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79R5933 DAK-D

By:  Reyna                                                        H.B. No. 1724



A BILL TO BE ENTITLED

AN ACT

relating to the artificial lowering of the sales price of certain 
tangible personal property; providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter L, Chapter 151, Tax Code, is amended 
by adding Section 151.702 to read as follows:
	Sec. 151.702.  ARTIFICIAL LOWERING OF SALES PRICE IN CERTAIN 
CIRCUMSTANCES; CIVIL PENALTY.  (a)  A person who sells tangible 
personal property that is a taxable item under this chapter in 
conjunction with providing a service that is not a taxable item 
under this chapter relating to the installation, replacement, or 
maintenance of the property is liable for a civil penalty if the 
person charges a sales price for the property that is more than 25 
percent below the sales price of the property, in the community in 
which the person is located, provided without any service.
	(b)  A civil penalty under this section is $100 for each 
violation.   
	SECTION 2.  This Act takes effect immediately 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 immediate effect, this 
Act takes effect September 1, 2005.