79R1245 DAK-D
By: Davis of Dallas H.B. No. 119
A BILL TO BE ENTITLED
AN ACT
relating to the repeal of certain sales tax exemptions and refunds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The following sections of the Tax Code are
repealed:
(1) 151.3021;
(2) 151.3101;
(3) 151.315;
(4) 151.316;
(5) 151.3162;
(6) 151.317;
(7) 151.318;
(8) 151.3181;
(9) 151.3185;
(10) 151.319;
(11) 151.320;
(12) 151.322;
(13) 151.324;
(14) 151.325;
(15) 151.328(b) and (d);
(16) 151.329;
(17) 151.3291;
(18) 151.331;
(19) 151.335;
(20) 151.342;
(21) 151.351;
(22) 151.355; and
(23) 151.429.
SECTION 2. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3171 to read as follows:
Sec. 151.3171. RESIDENTIAL GAS AND ELECTRICITY. (a) In
this section, "residential use" means use:
(1) in a family dwelling or in a multifamily apartment
or housing complex or building or in a part of a building occupied
as a home or residence when the use is by the owner of the dwelling,
apartment, complex, or building or part of the building occupied;
or
(2) in a dwelling, apartment, house, or building or
part of a building occupied as a home or residence when the use is by
a tenant who occupies the dwelling, apartment, house, or building
or part of a building under a contract for an express initial term
for longer than 29 consecutive days.
(b) Gas and electricity are exempted from the taxes imposed
by this chapter when sold for residential use.
(c) The sale, production, distribution, lease, or rental
of, and the use, storage, or other consumption in this state of, gas
and electricity sold for residential use are exempted from the
taxes imposed by a municipality under Chapter 321 except as
provided by Section 321.105.
(d) Natural gas or electricity used during a regular monthly
billing period for both exempt and taxable purposes under a single
meter is totally exempt or taxable based on the predominant use of
the natural gas or electricity measured by that meter. The
comptroller may prescribe by rule the procedures by which a
purchaser must establish the predominant use of the natural gas or
electricity.
SECTION 3. The change in law made by this Act does not
affect taxes imposed before the effective date of this Act, and the
law in effect before the effective date of this Act is continued in
effect for purposes of the liability for and collection of those
taxes.
SECTION 4. This Act takes effect July 1, 2005, if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for effect on that
date, this Act takes effect October 1, 2005.