83R24777 ADM-F
 
  By: Deuell S.B. No. 997
 
  (Hughes)
 
  Substitute the following for S.B. No. 997:  No.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the sales and use tax consequences of economic
  development agreements made by certain municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 321.203, Tax Code, is amended by adding
  Subsections (c-4) and (c-5) to read as follows:
         (c-4)  Subsection (c) does not apply if:
               (1)  the taxable item is shipped or delivered from a
  warehouse:
                     (A)  located in a municipality with a population
  of 5,000 or less;
                     (B)  that is a place of business of the retailer;
                     (C)  in relation to which the retailer has an
  economic development agreement with the municipality that was
  entered into under Chapter 380, 504, or 505, Local Government Code,
  or a predecessor statute, before January 1, 2009; and
                     (D)  in relation to which the municipality
  provided information relating to the economic development
  agreement as required by Subsection (c-3), as that subsection
  existed immediately before its expiration; and
               (2)  the place of business of the retailer at which the
  retailer first receives the order in the manner described by
  Subsection (c) is a retail outlet identified in the information
  required by Subsection (c-3), as that subsection existed
  immediately before its expiration, as being served by the warehouse
  on January 1, 2009.
         (c-5)  This subsection and Subsection (c-4) expire September
  1, 2024.
         SECTION 2.  Section 323.203, Tax Code, is amended by adding
  Subsections (c-4) and (c-5) to read as follows:
         (c-4)  Subsection (c) does not apply if:
               (1)  the taxable item is shipped or delivered from a
  warehouse:
                     (A)  located in a municipality with a population
  of 5,000 or less;
                     (B)  that is a place of business of the retailer;
                     (C)  in relation to which the retailer has an
  economic development agreement with the municipality that was
  entered into under Chapter 380, 504, or 505, Local Government Code,
  or a predecessor statute, before January 1, 2009; and
                     (D)  in relation to which the municipality
  provided information relating to the economic development
  agreement as required by Section 321.203(c-3), as that subsection
  existed immediately before its expiration; and
               (2)  the place of business of the retailer at which the
  retailer first receives the order in the manner described by
  Subsection (c) is a retail outlet identified in the information
  required by Section 321.203(c-3), as that subsection existed
  immediately before its expiration, as being served by the warehouse
  on January 1, 2009.
         (c-5)  This subsection and Subsection (c-4) expire September
  1, 2024.
         SECTION 3.  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, 2013.