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A BILL TO BE ENTITLED
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AN ACT
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relating to a sales and use tax exemption for tangible personal |
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property used to provide cable television service, Internet access |
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service, or telecommunications services and to the exclusion of |
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that property in certain economic development agreements. |
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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 151.3186 to read as follows: |
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Sec. 151.3186. PROPERTY USED IN CABLE TELEVISION, INTERNET |
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ACCESS, OR TELECOMMUNICATIONS SERVICES. (a) In this section, |
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"provider" means a provider of cable television service, Internet |
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access service, or telecommunications services. |
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(b) The sale, lease, or rental or storage, use, or other |
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consumption of tangible personal property is exempted from the |
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taxes imposed by this chapter if: |
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(1) the property is sold, leased, or rented to or |
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stored, used, or consumed by a provider or a subsidiary of a |
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provider; and |
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(2) the property is directly used or consumed by the |
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provider or subsidiary described by Subdivision (1) in or during: |
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(A) the distribution of cable television |
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service; |
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(B) the provision of Internet access service; or |
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(C) the transmission, conveyance, routing or |
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reception of telecommunications services. |
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(c) The sale, lease, or rental or storage, use, or other |
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consumption of tangible personal property is not exempted from the |
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taxes imposed by this chapter if the property is directly used or |
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consumed in or during the provision, creation, or production of |
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data processing or information services as defined in this chapter. |
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SECTION 2. Section 313.021(2), Tax Code, is amended to read |
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as follows: |
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(2) "Qualified property" means: |
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(A) land: |
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(i) that is located in an area designated as |
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a reinvestment zone under Chapter 311 or 312 or as an enterprise |
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zone under Chapter 2303, Government Code; |
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(ii) on which a person proposes to |
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construct a new building or erect or affix a new improvement that |
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does not exist before the date the person applies for a limitation |
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on appraised value under this subchapter; |
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(iii) that is not subject to a tax abatement |
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agreement entered into by a school district under Chapter 312; and |
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(iv) on which, in connection with the new |
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building or new improvement described by Subparagraph (ii), the |
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owner or lessee of, or the holder of another possessory interest in, |
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the land proposes to: |
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(a) make a qualified investment in an |
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amount equal to at least the minimum amount required by Section |
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313.023; and |
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(b) create at least 25 new jobs; |
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(B) the new building or other new improvement |
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described by Paragraph (A)(ii); and |
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(C) tangible personal property [that]: |
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(i) that is not subject to a tax abatement |
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agreement entered into by a school district under Chapter 312; |
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[and] |
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(ii) for which a sales and use tax exemption |
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is not claimed under Section 151.3186; and |
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(iii) except for new equipment described in |
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Section 151.318(q) or (q-1), that is first placed in service in the |
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new building or in or on the new improvement described by Paragraph |
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(A)(ii), or on the land on which that new building or new |
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improvement is located, if the personal property is ancillary and |
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necessary to the business conducted in that new building or in or on |
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that new improvement. |
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SECTION 3. 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 4. This Act takes effect September 1, 2013. |