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A BILL TO BE ENTITLED
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AN ACT
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relating to the application of the sales and use tax to certain |
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property and services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.0028, Tax Code, is amended by |
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amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) "Amusement services" includes: |
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(1) membership in a private club or organization that |
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provides entertainment, recreational, sports, dining, or social |
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facilities to its members; and |
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(2) the purchase of an admission through the use of a |
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coin-operated machine. |
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(c) Notwithstanding Subsection (b), "amusement services" |
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does not include services provided through coin-operated machines |
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that are operated by the consumer. |
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SECTION 2. Section 151.0045, Tax Code, is amended to read as |
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follows: |
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Sec. 151.0045. "PERSONAL SERVICES". "Personal services" |
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means those personal services listed as personal services under |
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Group 721, Major Group 72 of the Standard Industrial Classification |
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Manual, 1972, and includes massage parlors, escort services, and |
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Turkish baths under Group 729 of said manual but does not include |
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any other services listed under Group 729 unless otherwise covered |
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under this chapter [Act], prepared by the statistical policy |
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division of the office on management and budget, office of the |
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president of the United States. The term does not include services |
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provided through coin-operated machines that are operated by the |
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consumer. |
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SECTION 3. Section 151.006, Tax Code, is amended by |
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amending Subsections (a) and (c) and adding Subsection (e) to read |
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as follows: |
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(a) "Sale for resale" means a sale of: |
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(1) tangible personal property or a taxable service to |
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a purchaser who acquires the property or service for the purpose of |
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reselling it [with or] as a taxable item as defined by Section |
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151.010 in the United States of America or a possession or territory |
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of the United States of America or in the United Mexican States in |
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the normal course of business in the form or condition in which it |
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is acquired or as an attachment to or integral part of other |
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tangible personal property or taxable service; |
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(2) tangible personal property to a purchaser for the |
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sole purpose of the purchaser's leasing or renting it in the United |
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States of America or a possession or territory of the United States |
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of America or in the United Mexican States in the normal course of |
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business to another person, but not if incidental to the leasing or |
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renting of real estate; |
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(3) tangible personal property to a purchaser who |
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acquires the property for the purpose of transferring it in the |
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United States of America or a possession or territory of the United |
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States of America or in the United Mexican States as an integral |
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part of a taxable service; |
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(4) a taxable service performed on tangible personal |
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property that is held for sale by the purchaser of the taxable |
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service; or |
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(5) except as provided by Subsection (c), tangible |
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personal property to a purchaser who acquires the property for the |
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purpose of transferring it as an integral part of performing a |
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contract, or a subcontract of a contract, with an entity or |
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organization exempted from the taxes imposed by this chapter under |
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Section 151.309 or 151.310 [the federal government] only if the |
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purchaser: |
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(A) allocates and bills to the contract the cost |
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of the property as a direct or indirect cost; and |
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(B) transfers title to the property to the exempt |
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entity or organization [federal government] under the contract and |
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applicable [federal] acquisition regulations. |
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(c) A sale for resale does not include the sale of tangible |
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personal property or a taxable service to a purchaser who acquires |
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the property or service for the purpose of performing a contract, or |
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a subcontract of a contract, with an entity or organization |
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exempted from the taxes imposed by this chapter under Section |
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151.309 or 151.310 [service that is not taxed under this chapter], |
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regardless of whether title transfers to the service provider's |
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customer, unless the tangible personal property or taxable service |
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is purchased for the purpose of reselling it to the United States in |
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a contract, or a subcontract of a contract, with any branch of the |
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Department of Defense, Department of Homeland Security, Department |
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of Energy, National Aeronautics and Space Administration, Central |
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Intelligence Agency, National Security Agency, National Oceanic |
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and Atmospheric Administration, or National Reconnaissance Office |
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to the extent allocated and billed to the contract with the federal |
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government. |
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(e) A sale for resale does not include the sale of tangible |
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personal property that will be used, consumed, or expended in, or |
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incorporated into, an oil or gas well by a purchaser who acquires |
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the property to perform an oil well service taxable under Chapter |
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191. |
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SECTION 4. Section 151.338, Tax Code, is amended to read as |
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follows: |
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Sec. 151.338. ENVIRONMENT AND CONSERVATION SERVICES. (a) |
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Subject to Subsection (b), labor to [The services involved in the] |
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repair, remodel, maintain, or restore [remodeling, maintenance, or
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restoration of] tangible personal property is exempted from the |
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taxes imposed by [are not taxable under] this chapter if: |
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(1) the amount of the charge for labor is separately |
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itemized; and |
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(2) the repair, remodeling, maintenance, or |
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restoration is required by statute, ordinance, order, rule, or |
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regulation of any commission, agency, court, or political, |
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governmental, or quasi-governmental entity in order to protect the |
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environment or to conserve energy. |
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(b) The exemption provided by this section does not apply to |
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tangible personal property transferred by the service provider to |
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the purchaser as part of the service. |
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SECTION 5. Section 151.335, Tax Code, is repealed. |
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SECTION 6. The changes in law made by this Act do not affect |
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tax liability accruing before the effective date of this Act. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for civil and criminal enforcement of the liability |
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for those taxes. |
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SECTION 7. This Act takes effect October 1, 2017. |