By Jackson S.B. No. 1678
77R7980 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting certain electronic information services from
1-3 the sales and use tax.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.351, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 151.351. INFORMATION SERVICES AND DATA PROCESSING
1-8 SERVICES. Except as provided by Section 151.3511, there [There] is
1-9 exempted from the taxes imposed by this chapter 20 percent of the
1-10 value of information services and data processing services.
1-11 SECTION 2. Subchapter H, Chapter 151, Tax Code, is amended by
1-12 adding Section 151.3511 to read as follows:
1-13 Sec. 151.3511. LOCAL ELECTRONIC INFORMATION SERVICES. The
1-14 sale of an information service is exempt from the taxes imposed by
1-15 this chapter if the service:
1-16 (1) delivers its information by fax or electronic mail
1-17 over the Internet;
1-18 (2) does not contain any advertisements;
1-19 (3) is issued not more than once each business day;
1-20 (4) costs less than $500 for a yearly subscription or
1-21 an equivalent amount if the subscription is for a period other than
1-22 a year; and
1-23 (5) does not have more than 750 subscribers.
1-24 SECTION 3. (a) This Act takes effect July 1, 2001, if it
2-1 receives a vote of two-thirds of all the members elected to each
2-2 house, as provided by Section 39, Article III, Texas Constitution.
2-3 If this Act does not receive the vote necessary for effect on that
2-4 date, this Act takes effect October 1, 2001.
2-5 (b) The change in law made by this Act does not affect taxes
2-6 imposed before the effective date of this Act, and the law in
2-7 effect before the effective date of this Act is continued in effect
2-8 for purposes of the liability for and collection of those taxes.