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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 certain disabled |
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veterans and surviving spouses of certain disabled veterans. |
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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 151.360 to read as follows: |
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Sec. 151.360. PURCHASES BY CERTAIN DISABLED VETERANS OR |
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SURVIVING SPOUSES. (a) A taxable item sold, leased, or rented to, |
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or stored, used, or consumed by, any of the following persons is |
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exempted from the taxes imposed by this chapter: |
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(1) a person who holds a registration number issued |
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under this section; or |
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(2) a member of the household where a person described |
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by Subdivision (1) resides, if the purchase, lease, rental, or |
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other consumption is for the benefit of the person, and if the |
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household member is authorized to make purchases on the person's |
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behalf. |
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(b) To claim an exemption under Subsection (a), the |
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purchaser must state a registration number issued by the |
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comptroller under this section on the exemption certificate |
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provided by the purchaser of the item. |
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(c) A person is eligible to receive a registration number |
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if: |
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(1) the person: |
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(A) is a resident of this state; |
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(B) enlisted in any branch of the armed forces of |
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the United States, including the Texas National Guard, and received |
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an honorable discharge; and |
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(C) has been certified by the United States |
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Department of Veterans Affairs or its successor to be in receipt of |
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disability compensation at the 100 percent rate as a result of a |
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permanent disability that: |
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(i) was sustained through military action |
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or accident; or |
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(ii) resulted from disease contracted while |
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in active service; or |
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(2) the person is the surviving spouse of a person |
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described by Subdivision (1), the person described by Subdivision |
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(1) is deceased, and the surviving spouse is not remarried. |
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(d) A person who is eligible for a registration number under |
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Subsection (c) may apply to the comptroller for the number. The |
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application must: |
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(1) be on a form prescribed by the comptroller; and |
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(2) contain any other information required by the |
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comptroller. |
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(e) The comptroller shall develop and implement a procedure |
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by which an applicant may submit an application described by |
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Subsection (d) electronically. |
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(f) The comptroller by rule shall establish a uniform date |
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on which all registration numbers issued under this section must be |
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renewed, regardless of the date on which a registration number is |
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initially issued. The rules must require registration numbers to |
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be renewed every four years. |
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(g) The comptroller may not issue a registration number that |
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contains the applicant's social security number. |
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(h) The comptroller, after written notice and a hearing, may |
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revoke the registration number issued to a person who fails to |
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comply with this chapter or a rule adopted under this chapter, or |
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who is no longer eligible for a registration number. A person whose |
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registration number the comptroller proposes to revoke under this |
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section is entitled to 20 days' written notice of the time and place |
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of the hearing on the revocation. The notice must state the reason |
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the comptroller is seeking to revoke the person's registration |
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number. At the hearing the person must show cause why the person's |
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registration number should not be revoked. |
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(i) The comptroller shall give written notice of the |
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revocation of a registration number under Subsection (h) to the |
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person to whom the number was issued. The notice may be personally |
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served on the person or sent by mail to the person's address as |
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shown in the comptroller's records. |
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(j) If the comptroller revokes a person's registration |
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number under Subsection (h), the comptroller may not revive the |
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registration number unless the comptroller is satisfied that the |
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person will comply with this chapter and the rules adopted under |
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this chapter. The comptroller may prescribe the terms under which a |
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revoked registration number may be revived. |
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(k) Following the revocation of a registration number by the |
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comptroller, the person who held the registration number must, on |
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the next transaction with a seller to whom the person previously |
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provided an exemption certificate with a registration number, |
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notify that seller that the person's registration number is no |
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longer valid. The failure of a person to notify a seller as |
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required by this subsection is considered a failure and refusal to |
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pay the taxes imposed by this chapter by the person required to make |
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the notification. |
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(l) The comptroller shall develop and operate an online |
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system to enable a seller to search and verify the validity of the |
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registration number stated on an exemption certificate. A seller |
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is not required to use the online system. |
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(m) An exemption certificate that states a registration |
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number issued by the comptroller to claim an exemption to which this |
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section applies is sufficient documentation of the seller's receipt |
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of the certificate in good faith for purposes of Sections 151.054 |
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and 151.104. |
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(n) The comptroller by rule shall establish procedures by |
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which a seller may accept a blanket exemption certificate with a |
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registration number issued by the comptroller to claim exemptions |
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under this section. |
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(o) A person eligible for a registration number who, at the |
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time of purchasing, leasing, renting, or otherwise consuming an |
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item for which the person may otherwise claim an exemption, has not |
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obtained a registration number from the comptroller must pay the |
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tax on the item to the seller at the time of the transaction. The |
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person may then apply for a registration number and, on receipt of |
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the number, may apply to the comptroller for a refund of the tax |
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paid, subject to the statute of limitations. The comptroller by |
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rule shall establish procedures for processing the refund requests. |
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Tax collected by a seller as described by this subsection is not tax |
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collected in error, and Section 111.104 does not apply to a refund |
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request submitted under this subsection. |
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(p) The comptroller may adopt rules to implement this |
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section. |
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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, 2017. |