82R7090 MXM-D

By: Hilderbran H.B. No. 264

A BILL TO BE ENTITLED

AN ACT

relating to the use of customs brokers to obtain a refund of sales and use taxes and to the retention of the $1 million total revenue exemption for the franchise tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 111.00455(b), Tax Code, is amended to read as follows:

(b) The following are not contested cases under Subsection (a) and Section 2003.101, Government Code:

(1) a show cause hearing or any hearing not related to the collection, receipt, administration, or enforcement of the amount of a tax or fee imposed, or the penalty or interest associated with that amount, except for a hearing under Section [151.157(f), 151.1575(c), 151.712(g),] 154.1142[,] or 155.0592;

(2) a property value study hearing under Subchapter M, Chapter 403, Government Code;

(3) a hearing in which the issue relates to:

(A) Chapters 72-75, Property Code;

(B) forfeiture of a right to do business;

(C) a certificate of authority;

(D) articles of incorporation;

(E) a penalty imposed under Section 151.7031;

(F) the refusal or failure to settle under Section 111.101; or

(G) a request for or revocation of an exemption from taxation; and

(4) any other hearing not related to the collection, receipt, administration, or enforcement of the amount of a tax or fee imposed, or the penalty or interest associated with that amount.

SECTION 2. Section 151.307(b), Tax Code, is amended to read as follows:

(b) When an exemption is claimed because tangible personal property is exported beyond the territorial limits of the United States, proof of export may be shown only by:

(1) a bill of lading issued by a licensed and certificated carrier of persons or property showing the seller as consignor, the buyer as consignee, and a delivery point outside the territorial limits of the United States;

(2) [documentation:

[(A) provided by a United States Customs Broker licensed by the comptroller under Section 151.157;

[(B) certifying that delivery was made to a point outside the territorial limits of the United States;

[(C) that includes, in addition to any other information required by the comptroller, a statement signed by the person claiming the exemption that states that "Providing false information to a customs broker is a Class B misdemeanor."; and

[(D) to which a stamp issued under Section 151.158 is affixed in the manner required by that section or Section 151.157;

[(3)] import documents from the country of destination showing that the property was imported into a country other than the United States;

(3) [(4)] an original airway, ocean, or railroad bill of lading and a forwarder's receipt if an air, ocean, or rail freight forwarder takes possession of the property; or

(4) [(5)] any other manner provided by the comptroller for an enterprise authorized to make tax-free purchases under Section 151.156.

SECTION 3. Section 151.406(a), Tax Code, is amended to read as follows:

(a) Except as provided by Section 151.407, a tax report required by this chapter must:

(1) for sales tax purposes, show the amount of the total receipts of a seller for the reporting period;

(2) for use tax purposes, show the amount of the total receipts from sales by a retailer of taxable items during the reporting period for storage, use, or consumption in this state;

(3) show the amount of the total sales prices of taxable items that are subject to the use tax during the reporting period and that were acquired for storage, use, or consumption in this state by a purchaser who did not pay the tax to a retailer;

(4) show the amount of the taxes due for the reporting period; and

(5) [show the amount of sales tax refunded for items exported beyond the territorial limits of the United States after receiving documentation under Section 151.307(b)(2); and

[(6)] include other information that the comptroller determines to be necessary for the proper administration of this chapter.

SECTION 4. The following provisions of the Tax Code are repealed:

(1) Section 151.157;

(2) Section 151.1575;

(3) Section 151.158;

(4) Section 151.159;

(5) Sections 151.307(c), (d), and (e);

(6) Section 151.712; and

(7) Section 151.713.

SECTION 5. Section 1(c), Chapter 286 (H.B. 4765), Acts of the 81st Legislature, Regular Session, 2009, is repealed.

SECTION 6. Section 2, Chapter 286 (H.B. 4765), Acts of the 81st Legislature, Regular Session, 2009, which amended former Subsection (d), Section 171.002, Tax Code, is repealed.

SECTION 7. Section 3, Chapter 286 (H.B. 4765), Acts of the 81st Legislature, Regular Session, 2009, which amended former Subsection (a), Section 171.0021, Tax Code, is repealed.

SECTION 8. Section 171.0021, Tax Code, is repealed.

SECTION 9. Section 171.1016(d), Tax Code, is repealed.

SECTION 10. The change in law made by this Act does not affect taxes imposed before the effective date of this Act. Taxes imposed before the effective date of this Act are governed by the law in effect when the taxes were imposed, and that law is continued in effect for purposes of the liability for and collection of those taxes.

SECTION 11. (a) Except as provided by Subsection (b) of this section, 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, 2011.

(b) Sections 1 through 4 of this Act take effect October 1, 2011.