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A BILL TO BE ENTITLED
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AN ACT
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relating to the imposition of the sales and use tax on taxable items |
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sold or provided under certain contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 151.0565(a)(1) and (2), Tax Code, are |
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amended to read as follows: |
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(1) "Destination management services" means the |
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following services when provided under a qualified destination |
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management services contract: |
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(A) transportation vehicle management; |
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(B) booking and managing entertainers; |
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(C) coordination of tours or recreational |
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activities; |
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(D) meeting, conference, or event registration; |
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(E) meeting, conference, transportation, or |
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event staffing; |
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(F) event management; [and] |
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(G) meal coordination; |
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(H) shuttle system services, including vehicle |
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staging, radio communications, signage, and routing services; and |
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(I) airport meet-and-greet services, including |
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the provision of airport permits, manifest management services, |
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porterage, and passenger greeting services. |
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(2) "Qualified destination management company" means |
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a business entity that: |
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(A) is incorporated or is a limited liability |
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company; |
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(B) receives at least 80 percent of the entity's |
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annual total revenue from providing or arranging for the provision |
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of destination management services; |
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(C) maintains a permanent nonresidential office |
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from which the destination management services are provided or |
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arranged; |
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(D) has at least three full-time employees; |
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(E) maintains a general liability insurance |
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policy with a limit of at least $1 million [spends at least one
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percent of the entity's annual gross receipts to market the
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destinations with respect to which destination management services
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are provided]; |
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(F) has at least 80 percent of the entity's |
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clients [described by Subdivision (3)(A)] located outside this |
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state; |
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(G) other than office equipment used in the |
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conduct of the entity's business, does not own equipment used to |
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directly provide destination management services, including motor |
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coaches, limousines, sedans, dance floors, decorative props, |
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lighting, podiums, sound or video equipment, or equipment for |
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catered meals; |
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(H) does not prepare or serve beverages, meals, |
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or other food products, but may procure catering services on behalf |
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of the entity's clients [is not doing business as a caterer]; |
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(I) does not provide services for weddings; |
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(J) does not own or operate a venue at which |
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events or activities for which destination management services are |
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provided occur; and |
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(K) [is not a subsidiary of another entity that,
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and] is not a member of an affiliated group, as that term is defined |
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by Section 171.0001, another member of which: |
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(i) prepares or serves beverages, meals, or |
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other food products [is doing business as, or owns or operates
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another entity doing business as, a caterer]; or |
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(ii) owns or operates a venue described by |
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Paragraph (J). |
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SECTION 2. 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 3. This Act takes effect September 1, 2013. |
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