83R12582 E

By: Hilderbran H.B. No. 3571

A BILL TO BE ENTITLED

AN ACT

relating to taxes administered by the comptroller of public accounts; raising and lowering the rates of certain taxes.

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

SECTION 1. Section 111.002(b), Tax Code, is amended to read as follows:

(b) A person who does not comply with a rule made under this section forfeits to the state an amount of not less than $50 [$25] nor more than $500. Each day on which a failure to comply occurs or continues is a separate violation.

SECTION 2. Section 111.004(d), Tax Code, is amended to read as follows:

(d) The comptroller's authority to examine books, records, and papers under this chapter extends to all books, records, papers, and other objects, regardless of electronic or physical form, which the comptroller determines are necessary for conducting a complete examination under this title.

SECTION 3. Section 151.319(f), Tax Code, is amended to read as follows:

(f) In this section, "newspaper" means a publication that is printed on newsprint, the average sales price of which for each copy over a 30-day period does not exceed $3.00 [$1.50], and that is printed and distributed at a daily, weekly, or other short interval for the dissemination of news of a general character and of a general interest. "Newspaper" does not include a magazine, handbill, circular, flyer, sales catalog, or similar printed item unless the printed item is printed for distribution as a part of a newspaper and is actually distributed as a part of a newspaper. For the purposes of this section, an advertisement is news of a general character and of a general interest. Notwithstanding any other provision of this subsection, "newspaper" includes:

(1) a publication containing articles and essays of general interest by various writers and advertisements that is produced for the operator of a licensed and certified carrier of persons and distributed by the operator to its customers during their travel on the carrier; and

(2) a publication for the dissemination of news of a general character and of a general interest that is printed on newsprint and distributed to the general public free of charge at a daily, weekly, or other short interval.

SECTION 4. Section 151.333(b), Tax Code, is amended to read as follows:

(b) This section applies only to the following energy-efficient products:

(1) an air conditioner the sales price of which does not exceed $6,000;

(2) a clothes washer;

(3) a ceiling fan;

(4) a dehumidifier;

(5) a dishwasher;

(6) an incandescent, [or] fluorescent, or light-emitting diode lightbulb;

(7) a programmable thermostat; and

(8) a refrigerator the sales price of which does not exceed $2,500 [$2,000].

SECTION 5. Section 152.022, Tax Code, is amended by adding Subsection (c) to read as follows:

(c) The tax imposed by this section does not apply to a motor vehicle purchased at retail sale in a foreign country and used on the public highways of this state by an active duty member of the United States armed forces residing in this state on military orders.

SECTION 6. Section 152.023, Tax Code, is amended by adding Subsection (d) to read as follows:

(d) The tax imposed by this section does not apply to a motor vehicle described by Subsection (a) that:

(1) is brought into this state by an active duty member of the United States armed forces residing in this state on military orders; and

(2) was purchased, leased, or otherwise acquired in a foreign country by the active duty member while serving on active duty.

SECTION 7. Section 156.101, Tax Code, is amended to read as follows:

Sec. 156.101. EXCEPTION--PERMANENT RESIDENT. This chapter does not impose a tax on an individual [a person] who has the right to use or possess a room in a hotel for at least 30 consecutive days, so long as there is no interruption of payment for the period.

SECTION 8. Section 171.0001(12), Tax Code, is amended to read as follows:

(12) "Retail trade" means:

(A) the activities described in Division G of the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget; [and]

(B) apparel rental activities classified as Industry 5999 or 7299 of the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget; and

(C) rental-purchase agreement activities regulated by Chapter 92, Business & Commerce Code.

SECTION 9. Section 171.1011, Tax Code, is amended by amending Subsection (g) and adding Subsection (g-8) to read as follows:

(g) A taxable entity shall exclude from its total revenue, to the extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3), only the following flow-through funds that are mandated by contract to be distributed to other entities:

(1) sales commissions to nonemployees, including split-fee real estate commissions;

(2) the tax basis as determined under the Internal Revenue Code of securities underwritten; [and]

(3) subcontracting payments handled by the taxable entity to provide services, labor, or materials in connection with the actual or proposed design, construction, remodeling, or repair of improvements on real property or the location of the boundaries of real property; and

(4) subcontracting payments made to individuals for services related to the acquisition or management of petroleum interests or the performance of title or contract functions related to the exploration, exploitation, or disposition of petroleum or mineral interests.

(g-8) Subsection (g)(3) includes subcontracting payments handled by the taxable entity for the hauling or installing of base, sand, gravel, or aggregate in connection with the construction, remodeling, or repair of improvements on real property.

SECTION 10. Section 181.002, Tax Code, is amended to read as follows:

Sec. 181.002. RATE OF TAX. The rate of the tax imposed by this chapter is $0.035 [$0.0275] for each 100 pounds or fraction of 100 pounds of taxable cement.

SECTION 11. Section 191.086, Tax Code, is amended to read as follows:

Sec. 191.086. PENALTY. A person who violates this subchapter forfeits and shall pay to the state a penalty of not less than $50 [$25] nor more than $500. A separate offense is committed each day on which a violation occurs.

SECTION 12. Section 203.003, Tax Code, is amended to read as follows:

Sec. 203.003. RATE OF TAX. The tax imposed by this chapter is at the rate of $1 [$1.03] a long ton or fraction of a long ton of sulphur produced in this state.

SECTION 13. Section 321.209(b), Tax Code, is amended to read as follows:

(b) The taxpayer must give the comptroller notice of the contract or bid on which an exemption is to be claimed within 45 [60] days after the effective date of the tax imposed under Section 321.101(a) in the municipality.

SECTION 14. This Act takes effect January 1, 2014.