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A BILL TO BE ENTITLED
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AN ACT
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relating to the computation of taxable margin for purposes of the |
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franchise tax by a taxable entity principally engaged in Internet |
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hosting. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.0001, Tax Code, is amended by adding |
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Subdivision (9-a) to read as follows: |
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(9-a) "Internet hosting" means providing for |
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consideration to an unrelated user access over the Internet to |
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computer servers on which the users process the users' own data and |
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that are owned or leased and managed by the provider, and that are |
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located in a remote, secure data center that is owned or leased by |
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the provider. The term does not include telecommunications |
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services. For purposes of this subdivision, a computer server is |
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managed by the entity that provides, under contract with the user: |
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(A) the operating system license and |
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installation and maintenance for the server; |
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(B) redundant electric power for the server and |
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for the secure data center; |
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(C) redundant Internet access for the server; and |
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(D) hardware maintenance for the server. |
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SECTION 2. Section 171.106, Tax Code, is amended by adding |
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Subsections (g) and (h) to read as follows: |
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(g) For a taxable entity receiving more than 75 percent of |
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its total revenue from Internet hosting, a receipt from Internet |
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hosting is a receipt from business done in this state if the |
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customer to whom the service is provided is located in this state. |
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Except as provided by Subsection (h), this subsection takes effect |
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for reports due on or after January 1, 2015. |
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(h) On or before December 1 of each year, the comptroller |
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shall evaluate the statewide fiscal impact of the implementation of |
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Subsection (g). If after an evaluation the comptroller determines |
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that implementation of Subsection (g) will not have a negative |
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fiscal impact on this state, Subsection (g) takes effect for each |
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report originally due on or after January 1 of the year following |
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the year in which the comptroller makes that determination. This |
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subsection expires December 2, 2013. |
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SECTION 3. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2009. |