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A BILL TO BE ENTITLED
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AN ACT
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relating to exempting the sale of certain property used for |
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research and development from the sales tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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by adding Section 151.3182 to read as follows: |
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Sec. 151.3182. EQUIPMENT USED IN RESEARCH OR DEVELOPMENT. |
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(a) In this section, "manufacturing" has the meaning assigned by |
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Section 151.318. |
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(b) Except as provided by Subsections (d) and (f), the sale, |
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use, or other consumption of tangible personal property is exempted |
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from the taxes imposed by this chapter and a taxpayer may claim a |
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credit or refund as provided by Subsections (e) and (f) if the |
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tangible personal property is used directly in the research or |
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development of inventions, products, processes, or technology by a |
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person who is primarily engaged in: |
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(1) the manufacturing, processing, or fabrication of |
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tangible personal property for ultimate sale; |
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(2) the provision of telecommunications services; or |
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(3) the performance of scientific or technical |
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services for a person primarily engaged in an activity described by |
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Subdivision (1) or (2). |
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(c) This section applies to tangible personal property used |
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or consumed in research or development by persons primarily engaged |
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in manufacturing or the provision of telecommunications services |
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regardless of whether the tangible personal property: |
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(1) is used or consumed in the actual manufacturing, |
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processing, or fabrication of tangible personal property for |
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ultimate sale; or |
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(2) is directly used in the provision of |
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telecommunications services. |
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(d) 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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(e) Subject to Subsection (f), a taxpayer who pays tax on |
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tangible personal property exempted under this section is entitled |
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to either a credit of the amount paid against taxes owed under this |
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chapter or a refund of the amount paid. A taxpayer who elects a |
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credit must claim the credit on the return for a period that ends |
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not later than the first anniversary of the date on which the tax on |
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the item was paid. A taxpayer who elects a refund must apply to the |
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comptroller for the refund before or during the calendar year |
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following the year in which the tax on the item was paid. |
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(f) If the taxable event relating to tangible personal |
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property exempted under Subsection (b) occurs before September 1, |
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2017, the taxpayer must pay the tax on the property and apply for a |
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credit or refund. The exemption provided by Subsection (b) and the |
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amount of the credit or refund to which the person is entitled is |
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determined as follows: |
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(1) for tangible personal property for which the |
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taxable event occurred on or after September 1, 2013, and before |
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September 1, 2014, the taxpayer is entitled to a credit or refund in |
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an amount equal to 20 percent of the tax paid on the property; |
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(2) for tangible personal property for which the |
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taxable event occurred on or after September 1, 2014, and before |
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September 1, 2015, the taxpayer is entitled to a credit or refund in |
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an amount equal to 40 percent of the tax paid on the property; |
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(3) for tangible personal property for which the |
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taxable event occurred on or after September 1, 2015, and before |
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September 1, 2016, the taxpayer is entitled to a credit or refund in |
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an amount equal to 60 percent of the tax paid on the property; and |
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(4) for tangible personal property for which the |
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taxable event occurred on or after September 1, 2016, and before |
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September 1, 2017, the taxpayer is entitled to a credit or refund in |
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an amount equal to 80 percent of the tax paid on the property. |
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SECTION 2. The changes in law made by this Act do not affect |
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tax liability accruing before the effective date of this Act. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for civil and criminal enforcement of the liability |
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for those taxes. |
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SECTION 3. This Act takes effect September 1, 2013. |