1-1 By: Jackson S.B. No. 1678
1-2 (In the Senate - Filed March 9, 2001; March 14, 2001, read
1-3 first time and referred to Committee on Finance; April 24, 2001,
1-4 reported favorably, as amended, by the following vote: Yeas 11,
1-5 Nays 0; April 24, 2001, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Jackson
1-7 Amend S.B. No. 1678 by inserting an appropriately numbered
1-8 SECTION of the bill to read as follows and renumbering subsequent
1-9 SECTIONs appropriately:
1-10 SECTION 3. Section 151.3511, Tax Code, as added by this Act,
1-11 expires August 31, 2003.
1-12 A BILL TO BE ENTITLED
1-13 AN ACT
1-14 relating to exempting certain electronic information services from
1-15 the sales and use tax.
1-16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-17 SECTION 1. Section 151.351, Tax Code, is amended to read as
1-18 follows:
1-19 Sec. 151.351. INFORMATION SERVICES AND DATA PROCESSING
1-20 SERVICES. Except as provided by Section 151.3511, there [There] is
1-21 exempted from the taxes imposed by this chapter 20 percent of the
1-22 value of information services and data processing services.
1-23 SECTION 2. Subchapter H, Chapter 151, Tax Code, is amended
1-24 by adding Section 151.3511 to read as follows:
1-25 Sec. 151.3511. LOCAL ELECTRONIC INFORMATION SERVICES. The
1-26 sale of an information service is exempt from the taxes imposed by
1-27 this chapter if the service:
1-28 (1) delivers its information by fax or electronic mail
1-29 over the Internet;
1-30 (2) does not contain any advertisements;
1-31 (3) is issued not more than once each business day;
1-32 (4) costs less than $500 for a yearly subscription or
1-33 an equivalent amount if the subscription is for a period other than
1-34 a year; and
1-35 (5) does not have more than 750 subscribers.
1-36 SECTION 3. (a) This Act takes effect July 1, 2001, if it
1-37 receives a vote of two-thirds of all the members elected to each
1-38 house, as provided by Section 39, Article III, Texas Constitution.
1-39 If this Act does not receive the vote necessary for effect on that
1-40 date, this Act takes effect October 1, 2001.
1-41 (b) The change in law made by this Act does not affect taxes
1-42 imposed before the effective date of this Act, and the law in
1-43 effect before the effective date of this Act is continued in effect
1-44 for purposes of the liability for and collection of those taxes.
1-45 * * * * *