (c) No report is required to be filed by:
15-7 (1) an aviation fuel dealer;
15-8 (2) a trip permit user;
15-9 (3) a diesel tax prepaid user;
15-10 (4) a person issuing signed statements; or
15-11 (5) [a common or contract carrier; or]
15-12 [(6)] a diesel fuel jobber.
15-13 SECTION 41. Subsection (a), Section 153.222, Tax Code, is
15-14 amended to read as follows:
15-15 (a) A dealer or diesel fuel jobber who has paid tax on
15-16 diesel fuel that has been used or sold for use by the dealer or
15-17 diesel fuel jobber for any purpose other than propelling a motor
15-18 vehicle on the public highways of this state or that has been sold
15-19 to the United States or a public school district in this state for
15-20 the exclusive use of the purchaser, or to a commercial
15-21 transportation company for exclusive use in providing public school
15-22 transportation services to a school district under Section 34.008,
15-23 Education Code, without adding the amount of the tax to his selling
15-24 price, and a user who has paid tax on any diesel fuel that has been
15-25 used by him for a purpose other than propelling a motor vehicle on
15-26 the public highways, is a public school district and has paid the
15-27 tax on diesel fuel purchased for its exclusive use, is a commercial
15-28 transportation company and has paid the tax on diesel fuel used by
15-29 the company exclusively to provide public school transportation
15-30 services to a school district under Section 34.008, Education Code,
15-31 or is a person who has paid tax on diesel fuel used in a commercial
15-32 motor vehicle as provided by Section 153.203(10) may file a claim
15-33 for a refund of taxes paid, less the deduction allowed vendors [and
15-34 a filing fee].
15-35 SECTION 42. Section 153.225, Tax Code, is amended to read as
15-36 follows:
15-37 Sec. 153.225. DIESEL FUEL TAX REFUND PAYMENTS [AND FILING
15-38 FEE]. [(a)] After examination and approval of the refund claim,
15-39 the comptroller before issuing a refund warrant shall deduct from
15-40 the amount of the refund payment[:]
15-41 [(1)] the 2 percent deducted originally by the
15-42 supplier on the sale or delivery of the diesel fuel[; and]
15-43 [(2) $1.50 as a filing fee.]
15-44 [(b) The filing fees shall be set aside for the use and
15-45 benefit of the comptroller in the administration and enforcement of
15-46 the provisions of this chapter, and for payment of expenses in
15-47 furnishing the claim forms and other forms. All filing fees shall
15-48 be paid into the state treasury and shall be paid out on vouchers
15-49 and warrants in the manner prescribed by law].
15-50 SECTION 43. Subsections (c) and (d), Section 153.308, Tax
15-51 Code, are amended to read as follows:
15-52 (c) The tax on one percent of the taxable gallons of
15-53 liquefied gas sold in this state shall be allocated to the
15-54 permitted dealer making the sale for the expense of collecting,
15-55 accounting for, reporting, and timely remitting the taxes collected
15-56 and keeping the records. The allocation allowance shall be
15-57 deducted by the permitted dealers in the payment to the state.
15-58 (d) The tax of one-half of one percent of the taxable
15-59 gallons of liquefied gas used in this state by persons permitted as
15-60 interstate truckers shall be allocated to the interstate trucker
15-61 making the use of the liquefied gas for the expense of accounting
15-62 for, reporting, and timely remitting the taxes due.
15-63 SECTION 44. Subsection (c), Section 153.311, Tax Code, is
15-64 amended to read as follows:
15-65 (c) A permitted interstate trucker is entitled to a refund
15-66 of the amount of the Texas liquefied gas tax paid on each gallon of
15-67 liquefied gas subsequently used outside this state. On
15-68 verification by the comptroller that the interstate trucker's
15-69 report was timely filed with all information required, the
16-1 comptroller [he] shall issue a warrant to the interstate trucker
16-2 for the amount of the refund less the one percent deducted
16-3 originally by the permitted dealer making the sale [and a filing
16-4 fee of $1.50]. Failure to file an interstate trucker report by the
16-5 25th of the month following the end of a calendar quarter forfeits
16-6 the right to a refund.
16-7 SECTION 45. Subdivision (13), Section 154.001, Tax Code, is
16-8 amended to read as follows:
16-9 (13) "Permit holder" means a bonded agent,
16-10 distributor, wholesaler, manufacturer, importer, or retailer
16-11 required to obtain a permit under Section 154.101.
16-12 SECTION 46. Subsections (a), (b), and (h), Section 154.101,
16-13 Tax Code, are amended to read as follows:
16-14 (a) A person may not engage in business as a distributor,
16-15 wholesaler, bonded agent, manufacturer, importer, or retailer
16-16 unless the person has applied for and received the applicable
16-17 permit from the comptroller.
16-18 (b) Each distributor, wholesaler, bonded agent,
16-19 manufacturer, importer, or retailer shall obtain a permit for each
16-20 place of business owned or operated by the distributor, wholesaler,
16-21 bonded agent, manufacturer, importer, or retailer.
16-22 (h) Permits for engaging in business as a distributor,
16-23 wholesaler, bonded agent, manufacturer, importer, or retailer shall
16-24 be governed exclusively by the provisions of this code.
16-25 SECTION 47. Subsection (a), Section 154.102, Tax Code, is
16-26 amended to read as follows:
16-27 (a) The comptroller may issue a combination permit for
16-28 cigarettes and tobacco products to a person who is a distributor,
16-29 wholesaler, bonded agent, manufacturer, importer, or retailer as
16-30 defined by this chapter and Chapter 155 for both cigarettes and
16-31 tobacco products.
16-32 SECTION 48. Subsection (a), Section 154.110, Tax Code, is
16-33 amended to read as follows:
16-34 (a) The comptroller shall issue a permit to a distributor,
16-35 wholesaler, bonded agent, manufacturer, importer, or retailer if
16-36 the comptroller:
16-37 (1) has received an application and fee, if required;
16-38 (2) believes that the applicant has complied with
16-39 Section 154.101; and
16-40 (3) determines that issuing the permit will not
16-41 jeopardize the administration and enforcement of this chapter.
16-42 SECTION 49. Subsection (a), Section 154.501, Tax Code, is
16-43 amended to read as follows:
16-44 (a) A person violates this chapter if the person:
16-45 (1) is a distributor, wholesaler, manufacturer,
16-46 importer, bonded agent, manufacturer's representative, or retailer
16-47 and fails to keep records required by this chapter;
16-48 (2) engages in the business of a bonded agent,
16-49 distributor, wholesaler, manufacturer, importer, or retailer
16-50 without a valid permit;
16-51 (3) is a distributor, wholesaler, manufacturer,
16-52 importer, bonded agent, or retailer and fails to make a report or
16-53 makes a false or incomplete report or application required by this
16-54 chapter to the comptroller; or
16-55 (4) is a person affected by this chapter and fails or
16-56 refuses to abide by or violates a provision of this chapter or a
16-57 rule adopted by the comptroller under this chapter.
16-58 SECTION 50. Subdivision (11), Section 155.001, Tax Code, is
16-59 amended to read as follows:
16-60 (11) "Permit holder" means a bonded agent,
16-61 distributor, wholesaler, manufacturer, importer, or retailer
16-62 required to obtain a permit under Section 155.041.
16-63 SECTION 51. Subsections (a), (b), and (h), Section 155.041,
16-64 Tax Code, are amended to read as follows:
16-65 (a) A person may not engage in business as a distributor,
16-66 wholesaler, bonded agent, manufacturer, importer, or retailer
16-67 unless the person has applied for and received the applicable
16-68 permit from the comptroller.
16-69 (b) Each distributor, wholesaler, bonded agent,
17-1 manufacturer, importer, or retailer shall obtain a permit for each
17-2 place of business owned or operated by the distributor, wholesaler,
17-3 bonded agent, manufacturer, importer, or retailer.
17-4 (h) Permits for engaging in business as a distributor,
17-5 wholesaler, bonded agent, manufacturer, importer, or retailer shall
17-6 be governed exclusively by the provisions of this code.
17-7 SECTION 52. Subsection (a), Section 155.048, Tax Code, is
17-8 amended to read as follows:
17-9 (a) The comptroller shall issue a permit to a distributor,
17-10 wholesaler, bonded agent, manufacturer, importer, or retailer if
17-11 the comptroller:
17-12 (1) has received an application and fee, if required;
17-13 (2) does not reject the application and deny the
17-14 permit under Section 155.0481; and
17-15 (3) determines that issuing the permit will not
17-16 jeopardize the administration and enforcement of this chapter.
17-17 SECTION 53. Section 155.111, Tax Code, is amended by adding
17-18 Subsection (d) to read as follows:
17-19 (d) If more than 50 percent of all untaxed tobacco products
17-20 received by the distributor in this state are actually sold outside
17-21 of this state, the distributor shall include in the report only
17-22 tobacco products that are sold in this state.
17-23 SECTION 54. Subsection (a), Section 155.201, Tax Code, is
17-24 amended to read as follows:
17-25 (a) A person violates this chapter if the person:
17-26 (1) is a distributor, wholesaler, manufacturer,
17-27 importer, bonded agent, manufacturer's representative, or retailer
17-28 and fails to keep records required by this chapter;
17-29 (2) engages in the business of a bonded agent,
17-30 distributor, wholesaler, manufacturer, importer, or retailer
17-31 without a valid permit;
17-32 (3) is a distributor, wholesaler, manufacturer,
17-33 importer, bonded agent, or retailer and fails to make a report
17-34 required by this chapter to the comptroller or makes a false or
17-35 incomplete report or application required by this chapter to the
17-36 comptroller; or
17-37 (4) is a person affected by this chapter and fails or
17-38 refuses to abide by or violates a provision of this chapter or a
17-39 rule adopted by the comptroller under this chapter.
17-40 SECTION 55. Section 171.1032, Tax Code, is amended by
17-41 amending Subsection (a) and adding Subsection (c) to read as
17-42 follows:
17-43 (a) Except for the gross receipts of a corporation that are
17-44 subject to the provisions of Section 171.1061, in apportioning
17-45 taxable earned surplus, the gross receipts of a corporation from
17-46 its business done in this state is the sum of the corporation's
17-47 receipts from:
17-48 (1) each sale of tangible personal property if the
17-49 property is delivered or shipped to a buyer in this state
17-50 regardless of the FOB point or another condition of the sale, and
17-51 each sale of tangible personal property shipped from this state to
17-52 a purchaser in another state in which the seller is not subject to
17-53 any tax on, or measured by, net income, without regard to whether
17-54 the tax is imposed;
17-55 (2) each service performed in this state;
17-56 (3) each rental of property situated in this state;
17-57 (4) the use of a patent, copyright, trademark,
17-58 franchise, or license in this state;
17-59 (5) each sale of real property located in this state,
17-60 including royalties from oil, gas, or other mineral interests;
17-61 [and]
17-62 (6) each partnership or joint venture to the extent
17-63 provided by Subsection (c); and
17-64 (7) other business done in this state.
17-65 (c) A corporation shall include in its gross receipts
17-66 computed under Subsection (a) the corporation's share of the gross
17-67 receipts of each partnership and joint venture of which the
17-68 corporation is a part apportioned to this state as though the
17-69 corporation directly earned the receipts, including receipts from
18-1 business done with the corporation.
18-2 SECTION 56. Section 171.1051, Tax Code, is amended by
18-3 amending Subsection (a) and adding Subsection (d) to read as
18-4 follows:
18-5 (a) Except for the gross receipts of a corporation that are
18-6 subject to the provisions of Section 171.1061, in apportioning
18-7 taxable earned surplus, the gross receipts of a corporation from
18-8 its entire business is the sum of the corporation's receipts from:
18-9 (1) each sale of the corporation's tangible personal
18-10 property;
18-11 (2) each service, rental, or royalty; [and]
18-12 (3) each partnership and joint venture as provided by
18-13 Subsection (d); and
18-14 (4) other business.
18-15 (d) A corporation shall include in its gross receipts
18-16 computed under Subsection (a) the corporation's share of the gross
18-17 receipts of each partnership and joint venture of which the
18-18 corporation is a part.
18-19 SECTION 57. Section 171.106, Tax Code, is amended by adding
18-20 Subsection (h) to read as follows:
18-21 (h) A banking corporation shall exclude from the numerator
18-22 of the bank's apportionment factor interest earned on federal funds
18-23 and interest earned on securities sold under an agreement to
18-24 repurchase that are held in this state in a correspondent bank that
18-25 is domiciled in this state. In this subsection, "correspondent"
18-26 has the meaning assigned by 12 C.F.R. Section 206.2(c).
18-27 SECTION 58. Section 171.109, Tax Code, is amended by adding
18-28 Subsection (n) to read as follows:
18-29 (n) A corporation must use the equity method of accounting
18-30 when reporting an investment in a partnership or joint venture.
18-31 SECTION 59. Section 171.1121, Tax Code, is amended by adding
18-32 Subsection (e) to read as follows:
18-33 (e) A corporation's share of a partnership's gross receipts
18-34 that is included in the corporation's federal taxable income must
18-35 be used in computing the corporation's gross receipts under this
18-36 section. Unless otherwise provided by this chapter, a corporation
18-37 may not deduct costs incurred from the corporation's share of a
18-38 partnership's gross receipts. The gross receipts must be
18-39 apportioned as though the corporation directly earned them.
18-40 SECTION 60. Subsection (b), Section 171.260, Tax Code, is
18-41 amended to read as follows:
18-42 (b) The savings and loan commissioner shall appoint a
18-43 conservator under Subtitle B or C, Title 3, Finance Code, to pay
18-44 the franchise tax of a savings and loan association [corporation]
18-45 that is organized under the laws of this state and that the
18-46 commissioner certifies as being delinquent in the payment of the
18-47 association's [corporation's] franchise tax.
18-48 SECTION 61. Subsection (d), Section 171.501, Tax Code, is
18-49 amended to read as follows:
18-50 (d) The amount of a refund under this section is the lesser
18-51 of $5,000 or 25 percent of the amount of franchise tax due [taxes
18-52 paid] for any one privilege period before any other applicable
18-53 credits. For purposes of this subsection, the initial and second
18-54 periods are considered to be the same privilege period.
18-55 SECTION 62. Section 171.655, Tax Code, is amended to read as
18-56 follows:
18-57 Sec. 171.655. LIMITATION. The credit claimed for each
18-58 privilege period may not exceed 50 percent of the amount of [net]
18-59 franchise tax due for the privilege period before [after] any other
18-60 applicable tax credits.
18-61 SECTION 63. Section 171.685, Tax Code, is amended to read as
18-62 follows:
18-63 Sec. 171.685. LIMITATION. The total credits claimed under
18-64 this subchapter for a privilege period may not exceed 50 percent of
18-65 the amount of [net] franchise tax due for the privilege period
18-66 before [after] any other applicable tax credits.
18-67 SECTION 64. Subsection (b), Section 171.705, Tax Code, is
18-68 amended to read as follows:
18-69 (b) A corporation may not claim a credit in an amount that
19-1 exceeds 90 percent of the amount of tax due for the report before
19-2 any other applicable credits.
19-3 SECTION 65. Section 171.753, Tax Code, is amended to read as
19-4 follows:
19-5 Sec. 171.753. CALCULATION OF CREDIT. A corporation may
19-6 establish a credit equal to five [25] percent of the total wages
19-7 and salaries paid by the corporation for qualifying jobs during the
19-8 period upon which the tax is based.
19-9 SECTION 66. Section 171.754, Tax Code, is amended to read as
19-10 follows:
19-11 Sec. 171.754. LENGTH OF CREDIT. The credit established
19-12 shall be established on [claimed in five equal installments of
19-13 one-fifth the credit amount over the] five consecutive reports
19-14 beginning with the report based upon the period during which the
19-15 qualifying jobs were created.
19-16 SECTION 67. Section 171.756, Tax Code, is amended to read as
19-17 follows:
19-18 Sec. 171.756. CARRYFORWARD. (a) If a corporation is
19-19 eligible for a credit [from an installment] that exceeds the
19-20 limitations under Section 171.755(a) or (b), the corporation may
19-21 carry the unused credit forward for not more than five consecutive
19-22 reports.
19-23 (b) A carryforward is considered the remaining portion of a
19-24 credit [an installment] that cannot be claimed in the current year
19-25 because of the tax limitation under Section 171.755. A
19-26 carryforward is added to the next year's [installment of the]
19-27 credit in determining the tax limitation for that year. A credit
19-28 carryforward from a previous report is considered to be utilized
19-29 before the current year credit [installment].
19-30 SECTION 68. Section 171.831, Tax Code, is amended to read as
19-31 follows:
19-32 Sec. 171.831. DEFINITION. In this subchapter, "school-age
19-33 child care" means care provided before or [and] after school and
19-34 during the summer and holidays for children who are at least five
19-35 years of age but younger than 14 years of age.
19-36 SECTION 69. Subsection (c), Section 171.834, Tax Code, is
19-37 amended to read as follows:
19-38 (c) A corporation may not claim a credit in an amount that
19-39 exceeds 50 percent of the amount of [net] franchise tax due, before
19-40 [after] applying any other credits, for the reporting period.
19-41 SECTION 70. Chapter 171, Tax Code, is amended by adding
19-42 Subchapter S to read as follows:
19-43 SUBCHAPTER S. CREDITS LIMITATION
19-44 Sec. 171.851. LIMITATION. The total credits claimed under
19-45 this chapter for a report, including the amount of any carryforward
19-46 credits, may not exceed the amount of franchise tax due for the
19-47 report.
19-48 SECTION 71. Section 211.055, Tax Code, is amended to read as
19-49 follows:
19-50 Sec. 211.055. MAXIMUM TAX. The amount of tax imposed by
19-51 this chapter may not exceed the amount of the tax imposed under
19-52 Section 2001, Internal Revenue Code, reduced by the unified credit
19-53 provided under Section 2010, Internal Revenue Code [taxes imposed
19-54 by this chapter, when added to the federal tax as finally assessed
19-55 and determined, may not exceed the amount of the federal tax which,
19-56 without application of this chapter and the federal credit and the
19-57 generation-skipping transfer tax credit to which it refers, would
19-58 otherwise be payable to the federal government under Subtitle B,
19-59 Chapters 11 and 13, Internal Revenue Code].
19-60 SECTION 72. Subchapter D, Chapter 321, Tax Code, is amended
19-61 by adding Section 321.312 to read as follows:
19-62 Sec. 321.312. RETENTION OF CERTAIN MUNICIPAL SALES TAXES. A
19-63 municipality that holds a sales and use tax permit issued by the
19-64 comptroller and that imposes a sales and use tax may retain the
19-65 portion of the tax that the municipality collects and that
19-66 constitutes the municipality's own tax. The municipality shall
19-67 remit to the comptroller all other applicable local sales and use
19-68 taxes and the state sales and use tax.
19-69 SECTION 73. Subchapter D, Chapter 322, Tax Code, is amended
20-1 by adding Section 322.306 to read as follows:
20-2 Sec. 322.306. RETENTION OF CERTAIN SPECIAL PURPOSE DISTRICT
20-3 SALES TAXES. A taxing entity that holds a sales and use tax permit
20-4 issued by the comptroller and that imposes a sales and use tax may
20-5 retain the portion of the tax that the taxing entity collects and
20-6 that constitutes the entity's own tax. The taxing entity shall
20-7 remit to the comptroller all other applicable local sales and use
20-8 taxes and the state sales and use tax.
20-9 SECTION 74. Subchapter D, Chapter 323, Tax Code, is amended
20-10 by adding Section 323.312 to read as follows:
20-11 Sec. 323.312. RETENTION OF CERTAIN COUNTY SALES TAXES. A
20-12 county that holds a sales and use tax permit issued by the
20-13 comptroller and that imposes a sales and use tax may retain the
20-14 portion of the tax that the county collects and that constitutes
20-15 the county's own tax. The county shall remit to the comptroller
20-16 all other applicable local sales and use taxes and the state sales
20-17 and use tax.
20-18 SECTION 75. Subsection (a), Section 311.045, Health and
20-19 Safety Code, is amended to read as follows:
20-20 (a) A nonprofit hospital or hospital system shall annually
20-21 satisfy the requirements of this subchapter and of Sections
20-22 11.18(d)(1), 151.310(a)(2) and (e), and 171.063(a)(1), Tax Code, to
20-23 provide community benefits which include charity care and
20-24 government-sponsored indigent health care by complying with one or
20-25 more of the standards set forth in Subsection (b). The hospital or
20-26 hospital system shall file a statement with the Bureau of State
20-27 Health Data and Policy Analysis at the department and[, with] the
20-28 chief appraiser of the local appraisal district[, and with the
20-29 comptroller's office] no later than the 120th day after the
20-30 hospital's or hospital system's fiscal year ends, stating which of
20-31 the standards in Subsection (b) have been satisfied, provided,
20-32 however, that the first report shall be filed no later than the
20-33 120th day after the end of the hospital's or hospital system's
20-34 fiscal year ending during 1994. For hospitals in a hospital
20-35 system, the corporate parent may elect to satisfy the charity care
20-36 requirements of this subchapter for each of the hospitals within
20-37 the system on a consolidated basis.
20-38 SECTION 76. Section 74.402, Property Code, is amended to
20-39 read as follows:
20-40 Sec. 74.402. NOTICE OF SALE. Before the 21st day preceding
20-41 the day on which a public sale is held under Section 74.401, the
20-42 comptroller shall publish notice of the sale in a newspaper of
20-43 general circulation in Travis County or in the county where the
20-44 sale is to be held. If the public sale is to be held on the
20-45 Internet or by an online auction, the comptroller may post the
20-46 notice on the comptroller's own website before the seventh day
20-47 preceding the date on which the sale or auction is held.
20-48 SECTION 77. Subsection (a), Section 451.616, Transportation
20-49 Code, is amended to read as follows:
20-50 (a) A unit of election that has withdrawn from an authority
20-51 [The comptroller] shall remit to the [withhold from the amount of
20-52 sales and use tax revenue refunded to a unit of election that has
20-53 withdrawn from an] authority one-half of the difference between the
20-54 cost of providing services to persons with disabilities in the unit
20-55 of election and the fares charged during the period in which the
20-56 sales and use tax was collected [and remit this amount to the
20-57 authority providing the services].
20-58 SECTION 78. Subsection (e), Section 11.011, Texas Racing Act
20-59 (Article 179e, Vernon's Texas Civil Statutes), is amended to read
20-60 as follows:
20-61 (e) The racetrack where the wager is made is responsible for
20-62 reporting and remitting the state's share of the pari-mutuel pool.
20-63 [If intrastate wagering pools are combined between tracks, the
20-64 track where the race originates is responsible for the state's
20-65 share of the pari-mutuel pool regardless of whether a shortage or
20-66 error occurred at the originating track or receiving track.]
20-67 SECTION 79. Section 1, Article 6550c-1, Revised Statutes, is
20-68 amended by amending Subdivision (6) and adding Subdivision (7) to
20-69 read as follows:
21-1 (6) "District property" means all property the
21-2 district owns or leases under a long-term lease.
21-3 (7) "System" means all of the commuter rail and
21-4 intermodal facilities leased or owned by or operated on behalf of a
21-5 district created under this article.
21-6 SECTION 80. Section 9, Article 6550c-1, Revised Statutes, is
21-7 amended to read as follows:
21-8 Sec. 9. SALES AND USE TAXES. (a) A [district shall collect
21-9 or cause to be collected] sales and use tax is imposed [taxes] on
21-10 items sold on district property. The sales and use tax shall be
21-11 imposed [collected] at the rate of the highest combination of
21-12 [state and] local sales and use taxes imposed at the time of the
21-13 district's creation in any local governmental jurisdiction which is
21-14 a member of a district. The [After deducting the state share of
21-15 sales and use taxes, the] comptroller shall remit to a district the
21-16 local sales and use tax collected on the district's property. All
21-17 other local sales and use taxes that would otherwise be imposed on
21-18 district property are preempted by the imposition of this tax.
21-19 (b) The comptroller shall administer, collect, and enforce a
21-20 tax imposed under this Act. Chapter 321, Tax Code, governs the
21-21 computation, administration, governance, and use of the tax except
21-22 as inconsistent with this Act.
21-23 (c) The district shall notify the comptroller in writing by
21-24 United States registered or certified mail of the district's
21-25 creation and of its intent to impose the sales and use tax under
21-26 this Act. The district shall provide to the comptroller all
21-27 information required to implement the tax, including:
21-28 (1) an adequate map showing the property boundaries of
21-29 the district;
21-30 (2) a certified copy of the resolution of the district
21-31 board adopting the tax; and
21-32 (3) certified copies of the resolutions of the
21-33 governing bodies of the municipalities creating the district and of
21-34 the commissioners courts in the counties in which the
21-35 municipalities are located.
21-36 (d) Not later than the 30th day after the date the
21-37 comptroller receives the notice, map, and other information, the
21-38 comptroller shall inform the district whether the comptroller is
21-39 prepared to administer the tax.
21-40 (e) At the same time the district notifies the comptroller
21-41 under Subsection (c) of this section, the district shall notify
21-42 each affected local governmental jurisdiction of the district's
21-43 creation and provide each jurisdiction with an adequate map showing
21-44 the property boundaries of the district.
21-45 (f) Not later than the 30th day after the date the district
21-46 acquires additional territory, the district shall notify the
21-47 comptroller and each affected local governmental jurisdiction of
21-48 the acquisition. The district must include with each notification
21-49 an adequate map showing the new property boundaries of the district
21-50 and the date the additional territory was acquired. Not later than
21-51 the 30th day after the date the comptroller receives the notice
21-52 under this subsection, the comptroller shall inform the district
21-53 whether the comptroller is prepared to administer the tax in the
21-54 additional territory.
21-55 (g) A tax imposed under this Act or the repeal of a tax
21-56 abolished under this Act takes effect on the first day of the first
21-57 complete calendar quarter that occurs after the expiration of the
21-58 first complete calendar quarter that occurs after the date the
21-59 comptroller receives a notice of the action as required by this
21-60 section.
21-61 SECTION 81. The following provisions of the Tax Code are
21-62 repealed:
21-63 (1) Subsections (d) and (e), Section 151.319;
21-64 (2) Subsections (c) and (d), Section 171.757; and
21-65 (3) Subsection (b), Section 201.052.
21-66 SECTION 82. Each change in law made by this Act to the
21-67 following provisions is a clarification of existing law and does
21-68 not imply that existing law may be construed as inconsistent with
21-69 the law as amended by this Act:
22-1 (1) Subsection (b), Section 111.0081, Tax Code;
22-2 (2) Subsection (a), Section 151.007, Tax Code;
22-3 (3) Section 151.010, Tax Code;
22-4 (4) Section 151.057, Tax Code;
22-5 (5) Subsection (b), Section 151.257, Tax Code;
22-6 (6) Subsection (a), Section 151.308, Tax Code;
22-7 (7) Section 151.310, Tax Code;
22-8 (8) Section 151.313, Tax Code;
22-9 (9) Subsection (a), Section 151.317, Tax Code;
22-10 (10) Subsections (a) and (t), Section 151.318, Tax
22-11 Code;
22-12 (11) Subsection (e), Section 151.3185, Tax Code;
22-13 (12) Subsection (b), Section 151.319, Tax Code;
22-14 (13) Subsection (a), Section 152.047, Tax Code;
22-15 (14) Subsection (d), Section 152.091, Tax Code;
22-16 (15) Subdivision (25), Section 153.001, Tax Code;
22-17 (16) Subsection (i), Section 153.018, Tax Code;
22-18 (17) Subsection (a), Section 153.117, Tax Code;
22-19 (18) Section 153.205, Tax Code;
22-20 (19) Subsection (c), Section 153.206, Tax Code;
22-21 (20) Subsection (j), Section 153.219, Tax Code;
22-22 (21) Subsections (a) and (c), Section 153.221, Tax
22-23 Code;
22-24 (22) Subdivision (13), Section 154.001, Tax Code;
22-25 (23) Subsections (a), (b), and (h), Section 154.101,
22-26 Tax Code;
22-27 (24) Subsection (a), Section 154.102, Tax Code;
22-28 (25) Subsection (a), Section 154.110, Tax Code;
22-29 (26) Subsection (a), Section 154.501, Tax Code;
22-30 (27) Subdivision (11), Section 155.001, Tax Code;
22-31 (28) Subsections (a), (b), and (h), Section 155.041,
22-32 Tax Code;
22-33 (29) Subsection (a), Section 155.048, Tax Code;
22-34 (30) Subsection (a), Section 155.201, Tax Code;
22-35 (31) Subsections (a) and (c), Section 171.1032, Tax
22-36 Code;
22-37 (32) Subsections (a) and (d), Section 171.1051, Tax
22-38 Code;
22-39 (33) Subsection (e), Section 171.1121, Tax Code;
22-40 (34) Subsection (b), Section 171.260, Tax Code;
22-41 (35) Section 171.831, Tax Code; and
22-42 (36) Subchapter S, Chapter 171, Tax Code.
22-43 SECTION 83. (a) The changes to Subsection (b), Section
22-44 326.023, Local Government Code, made by Section 2 of this Act apply
22-45 only to a petition filed with a commissioners court on or after the
22-46 effective date of that section. A petition filed before that date
22-47 is governed by the law in effect on the date the petition is filed,
22-48 and that law is continued in effect for that purpose.
22-49 (b) The changes to Section 326.029, Local Government Code,
22-50 made by Section 3 of this Act apply only to an order issued on or
22-51 after the effective date of that section. An order issued before
22-52 that date is governed by the law in effect on the date the order is
22-53 issued, and that law is continued in effect for that purpose.
22-54 SECTION 84. The comptroller of public accounts may adopt
22-55 rules and take other actions before October 1, 2001, as the
22-56 comptroller considers necessary or advisable to prepare for this
22-57 Act to take effect.
22-58 SECTION 85. (a) Except as otherwise provided by this
22-59 section, this Act takes effect September 1, 2001.
22-60 (b) Sections 12, 13, 14, 15, 17 through 26, 29 through 54,
22-61 72 through 74, and 78 of this Act, and Subdivisions (1) and (3),
22-62 Section 81 of this Act, take effect October 1, 2001.
22-63 (c) Sections 55 through 70 of this Act and Subdivision (2),
22-64 Section 81 of this Act, take effect January 1, 2002, and apply to a
22-65 report originally due on or after that date.
22-66 * * * * *