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A BILL TO BE ENTITLED
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AN ACT
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relating to the application of the sales and use tax to the transfer |
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of certain tangible personal property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) Section 151.006, Tax Code, is amended to |
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read as follows: |
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Sec. 151.006. "SALE FOR RESALE". (a) "Sale for resale" |
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means a sale of: |
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(1) tangible personal property or a taxable service to |
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a purchaser who acquires the property or service for the purpose of |
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reselling it in the United States of America or a possession or |
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territory of the United States of America or in the United Mexican |
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States in the normal course of business in the form or condition in |
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which it is acquired or as an attachment to or integral part of |
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other tangible personal property or taxable service; |
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(2) tangible personal property to a purchaser for the |
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sole purpose of the purchaser's leasing or renting it in the United |
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States of America or a possession or territory of the United States |
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of America or in the United Mexican States in the normal course of |
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business to another person, but not if incidental to the leasing or |
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renting of real estate; |
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(3) tangible personal property to a purchaser who |
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acquires the property for the purpose of transferring it in the |
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United States of America or a possession or territory of the United |
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States of America or in the United Mexican States as an integral |
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part of a taxable service; or |
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(4) a taxable service performed on tangible personal |
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property that is held for sale by the purchaser of the taxable |
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service. |
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(b) Subsection (a)(3) applies to a transfer of tangible |
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personal property as an integral part of a taxable service, |
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regardless of whether there is a separate charge for the tangible |
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personal property or whether the purchaser is the provider of the |
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taxable service, if payment for the service is a condition for |
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receiving the tangible personal property. |
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SECTION 2. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 3. This Act takes effect July 1, 2007, if this Act |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for effect on that |
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date, this Act takes effect September 1, 2007. |