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A BILL TO BE ENTITLED
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AN ACT
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relating to the rate of the state sales tax on direct broadcast |
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satellite service. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.0033 is amended to read as follows: |
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Sec. 151.0033. "CABLE TELEVISION SERVICE". "Cable |
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television service" means the distribution of video programming |
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with or without use of wires to subscribing or paying customers, |
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except that the term does not include direct broadcast satellite |
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service. |
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SECTION 2. Subchapter A, Chapter 151, Tax Code, is amended |
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by adding Section 151.0037 to read as follows: |
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Sec. 151.0037. "DIRECT BROADCAST SATELLITE SERVICE". |
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"Direct broadcast satellite service" means the distribution or |
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broadcasting of video programming or services by satellite directly |
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to a subscriber's or paying customer's receiving equipment. The |
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term includes: |
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(1) the rental of receiving equipment used by the |
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subscriber or paying customer to obtain the service; |
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(2) the provision of premium channels; and |
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(3) the installation or repair of receiving equipment |
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used by the subscriber or paying customer to obtain the service. |
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SECTION 3. Section 151.0101(a), Tax Code, is amended to |
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read as follows: |
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(a) "Taxable services" means: |
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(1) amusement services; |
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(2) cable television services; |
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(3) personal services; |
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(4) motor vehicle parking and storage services; |
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(5) the repair, remodeling, maintenance, and |
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restoration of tangible personal property, except: |
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(A) aircraft; |
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(B) a ship, boat, or other vessel, other than: |
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(i) a taxable boat or motor as defined by |
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Section 160.001; |
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(ii) a sports fishing boat; or |
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(iii) any other vessel used for pleasure; |
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(C) the repair, maintenance, and restoration of a |
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motor vehicle; and |
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(D) the repair, maintenance, creation, and |
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restoration of a computer program, including its development and |
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modification, not sold by the person performing the repair, |
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maintenance, creation, or restoration service; |
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(6) telecommunications services; |
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(7) credit reporting services; |
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(8) debt collection services; |
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(9) insurance services; |
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(10) information services; |
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(11) real property services; |
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(12) data processing services; |
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(13) real property repair and remodeling; |
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(14) security services; |
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(15) telephone answering services; |
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(16) Internet access service; |
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(17) direct broadcast satellite service; and |
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(18) [(17)] a sale by a transmission and distribution |
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utility, as defined in Section 31.002, Utilities Code, of |
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transmission or delivery of service directly to an electricity |
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end-use customer whose consumption of electricity is subject to |
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taxation under this chapter. |
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SECTION 4. Section 151.051, Tax Code is amended by adding |
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Subsection (c) to read as follows: |
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(c) An additional tax is imposed on the sale of direct |
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broadcast satellite service in an incorporated area. The sales tax |
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rate for the additional tax is 7 percent of the sales price of the |
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direct broadcast satellite service provided in an incorporated |
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area. |
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SECTION 5. This Act takes effect October 1, 2009, and |
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applies to the sale of direct broadcast satellite services, as |
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defined by this Act, on or after that date. The sale of direct |
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broadcast satellite services, as defined by this Act, before the |
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effective date of this Act is governed by the law in effect at the |
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time of the transaction, and that law is continued in effect for the |
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enforcement and collection of those taxes. |