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A BILL TO BE ENTITLED
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AN ACT
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relating to the rate and amount of the sales and use taxes imposed |
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on certain equipment sold, leased, or used by certain data centers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.051(b), Tax Code, is amended to read |
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as follows: |
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(b) Except as provided by Section 151.0516, the [The] sales |
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tax rate is 6-1/4 percent of the sales price of the taxable item |
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sold. |
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SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended |
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by adding Section 151.0516 to read as follows: |
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Sec. 151.0516. CERTAIN TANGIBLE PERSONAL PROPERTY SOLD TO |
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QUALIFIED DATA CENTERS. (a) In this section: |
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(1) "County average weekly wage" means the average |
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weekly wage in a county for all jobs during the most recent four |
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quarterly periods for which data is available, as computed by the |
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Texas Workforce Commission, at the time a data center creates a job |
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used to qualify under this section. |
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(2) "Data center" means a facility: |
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(A) located in this state; |
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(B) composed of one or more buildings |
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specifically constructed or refurbished and actually used |
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primarily to house servers and related equipment and support staff; |
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and |
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(C) that has an uninterruptible power source, a |
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generator backup power, a sophisticated fire suppression and |
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prevention system, and enhanced physical security that includes |
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restricted access, permanent security guards, video surveillance, |
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and electronic systems. |
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(3) "Permanent job" means an employment position that |
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will exist for at least five years after the date the job is |
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created. |
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(4) "Qualifying data center" means a data center that |
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meets the qualifications prescribed by Subsection (e). |
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(5) "Qualifying job" means a full-time, permanent job |
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that pays at least 150 percent of the county average weekly wage in |
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the county in which the job is based. |
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(b) Except as provided by Subsections (c) and (d), the sales |
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tax rate is one percent of the sales price of tangible personal |
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property purchased by a qualifying data center that is necessary to |
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manage or operate the data center, including: |
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(1) electricity; |
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(2) an electrical system; |
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(3) a cooling system; |
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(4) an emergency generator; |
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(5) hardware or a distributed mainframe computer or |
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server; |
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(6) a data storage device; |
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(7) network connectivity equipment; |
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(8) a peripheral component or system; and |
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(9) a component part of tangible personal property |
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described by Subdivisions (2)-(8). |
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(c) This section does not apply to: |
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(1) office equipment or supplies; or |
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(2) equipment or supplies used in sales or |
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distribution activities or in transportation activities. |
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(d) Notwithstanding any other law, the amount of tax imposed |
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under this chapter on the sale of each item of tangible personal |
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property to which this section applies may not exceed $80. |
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(e) A data center is entitled to purchase tangible personal |
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property at the rate and subject to the limitation authorized by |
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this section only if: |
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(1) the data center creates at least 25 qualifying |
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jobs in the county in which the data center is located; |
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(2) the data center agrees to invest at least $150 |
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million in this state over a five-year period after initial |
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construction of the data center facility; and |
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(3) the data center facility is designed, constructed |
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or refurbished, and operated so that the facility obtains |
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certification under the Leadership in Energy and Environmental |
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Design (LEED) Green Building Rating System. |
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(f) A qualifying data center is entitled to purchase |
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tangible personal property at the rate and subject to the |
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limitation authorized by this section beginning on the date the |
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center makes the initial investment described by Subsection (e)(2) |
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and ending on the 10th anniversary of that date. |
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(g) The comptroller shall adopt rules necessary to |
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implement this section, including rules relating to the: |
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(1) qualification of a data center under this section; |
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(2) determination of the date a data center initially |
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qualifies for the entitlement to purchase tangible personal |
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property at the rate and subject to the limitation authorized by |
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this section; and |
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(3) reporting and other procedures necessary to ensure |
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that the qualifying data center complies with this section and |
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remains entitled to purchase tangible personal property at the rate |
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and subject to the limitation authorized by this section. |
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SECTION 3. Section 151.101(b), Tax Code, is amended to read |
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as follows: |
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(b) The tax is at the same percentage rate as is provided by |
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Section 151.051 [of this code] on the sales price of the taxable |
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item or, as applicable, at the same percentage rate and limitation |
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as is provided by Section 151.0516 on the sales price of tangible |
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personal property subject to that section. |
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SECTION 4. Subchapter C, Chapter 321, Tax Code, is amended |
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by adding Section 321.2075 to read as follows: |
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Sec. 321.2075. LOCAL TAX INAPPLICABLE TO TANGIBLE PERSONAL |
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PROPERTY TO WHICH SECTION 151.0516 APPLIES. The taxes imposed by |
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this chapter do not apply to the sale, storage, use, or other |
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consumption of tangible personal property if the sale, storage, |
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use, or other consumption of the property is subject to the rate and |
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limitation authorized by Section 151.0516. |
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SECTION 5. Subchapter B, Chapter 322, Tax Code, is amended |
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by adding Section 322.1065 to read as follows: |
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Sec. 322.1065. LOCAL TAX INAPPLICABLE TO TANGIBLE PERSONAL |
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PROPERTY TO WHICH SECTION 151.0516 APPLIES. The taxes imposed by |
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this chapter do not apply to the sale, storage, use, or other |
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consumption of tangible personal property if the sale, storage, |
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use, or other consumption of the property is subject to the rate and |
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limitation authorized by Section 151.0516. |
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SECTION 6. Subchapter C, Chapter 323, Tax Code, is amended |
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by adding Section 323.2065 to read as follows: |
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Sec. 323.2065. LOCAL TAX INAPPLICABLE TO TANGIBLE PERSONAL |
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PROPERTY TO WHICH SECTION 151.0516 APPLIES. The taxes imposed by |
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this chapter do not apply to the sale, storage, use, or other |
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consumption of tangible personal property if the sale, storage, |
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use, or other consumption of the property is subject to the rate and |
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limitation authorized by Section 151.0516. |
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SECTION 7. 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 8. This Act takes effect September 1, 2011. |