86R10430 SMT/CJC/GCB/JRR-D
 
  By: Springer H.B. No. 2915
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to state and local taxes and fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. PROVISIONS RELATED TO DECREASING PROPERTY TAX LIABILITY
         SECTION 1.01.  Section 42.2516(a), Education Code, is
  amended to read as follows:
         (a)  In this title, "state compression percentage" means the
  percentage of a school district's adopted maintenance and
  operations tax rate for the 2005 tax year that serves as the basis
  for state funding.  The compression percentage is the lower of:
               (1)  the following compression percentages, based on
  the district's maintenance and operations tax for the 2020 tax
  year:
                     (A)  if a district's maintenance and operations
  tax is equal to or greater than $1.00 per hundred dollars of
  valuation, 60 percent;
                     (B)  if a district's maintenance and operations
  tax is equal to or greater than $0.90 but less than $1.00 per
  hundred dollars of valuation, a compression percentage determined
  by the commissioner for that district that will compress the
  district's maintenance and operations tax to $0.90 per hundred
  dollars of valuation; or
                     (C)  if a district's maintenance and operations
  tax is $0.90 or less per hundred dollars of valuation, 66.67
  percent; or
               (2)  a compression percentage established by
  appropriation for a school year.  [If the state compression
  percentage is not established by appropriation for a school year,
  the commissioner shall determine the state compression percentage
  for each school year based on the percentage by which a district is
  able to reduce the district's maintenance and operations tax rate
  for that year, as compared to the district's adopted maintenance
  and operations tax rate for the 2005 tax year, as a result of state
  funds appropriated for that year from the property tax relief fund
  established under Section 403.109, Government Code, or from another
  funding source available for school district property tax relief.]
         SECTION 1.02.  Section 403.302(d), Government Code, is
  amended to read as follows:
         (d)  For the purposes of this section, "taxable value" means
  the market value of all taxable property less:
               (1)  the total dollar amount of any residence homestead
  exemptions lawfully granted under Section 11.13(b), [or] (c), or
  (s), Tax Code, in the year that is the subject of the study for each
  school district;
               (2)  one-half of the total dollar amount of any
  residence homestead exemptions granted under Section 11.13(n), Tax
  Code, in the year that is the subject of the study for each school
  district;
               (3)  the total dollar amount of any exemptions granted
  before May 31, 1993, within a reinvestment zone under agreements
  authorized by Chapter 312, Tax Code;
               (4)  subject to Subsection (e), the total dollar amount
  of any captured appraised value of property that:
                     (A)  is within a reinvestment zone created on or
  before May 31, 1999, or is proposed to be included within the
  boundaries of a reinvestment zone as the boundaries of the zone and
  the proposed portion of tax increment paid into the tax increment
  fund by a school district are described in a written notification
  provided by the municipality or the board of directors of the zone
  to the governing bodies of the other taxing units in the manner
  provided by former Section 311.003(e), Tax Code, before May 31,
  1999, and within the boundaries of the zone as those boundaries
  existed on September 1, 1999, including subsequent improvements to
  the property regardless of when made;
                     (B)  generates taxes paid into a tax increment
  fund created under Chapter 311, Tax Code, under a reinvestment zone
  financing plan approved under Section 311.011(d), Tax Code, on or
  before September 1, 1999; and
                     (C)  is eligible for tax increment financing under
  Chapter 311, Tax Code;
               (5)  the total dollar amount of any captured appraised
  value of property that:
                     (A)  is within a reinvestment zone:
                           (i)  created on or before December 31, 2008,
  by a municipality with a population of less than 18,000; and
                           (ii)  the project plan for which includes
  the alteration, remodeling, repair, or reconstruction of a
  structure that is included on the National Register of Historic
  Places and requires that a portion of the tax increment of the zone
  be used for the improvement or construction of related facilities
  or for affordable housing;
                     (B)  generates school district taxes that are paid
  into a tax increment fund created under Chapter 311, Tax Code; and
                     (C)  is eligible for tax increment financing under
  Chapter 311, Tax Code;
               (6)  the total dollar amount of any exemptions granted
  under Section 11.251 or 11.253, Tax Code;
               (7)  the difference between the comptroller's estimate
  of the market value and the productivity value of land that
  qualifies for appraisal on the basis of its productive capacity,
  except that the productivity value estimated by the comptroller may
  not exceed the fair market value of the land;
               (8)  the portion of the appraised value of residence
  homesteads of individuals who receive a tax limitation under
  Section 11.26, Tax Code, on which school district taxes are not
  imposed in the year that is the subject of the study, calculated as
  if the residence homesteads were appraised at the full value
  required by law;
               (9)  a portion of the market value of property not
  otherwise fully taxable by the district at market value because of:
                     (A)  action required by statute or the
  constitution of this state, other than Section 11.311, Tax Code,
  that, if the tax rate adopted by the district is applied to it,
  produces an amount equal to the difference between the tax that the
  district would have imposed on the property if the property were
  fully taxable at market value and the tax that the district is
  actually authorized to impose on the property, if this subsection
  does not otherwise require that portion to be deducted; or
                     (B)  action taken by the district under Subchapter
  B or C, Chapter 313, Tax Code, before the expiration of the
  subchapter;
               (10)  the market value of all tangible personal
  property, other than manufactured homes, owned by a family or
  individual and not held or used for the production of income;
               (11)  the appraised value of property the collection of
  delinquent taxes on which is deferred under Section 33.06, Tax
  Code;
               (12)  the portion of the appraised value of property
  the collection of delinquent taxes on which is deferred under
  Section 33.065, Tax Code; and
               (13)  the amount by which the market value of a
  residence homestead to which Section 23.23, Tax Code, applies
  exceeds the appraised value of that property as calculated under
  that section.
         SECTION 1.03.  Section 11.13, Tax Code, is amended by
  amending Subsection (i) and adding Subsections (s) and (t) to read
  as follows:
         (i)  The assessor and collector for a taxing unit may
  disregard the exemptions authorized by Subsection (b), (c), (d),
  [or] (n), or (s) [of this section] and assess and collect a tax
  pledged for payment of debt without deducting the amount of the
  exemption if:
               (1)  prior to adoption of the exemption, the unit
  pledged the taxes for the payment of a debt; and
               (2)  granting the exemption would impair the obligation
  of the contract creating the debt.
         (s)  In addition to any other exemptions provided by this
  section, an individual is entitled to an exemption from taxation by
  a school district of a portion of the appraised value of the
  individual's residence homestead in an amount equal to the lesser
  of:
               (1)  50 percent of the difference between:
                     (A)  the total appraised value of the individual's
  residence homestead; and
                     (B)  the total dollar amount of all other
  exemptions for which the individual qualifies the residence
  homestead under this section; or
               (2)  150 percent of the median appraised value of all
  single family residences in this state in the preceding year as
  determined by the comptroller under Subsection (t).
         (t)  Not later than January 1 of each year, the comptroller
  shall determine the median appraised value of all single-family
  residences in this state in the preceding year and publish that
  value in the Texas Register.
         SECTION 1.04.  Subchapter B, Chapter 11, Tax Code, is
  amended by adding Section 11.35 to read as follows:
         Sec. 11.35.  INVENTORY. (a)  In this section, "inventory"
  means:
               (1)  a finished good held for sale or resale; or
               (2)  a raw or finished material held to be incorporated
  into or attached to tangible personal property to create a finished
  good.
         (b)  A person is entitled to an exemption from taxation of
  the appraised value of the person's inventory.
         SECTION 1.05.  This article applies only to an ad valorem tax
  year that begins on or after the effective date of this Act.
  ARTICLE 2. PROVISIONS RELATED TO INCREASING STATE AND LOCAL REVENUE
         SECTION 2.01.  Subchapter A, Chapter 2301, Occupations Code,
  is amended by adding Section 2301.008 to read as follows:
         Sec. 2301.008.  ANNUAL REPORT ON WARRANTIES ISSUED FOR
  CERTAIN OFF-HIGHWAY VEHICLES PURCHASED OUTSIDE THIS STATE. (a) In
  this section:
               (1)  "Off-highway vehicle" has the meaning assigned by
  Section 501.0301, Transportation Code.
               (2)  "Retailer" has the meaning assigned by Section
  151.008, Tax Code.
         (b)  Not later than March 1 of each year, a manufacturer of
  off-highway vehicles shall submit to the department a report
  listing each warranty issued by the manufacturer for a new
  off-highway vehicle that was, during the preceding calendar year,
  sold to a resident of this state by a retailer located outside this
  state. The report must:
               (1)  be in a form prescribed by the department; and
               (2)  contain, at a minimum, the following information
  for each warranty:
                     (A)  the vehicle identification number of the
  vehicle;
                     (B)  the make, model, and model year of the
  vehicle;
                     (C)  the name and address of the purchaser of the
  vehicle; and
                     (D)  the sales price of the vehicle.
         (c)  The department shall:
               (1)  review each report submitted under this section to
  determine whether the report is complete; and
               (2)  require a manufacturer to submit any additional
  information necessary to meet the requirements of this section if
  the department determines that the report submitted by the
  manufacturer is incomplete.
         (d)  As soon as practicable after receiving a report
  submitted under this section that the department determines is
  complete, the department shall forward the report to the
  comptroller. The comptroller may use information contained in the
  report for the purpose of investigating and collecting any unpaid
  taxes imposed under Subchapter D, Chapter 151, Tax Code, on a new
  off-highway vehicle described in the report.
         (e)  The board may adopt rules as necessary to implement this
  section.
         (f)  Information contained in a report submitted under this
  section is confidential and not subject to disclosure under Chapter
  552, Government Code.
         SECTION 2.02.  Sections 23.1241(a)(1), (2), (7), (8), and
  (9), Tax Code, are amended to read as follows:
               (1)  "Dealer" means a person engaged in the business in
  this state of selling[, leasing, or renting] heavy equipment.  The
  term does not include a bank, savings bank, savings and loan
  association, credit union, or other finance company.  In addition,
  for purposes of taxation of a person's inventory of heavy equipment
  in a tax year, the term does not include a person who renders the
  person's inventory of heavy equipment for taxation in that tax year
  by filing a rendition statement or property report in accordance
  with Chapter 22.
               (2)  "Dealer's heavy equipment inventory" means all
  items of heavy equipment that a dealer holds for sale at retail [,
  lease, or rent] in this state [during a 12-month period].  The term
  includes items of heavy equipment that are leased or rented but
  subject to a purchase option by the lessee or renter.
               (7)  "Sales price" means:
                     (A)  the total amount of money paid or to be paid
  to a dealer for the purchase of an item of heavy equipment; or
                     (B)  for a lease or rental with an option to
  purchase, the total amount of the lease or rental payments plus any
  final consideration, excluding interest.
               (8)  "Subsequent sale" means a dealer-financed sale of
  an item of heavy equipment that, at the time of the sale, has been
  the subject of a dealer-financed sale from the same dealer's heavy
  equipment inventory in the same calendar year.  [The term does not
  include a rental or lease with an unexercised purchase option or
  without a purchase option.]
               (9)  "Total annual sales" means the total of the[:
                     [(A)]  sales price for each sale from a dealer's
  heavy equipment inventory in a 12-month period[; and
                     [(B)     lease and rental payments received for each
  lease or rental of heavy equipment inventory in a 12-month period].
         SECTION 2.03.  Sections 23.1241(b) and (e), Tax Code, are
  amended to read as follows:
         (b)  For the purpose of the computation of property tax:
               (1) [,]  the market value of a dealer's heavy equipment
  inventory on January 1 is the total annual sales, less sales to
  dealers, fleet transactions, and subsequent sales, for the 12-month
  period corresponding to the preceding tax year, divided by 12; and
               (2)  a sale is considered to occur when possession of an
  item of heavy equipment is transferred from the dealer to the
  purchaser.
         (e)  A dealer is presumed to be an owner of a dealer's heavy
  equipment inventory on January 1 if, in the 12-month period ending
  on December 31 of the preceding year, the dealer sold[, leased, or
  rented] an item of heavy equipment to a person other than a
  dealer.  The presumption is not rebutted by the fact that a dealer
  has no item of heavy equipment physically on hand for sale from the
  dealer's heavy equipment inventory on January 1.
         SECTION 2.04.  Sections 23.1242(b), (e), and (f), Tax Code,
  are amended to read as follows:
         (b)  Except for an item of heavy equipment sold to a dealer,
  an item of heavy equipment included in a fleet transaction, or an
  item of heavy equipment that is the subject of a subsequent sale,
  [or an item of heavy equipment that is subject to a lease or
  rental,] an owner or a person who has agreed by contract to pay the
  owner's current year property taxes levied against the owner's
  heavy equipment inventory shall assign a unit property tax to each
  item of heavy equipment sold from a dealer's heavy equipment
  inventory.  [In the case of a lease or rental, the owner shall
  assign a unit property tax to each item of heavy equipment leased or
  rented.]  The unit property tax of each item of heavy equipment is
  determined by multiplying the sales price of the item [or the
  monthly lease or rental payment received for the item, as
  applicable,] by the unit property tax factor.  [If the transaction
  is a lease or rental, the owner shall collect the unit property tax
  from the lessee or renter at the time the lessee or renter submits
  payment for the lease or rental.     The owner of the equipment shall
  state the amount of the unit property tax assigned as a separate
  line item on an invoice.]  On or before the 20th day of each month
  the owner shall, together with the statement filed by the owner as
  required by this section, deposit with the collector an amount
  equal to the total of unit property tax assigned to all items of
  heavy equipment sold[, leased, or rented] from the dealer's heavy
  equipment inventory in the preceding month to which a unit property
  tax was assigned.  The money shall be deposited by the collector to
  the credit of the owner's escrow account for prepayment of property
  taxes as provided by this section.  An escrow account required by
  this section is used to pay property taxes levied against the
  dealer's heavy equipment inventory, and the owner shall fund the
  escrow account as provided by this subsection.
         (e)  The comptroller by rule shall adopt a dealer's heavy
  equipment inventory tax statement form.  Each month, a dealer shall
  complete the form regardless of whether an item of heavy equipment
  is sold[, leased, or rented].  A dealer may use no other form for
  that purpose.  The statement may include the information the
  comptroller considers appropriate but shall include at least the
  following:
               (1)  a description of each item of heavy equipment
  sold, [leased, or rented] including any unique identification or
  serial number affixed to the item by the manufacturer;
               (2)  the sales price of [or lease or rental payment
  received for] the item of heavy equipment[, as applicable];
               (3)  the unit property tax of the item of heavy
  equipment, if any; and
               (4)  the reason no unit property tax is assigned if no
  unit property tax is assigned.
         (f)  On or before the 20th day of each month, a dealer shall
  file with the collector the statement covering the sale[, lease, or
  rental] of each item of heavy equipment sold[, leased, or rented] by
  the dealer in the preceding month.  On or before the 20th day of a
  month following a month in which a dealer does not sell[, lease, or
  rent] an item of heavy equipment, the dealer must file the statement
  with the collector and indicate that no sales[, leases, or rentals]
  were made in the prior month.  A dealer shall file a copy of the
  statement with the chief appraiser and retain documentation
  relating to the disposition of each item of heavy equipment sold
  [and the lease or rental of each item of heavy equipment].  A chief
  appraiser or collector may examine documents held by a dealer as
  provided by this subsection in the same manner, and subject to the
  same conditions, as provided by Section 23.1241(g).
         SECTION 2.05.  Subchapter A, Chapter 151, Tax Code, is
  amended by adding Section 151.0023 to read as follows:
         Sec. 151.0023.  "ACCOUNTING AND AUDIT SERVICES".
  "Accounting and audit services" means the making and recording of
  business financial records and statements, the creation and
  implementation of accounting or bookkeeping systems, cost
  accounting or bookkeeping services, and services provided by a
  certified public accountant, enrolled agent, or bookkeeping firm in
  connection with the preparation of financial and auditing reports.
  The term includes financial planning services, tax return
  preparation, and budgeting services.
         SECTION 2.06.  Section 151.0028, Tax Code, is amended to
  read as follows:
         Sec. 151.0028.  "AMUSEMENT SERVICES". (a) "Amusement
  services" means the provision of amusement, entertainment,
  tanning, or recreation, but does not include the provision of
  educational or health services if prescribed by a licensed
  practitioner of the healing arts for the primary purpose of
  education or health maintenance or improvement.
         (b)  "Amusement services" includes membership in a private
  club or organization that provides entertainment, tanning,
  recreational, sports, dining, or social facilities to its members.
         SECTION 2.07.  Subchapter A, Chapter 151, Tax Code, is
  amended by adding Sections 151.0029, 151.00295, 151.00352,
  151.00365, 151.00375, and 151.00378 to read as follows:
         Sec. 151.0029.  "AUTOMOTIVE SERVICES".  "Automotive
  services" means services performed on or to a motor vehicle,
  including washing, waxing, painting, lubrication, rustproofing,
  and undercoating.
         Sec. 151.00295.  "BARBERING OR COSMETOLOGY SERVICES".  
  "Barbering or cosmetology services" means acts or activities that
  constitute "barbering," as that term is defined by Section
  1601.002, Occupations Code, or "cosmetology," as that term is
  defined by Section 1602.002, Occupations Code, and any other act or
  activity provided to a client of a person who holds a license,
  certificate, permit, or other credential issued under Chapter 1601,
  1602, or 1603, Occupations Code, authorizing the person to practice
  or perform the activity.
         Sec. 151.00352.  "DATING SERVICES".  "Dating services" means
  services to arrange romantic or social dates between individuals,
  to offer potential romantic or social dates to individuals, or to
  allow individuals to contact other individuals for the purpose of
  arranging romantic or social dates.
         Sec. 151.00365.  "DEBT MANAGEMENT SERVICES".  "Debt
  management services" means acts or activities that constitute a
  "debt management service," as that term is defined by Section
  394.202, Finance Code, and any other act or activity provided to a
  client of a provider, as that term is defined by that section.
         Sec. 151.00375.  "FUNERAL SERVICES".  "Funeral services"
  means acts or activities that constitute "funeral directing," as
  that term is defined by Section 651.001, Occupations Code, and
  services provided by a funeral director, embalmer, or funeral
  establishment, as those terms are defined by that section, or by an
  employee of one of those persons.
         Sec. 151.00378.  "HUNTING OR FISHING GUIDE SERVICES".  
  "Hunting or fishing guide services" means guiding a person who is
  hunting or fishing.
         SECTION 2.08.  The heading to Section 151.0038, Tax Code, is
  amended to read as follows:
         Sec. 151.0038.  "INFORMATION SERVICES" [SERVICE"].
         SECTION 2.09.  Section 151.0038(b), Tax Code, is amended to
  read as follows:
         (b)  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, 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 [has the meaning assigned by
  Section 151.319(f)].
         SECTION 2.10.  Subchapter A, Chapter 151, Tax Code, is
  amended by adding Sections 151.00391, 151.00425, 151.0044, and
  151.00442 to read as follows:
         Sec. 151.00391.  "INTERIOR DESIGN OR INTERIOR DECORATING
  SERVICES". "Interior design or interior decorating services" means
  an act or activity provided by a person who represents that the
  person is a "registered interior designer" under Section 1053.151,
  Occupations Code, in connection with the act or activity or the
  selection or provision of advice regarding the selection of
  furnishings, materials, or finishing for a residential or
  commercial space.
         Sec. 151.00425.  "MASSAGE THERAPY SERVICES". "Massage
  therapy services" means acts or activities that constitute "massage
  therapy," as that term is defined by Section 455.001, Occupations
  Code, and any other acts or activities performed for a massage
  therapist's client in relation to massage therapy.
         Sec. 151.0044.  "PACKING SERVICES". "Packing services"
  means packing, crating, or wrapping. The term includes gift and
  package wrapping.
         Sec. 151.00442.  "PERSONAL INSTRUCTION SERVICES". "Personal
  instruction services" means coaching or instruction in an
  individual skill, including dance, golf, or tennis.
         SECTION 2.11.  Section 151.0047, Tax Code, is amended to
  read as follows:
         Sec. 151.0047.  "REAL PROPERTY CONSTRUCTION SERVICES"
  [REPAIR AND REMODELING"]. [(a)] "Real property construction
  services [repair and remodeling]" means the construction, repair,
  restoration, remodeling, or modification of an improvement to real
  property [other than:
               [(1)     a structure or separate part of a structure used
  as a residence;
               [(2)     an improvement immediately adjacent to a
  structure described by Subdivision (1) of this section and used in
  the residential occupancy of the structure or separate part of the
  structure by the person using the structure or part as a residence;
  or
               [(3)     an improvement to a manufacturing or processing
  production unit in a petrochemical refinery or chemical plant that
  provides increased capacity in the production unit].
         [(b)  In this section:
               [(1)     "Increased capacity" means the capability to
  produce:
                     [(A)     additional products or services as measured
  by units per hour or units per year; or
                     [(B)  a new product or service.
               [(2)     "Production unit" means a group of manufacturing
  and processing machines and ancillary equipment that together are
  necessary to create or produce a physical or chemical change
  beginning with the first processing of the raw material and ending
  with the finished product.
               [(3)  "New product" means a product that:
                     [(A)     has different product properties and a
  different commercial application than the product previously
  manufactured or processed by the production unit that produced the
  previous product; and
                     [(B)     is not created by straining or purifying an
  existing product or by making cosmetic changes, such as adding or
  removing color or odor, to or from an existing product.]
         SECTION 2.12.  Section 151.006(a), Tax Code, is amended to
  read as follows:
         (a)  "Sale for resale" means a sale of:
               (1)  tangible personal property or a taxable service to
  a purchaser who acquires the property or service for the purpose of
  reselling it with or as a taxable item as defined by Section 151.010
  in the United States of America or a possession or territory of the
  United States of America or in the United Mexican States in the
  normal course of business in the form or condition in which it is
  acquired or as an attachment to or integral part of other tangible
  personal property or taxable service;
               (2)  tangible personal property to a purchaser for the
  sole purpose of the purchaser's leasing or renting it in the United
  States of America or a possession or territory of the United States
  of America or in the United Mexican States in the normal course of
  business to another person, but not if incidental to the leasing or
  renting of real estate;
               (3)  tangible personal property to a purchaser who
  acquires the property for the purpose of transferring it in the
  United States of America or a possession or territory of the United
  States of America or in the United Mexican States as an integral
  part of a taxable service;
               (4)  a taxable service, other than a transport service,
  performed on tangible personal property that is held for sale by the
  purchaser of the taxable service; or
               (5)  except as provided by Subsection (c), tangible
  personal property to a purchaser who acquires the property for the
  purpose of transferring it as an integral part of performing a
  contract, or a subcontract of a contract, with the federal
  government only if the purchaser:
                     (A)  allocates and bills to the contract the cost
  of the property as a direct or indirect cost; and
                     (B)  transfers title to the property to the
  federal government under the contract and applicable federal
  acquisition regulations.
         SECTION 2.13.  Section 151.0101(a), Tax Code, is amended to
  read as follows:
         (a)  "Taxable services" means:
               (1)  amusement services;
               (2)  cable television services;
               (3)  personal services;
               (4)  motor vehicle parking and storage services;
               (5)  the repair, remodeling, maintenance, and
  restoration of tangible personal property, except:
                     (A)  aircraft;
                     (B)  a ship, boat, or other vessel, other than:
                           (i)  a taxable boat or motor as defined by
  Section 160.001;
                           (ii)  a sports fishing boat; or
                           (iii)  any other vessel used for pleasure;
  and
                     (C)  [the repair, maintenance, and restoration of
  a motor vehicle; and
                     [(D)]  the repair, maintenance, creation, and
  restoration of a computer program, including its development and
  modification, not sold by the person performing the repair,
  maintenance, creation, or restoration service;
               (6)  telecommunications services;
               (7)  credit reporting services;
               (8)  debt collection services;
               (9)  insurance services;
               (10)  information services;
               (11)  real property services;
               (12)  data processing services;
               (13)  real property construction services, except to
  the extent prohibited by Section 29, Article VIII, Texas
  Constitution [repair and remodeling];
               (14)  security services;
               (15)  telephone answering services;
               (16)  Internet access service; [and]
               (17)  a sale by a transmission and distribution
  utility, as defined in Section 31.002, Utilities Code, of
  transmission or delivery of service directly to an electricity
  end-use customer whose consumption of electricity is subject to
  taxation under this chapter;
               (18)  accounting and audit services;
               (19)  automotive services;
               (20)  barbering or cosmetology services;
               (21)  dating services;
               (22)  debt management services;
               (23)  funeral services;
               (24)  hunting or fishing guide services;
               (25)  interior design or interior decorating services;
               (26)  massage therapy services;
               (27)  packing services;
               (28)  personal instruction services;
               (29)  transport services; and
               (30)  veterinary services.
         SECTION 2.14.  Subchapter A, Chapter 151, Tax Code, is
  amended by adding Sections 151.0108 and 151.013 to read as follows:
         Sec. 151.0108.  "TRANSPORT SERVICES". "Transport services"
  means private mail or package delivery or courier service sold to a
  person in this state.
         Sec. 151.013.  "VETERINARY SERVICES". "Veterinary
  services" means an act or activity constituting the "practice of
  veterinary medicine," as that term is defined by Section 801.002,
  Occupations Code, and any other act or activity provided to a
  veterinarian's client in relation to the practice of veterinary
  medicine. The term also includes:
               (1)  prescribed medications, artificial insemination,
  breeding services, boarding, and training provided by a
  veterinarian or a person employed by a veterinarian; and
               (2)  medical tests performed on an animal or on tissue,
  fluids, or other substances removed from an animal in connection
  with diagnosis or treatment.
         SECTION 2.15.  Section 151.1551(a), Tax Code, is amended to
  read as follows:
         (a)  This section applies to an exemption provided by:
               (1)  Section 151.316(a)(6), (7), (8), (10), (11), (12),
  or (14);
               (2)  Section 151.316(b) for tangible personal property
  used in the production of agricultural products for sale;
               (3)  Section 151.3162(b) for tangible personal
  property used in the production of timber for sale;
               (4)  Sections 151.317(a)(4) and (10) [151.317(a)(5)
  and (11)] for electricity used in agriculture or timber operations;
  and
               (5)  Section 151.3111 for services performed on
  tangible personal property exempted under Section 151.316(a)(6),
  (7), (8), (10), (11), or (12), 151.316(b), or 151.3162(b).
         SECTION 2.16.  Section 151.313(a), Tax Code, is amended to
  read as follows:
         (a)  The following items are exempted from the taxes imposed
  by this chapter:
               (1)  a drug or medicine, other than insulin, if
  prescribed or dispensed for a human or animal by a licensed
  practitioner of the healing arts;
               (2)  insulin;
               (3)  [a drug or medicine that is required to be labeled
  with a "Drug Facts" panel in accordance with regulations of the
  federal Food and Drug Administration, without regard to whether it
  is prescribed or dispensed by a licensed practitioner of the
  healing arts;
               [(4)]  a hypodermic syringe or needle;
               (4) [(5)]  a brace; hearing aid or audio loop;
  orthopedic, dental, or prosthetic device; ileostomy, colostomy, or
  ileal bladder appliance; or supplies or replacement parts for the
  listed items;
               (5) [(6)]  a therapeutic appliance, device, and any
  related supplies specifically designed for those products, if
  dispensed or prescribed by a licensed practitioner of the healing
  arts, when those items are purchased and used by an individual for
  whom the items listed in this subdivision were dispensed or
  prescribed;
               (6) [(7)]  corrective lens and necessary and related
  supplies, if dispensed or prescribed by an ophthalmologist or
  optometrist;
               (7) [(8)]  specialized printing or signalling
  equipment used by the deaf for the purpose of enabling the deaf to
  communicate through the use of an ordinary telephone and all
  materials, paper, and printing ribbons used in that equipment;
               (8) [(9)]  a braille wristwatch, braille writer,
  braille paper and braille electronic equipment that connects to
  computer equipment, and the necessary adaptive devices and adaptive
  computer software;
               (9) [(10)]  each of the following items if purchased
  for use by the blind to enable them to function more independently:
  a slate and stylus, print enlarger, light probe, magnifier, white
  cane, talking clock, large print terminal, talking terminal, or
  harness for guide dog;
               (10) [(11)]  hospital beds;
               (11) [(12)]  blood glucose monitoring test strips;
               (12) [(13)]  an adjustable eating utensil used to
  facilitate independent eating if purchased for use by a person,
  including a person who is elderly or physically disabled, has had a
  stroke, or is a burn victim, who does not have full use or control of
  the person's hands or arms;
               (13) [(14)]  subject to Subsection (d), a dietary
  supplement; and
               (14) [(15)]  intravenous systems, supplies, and
  replacement parts designed or intended to be used in the diagnosis
  or treatment of humans.
         SECTION 2.17.  Sections 151.314(b), (c), (c-2), (c-3), and
  (d), Tax Code, are amended to read as follows:
         (b)  "Food products" shall include, except as otherwise
  provided herein, but shall not be limited to cereals and cereal
  products; milk and milk products[, including ice cream];
  oleomargarine; meat and meat products; poultry and poultry
  products; fish and fish products; eggs and egg products; vegetables
  and vegetable products; fruit and fruit products; spices,
  condiments, and salt; sugar and sugar products; coffee and coffee
  substitutes; tea; cocoa products; [snack items;] or any combination
  of the above.
         (c)  "Food products" shall not include:
               (1)  drugs, medicines, tonics, vitamins, dietary
  supplements, and medicinal preparations in any form;
               (2)  carbonated and noncarbonated packaged soft
  drinks, which are nonalcoholic beverages that contain natural or
  artificial sweeteners;
               (3)  ice; [or]
               (4)  candy;
               (5)  bakery items; or
               (6)  snack items.
         (c-2)  The exemption provided by Subsection (a) does not
  include the following prepared food:
               (1)  [except as provided by Subsection (c-3)(1),] food,
  food products, and drinks, including meals, milk and milk products,
  fruit and fruit products, sandwiches, salads, processed meats and
  seafoods, and vegetable juice[, and ice cream in cones or small
  cups,] served, prepared, or sold ready for immediate consumption by
  restaurants, lunch counters, cafeterias, delis, vending machines,
  hotels, or like places of business or sold ready for immediate
  consumption from pushcarts, motor vehicles, or any other form of
  vehicle;
               (2)  [except as provided by Subsection (c-3)(1),] food
  sold in a heated state or heated by the seller; or
               (3)  two or more food ingredients mixed or combined by
  the seller for sale as a single item, including items that are sold
  in an unheated state by weight or volume as a single item, but not
  including food that is only cut, repackaged, or pasteurized by the
  seller.
         (c-3)  The exemption provided by Subsection (a) includes[:
               [(1)     bakery items sold by a bakery, regardless of
  whether the items are:
                     [(A)  heated by the consumer or seller; or
                     [(B)  served with plates or other eating utensils;
               [(2)     bakery items sold at a retail location other than
  a bakery without plates or other eating utensils; and
               [(3)]  eggs, fish, meat, and poultry, and foods
  containing these raw animal foods, that require cooking by the
  consumer as recommended by the Food and Drug Administration in
  Chapter 3, Section 401.11 of its Food Code to prevent food-borne
  illness and any other food that requires cooking by the consumer
  before the food is edible.
         (d)  Food products, meals, soft drinks, bakery items, snack
  items, and candy for human consumption are exempted from the taxes
  imposed by this chapter if:
               (1)  served by a public or private school, school
  district, student organization, booster club or other school
  support organization, or parent-teacher association under an
  agreement with the proper school authorities in an elementary or
  secondary school during the regular school day or by a
  parent-teacher association during a fund-raising sale the proceeds
  of which do not benefit an individual;
               (2)  sold by a church or at a function of a church;
               (3)  served to a patient or inmate of a hospital or
  other institution licensed by the state for the care of humans;
               (4)  served to a permanent resident of a retirement
  facility which provides permanent housing and residence to
  individuals, a majority of whom are 60 years or older; or
               (5)  sold during an event sponsored or sanctioned by an
  elementary or secondary school or school district at a concession
  stand operated by a booster club or other school support
  organization formed to support the school or school district, but
  only if the proceeds from the sales benefit the school or school
  district.
         SECTION 2.18.  Section 151.314(e), Tax Code, as amended by
  Chapters 209 (H.B. 2424) and 1310 (H.B. 2425), Acts of the 78th
  Legislature, 2003, is reenacted and amended to read as follows:
         (e)  Food products, candy, snack items, bakery items, and
  soft drinks are exempted from the taxes imposed by this chapter if
  sold at an exempt sale qualifying under this subsection or if stored
  or used by the purchaser of the item at the exempt sale. A sale is
  exempted under this subsection if[:
               [(1)]  the sale is made by a member of or volunteer for
  a nonprofit organization devoted to the exclusive purpose of
  education or religious or physical training or by a group
  associated with a public or private elementary or secondary school
  and:
               (1)  [;
               [(2)]  the sale is made as a part of a fund-raising
  drive sponsored by the organization or group; and
               (2) [(3)]  all net proceeds from the sale go to the
  organization or group for its exclusive use.
         SECTION 2.19.  Sections 151.317(a) and (d), Tax Code, are
  amended to read as follows:
         (a)  Subject to Sections 151.1551, 151.359, and 151.3595 and
  Subsection (d) of this section, gas and electricity are exempted
  from the taxes imposed by this chapter when sold for:
               (1)  [residential use;
               [(2)]  use in powering equipment exempt under Section
  151.318 or 151.3185 by a person processing tangible personal
  property for sale as tangible personal property, other than
  preparation or storage of prepared food described by Section
  151.314(c-2);
               (2) [(3)]  use in lighting, cooling, and heating in the
  manufacturing area during the actual manufacturing or processing of
  tangible personal property for sale as tangible personal property,
  other than preparation or storage of prepared food described by
  Section 151.314(c-2);
               (3) [(4)]  use directly in exploring for, producing, or
  transporting, a material extracted from the earth;
               (4) [(5)]  use in agriculture, including dairy or
  poultry operations and pumping for farm or ranch irrigation;
               (5) [(6)]  use directly in electrical processes, such
  as electroplating, electrolysis, and cathodic protection;
               (6) [(7)]  use directly in the off-wing processing,
  overhaul, or repair of a jet turbine engine or its parts for a
  certificated or licensed carrier of persons or property;
               (7) [(8)]  use directly in providing, under contracts
  with or on behalf of the United States government or foreign
  governments, defense or national security-related electronics,
  classified intelligence data processing and handling systems, or
  defense-related platform modifications or upgrades;
               (8) [(9)]  use directly by a data center or large data
  center project that is certified by the comptroller as a qualifying
  data center under Section 151.359 or a qualifying large data center
  project under Section 151.3595 in the processing, storage, and
  distribution of data;
               (9) [(10)]  a direct or indirect use, consumption, or
  loss of electricity by an electric utility engaged in the purchase
  of electricity for resale; or
               (10) [(11)]  use in timber operations, including
  pumping for irrigation of timberland.
         (d)  To qualify for the exemptions in Subsections (a)(1)-(8)
  [(a)(2)-(9)], the gas or electricity must be sold to the person
  using the gas or electricity in the exempt manner.  For purposes of
  this subsection, the use of gas or electricity in an exempt manner
  by an independent contractor engaged by the purchaser of the gas or
  electricity to perform one or more of the exempt activities
  identified in Subsections (a)(1)-(8) [(a)(2)-(9)] is considered
  use by the purchaser of the gas or electricity.
         SECTION 2.20.  Section 151.350(d), Tax Code, is amended to
  read as follows:
         (d)  In this section, "restore" means:
               (1)  launder, clean, repair, treat, or apply protective
  chemicals to an item, to the extent the service is a personal
  service as defined in Section 151.0045; and
               (2)  repair, restore, or remodel, to the extent the
  service is:
                     (A)  considered to be the [a real property]
  repair, restoration, [or] remodeling, or modification of an
  improvement to real property under [service as defined in] Section
  151.0047; or
                     (B)  defined as a taxable service in Section
  151.0101(a)(5).
         SECTION 2.21.  Section 151.401(a), Tax Code, is amended to
  read as follows:
         (a)  The taxes imposed by this chapter are due and payable to
  the comptroller on or before the 20th day of the month following the
  end of each calendar month unless a taxpayer qualifies as a
  quarterly filer under Subsection (b) [of this section or unless the
  taxpayer prepays the tax on a quarterly basis as permitted by
  Section 151.424 of this code].
         SECTION 2.22.  Section 151.425, Tax Code, is amended to read
  as follows:
         Sec. 151.425.  FORFEITURE OF [DISCOUNT OR] REIMBURSEMENT.
  If a taxpayer fails to file a report required by this chapter when
  due or to pay the tax when due, the taxpayer forfeits any claim to a
  deduction [or discount] allowed under Section 151.423 [or Section
  151.424 of this code].
         SECTION 2.23.  Section 151.428(c), Tax Code, is amended to
  read as follows:
         (c)  The reporting, collection, refund, and penalty
  provisions of this chapter and Subtitle B of this title apply to the
  payments required by this section, except that Section [Sections]
  151.423 does [and 151.424 of this code do] not apply to this
  section.
         SECTION 2.24.  Section 152.047(a), Tax Code, is amended to
  read as follows:
         (a)  Except as inconsistent with this chapter and rules
  adopted under this chapter, the seller of a motor vehicle shall
  report and pay the tax imposed on a seller-financed sale to the
  comptroller on the seller's receipts from seller-financed sales in
  the same manner as the sales tax is reported and paid by a retailer
  under Sections 151.401, 151.402, 151.405, 151.406, 151.409,
  151.423, [151.424,] and 151.425.
         SECTION 2.25.  The heading to Section 162.014, Tax Code, is
  amended to read as follows:
         Sec. 162.014.  OTHER MOTOR FUEL EXCISE OR OCCUPATION TAXES
  PROHIBITED.
         SECTION 2.26.  Subtitle E, Title 2, Tax Code, is amended by
  adding Chapter 164 to read as follows:
  CHAPTER 164. TAX ON SALE OF GASOLINE OR DIESEL FUEL
         Sec. 164.0001.  DEFINITIONS. In this chapter:
               (1)  "Diesel fuel" and "gasoline" have the meanings
  assigned by Section 162.001.
               (2)  "Motor fuel" means diesel fuel or gasoline.
         Sec. 164.0002.  RULES. The comptroller may adopt rules
  necessary for the administration of this chapter.
         Sec. 164.0003.  SALES TAX IMPOSED. (a) A tax is imposed on
  each sale at retail of motor fuel in this state.
         (b)  The rate of the tax is 6.25 percent of the sales price of
  the motor fuel.
         Sec. 164.0004.  APPLICABILITY OF OTHER LAW. (a) Except as
  otherwise provided by this chapter:
               (1)  the tax imposed by this chapter is administered,
  collected, and enforced in the same manner as the tax under Chapter
  151 is administered, collected, and enforced; and
               (2)  Chapter 151 applies to the tax imposed by this
  chapter in the same manner as Chapter 151 applies to the tax imposed
  under Section 151.051.
         (b)  The tax imposed by this chapter is in addition to any
  other tax imposed by state law.
         (c)  Motor fuel subject to the tax imposed under this chapter
  is exempt from the taxes imposed under Subtitle C, Title 3.
         Sec. 164.0005.  ALLOCATION OF TAX. The comptroller shall
  allocate the net revenue derived from the tax imposed by this
  chapter as follows:
               (1)  25 percent to the credit of the available school
  fund; and
               (2)  the remainder to the credit of the state highway
  fund.
         SECTION 2.27.  Subtitle E, Title 2, Tax Code, is amended by
  adding Chapter 165 to read as follows:
  CHAPTER 165. TAX ON E-CIGARETTE VAPOR PRODUCTS
         Sec. 165.0001.  DEFINITIONS. In this chapter:
               (1)  "E-cigarette" has the meaning assigned by Section
  161.081, Health and Safety Code.
               (2)  "Vapor product" means a consumable nicotine liquid
  solution or other material containing nicotine suitable for use in
  an e-cigarette.
         Sec. 165.0002.  E-CIGARETTE VAPOR PRODUCT SALES TAX. (a) A
  tax is imposed on each sale of a vapor product in this state.
         (b)  The tax rate is 10 cents for each milliliter or
  fractional part of a milliliter of vapor product sold.
         (c)  The tax imposed under this section is in addition to the
  tax imposed under Subchapter C, Chapter 151. The tax imposed under
  this section does not apply to a sale unless the tax imposed under
  Subchapter C, Chapter 151, applies to the sale.
         Sec. 165.0003.  E-CIGARETTE VAPOR PRODUCT USE TAX. (a)  A
  tax is imposed on the storage, use, or other consumption in this
  state of a vapor product purchased from a retailer for storage, use,
  or other consumption in this state.
         (b)  The tax rate is 10 cents for each milliliter or
  fractional part of a milliliter of vapor product stored, used, or
  otherwise consumed in this state.
         (c)  The tax imposed under this section is in addition to the
  tax imposed under Subchapter D, Chapter 151. The tax imposed under
  this section does not apply to the storage, use, or other
  consumption of a vapor product unless the tax imposed under
  Subchapter D, Chapter 151, applies to the storage, use, or other
  consumption.
         Sec. 165.0004.  APPLICATION OF OTHER PROVISIONS OF CODE.
  (a) Except as provided by this chapter:
               (1)  the taxes imposed under this chapter are
  administered, imposed, collected, and enforced in the same manner
  as the taxes under Chapter 151 are administered, imposed,
  collected, and enforced; and
               (2)  the provisions of Chapter 151 applicable to the
  sales tax imposed under Subchapter C, Chapter 151, and the use tax
  imposed under Subchapter D, Chapter 151, apply to the sales and use
  taxes imposed under this chapter.
         (b)  A change in the law relating to the taxation of the sale
  or use of a vapor product under Chapter 151 also applies to the
  sales or use tax imposed under this chapter.
         Sec. 165.0005.  REPORTS. (a) A person required to file a
  report under Section 151.403 who is also required to collect or pay
  a tax under this chapter shall file with the comptroller a report
  stating:
               (1)  for sales tax purposes, the volume of vapor
  products sold by the seller during the reporting period;
               (2)  for use tax purposes, the volume of vapor products
  sold by the retailer during the reporting period for storage, use,
  or other consumption in this state;
               (3)  the volume of vapor products subject to the use tax
  that were acquired during the reporting period for storage, use, or
  other consumption in this state by a purchaser who did not pay the
  tax to a retailer;
               (4)  the amount of the taxes due under this chapter for
  the reporting period; and
               (5)  any other information required by the comptroller.
         (b)  The report required by this section for a reporting
  period is due on the same date that the tax payment for the period is
  due.
         Sec. 165.0006.  RECORDS. A person required to file a report
  under Section 151.403 who is also required to collect or pay a tax
  under this chapter shall keep a complete record of:
               (1)  the volume of vapor products sold in this state
  during each reporting period;
               (2)  the volume of vapor products, including the
  constituent parts of vapor products, purchased from every source
  during each reporting period;
               (3)  all sales and use taxes, and any money represented
  to be sales or use tax, collected during each reporting period; and
               (4)  any other information required by the comptroller.
         Sec. 165.0007.  DISPOSITION OF PROCEEDS. The comptroller
  shall deposit the proceeds from taxes imposed under this chapter to
  the credit of the general revenue fund.
         SECTION 2.28.  Section 171.1012, Tax Code, is amended by
  adding Subsection (u) to read as follows:
         (u)  Notwithstanding any other provision of this section, a
  taxable entity that employs a professional athlete and that elects
  to subtract costs of goods sold may not include the cost to employ
  the professional athlete as labor costs when calculating the
  entity's costs of goods sold to the extent the amount paid to the
  athlete exceeds the limit on wage and cash compensation under
  Section 171.1013(c) as applied to the athlete. In this subsection,
  "professional athlete" has the meaning assigned by Section 406.095,
  Labor Code.
         SECTION 2.29.  Section 183.043(b), Tax Code, is amended to
  read as follows:
         (b)  Section [Sections] 151.423 does [and 151.424 do] not
  apply to the tax imposed by this subchapter.
         SECTION 2.30.  Section 313.021(2), Tax Code, is amended to
  read as follows:
               (2)  "Qualified property" means:
                     (A)  land:
                           (i)  that is located in an area designated as
  a reinvestment zone under Chapter 311 or 312 or as an enterprise
  zone under Chapter 2303, Government Code;
                           (ii)  on which a person proposes to
  construct a new building or erect or affix a new improvement that
  does not exist before the date the person submits a complete
  application for a limitation on appraised value under this
  subchapter;
                           (iii)  that is not subject to a tax abatement
  agreement entered into by a school district under Chapter 312; and
                           (iv)  on which, in connection with the new
  building or new improvement described by Subparagraph (ii), the
  owner or lessee of, or the holder of another possessory interest in,
  the land proposes to:
                                 (a)  make a qualified investment in an
  amount equal to at least the minimum amount required by Section
  313.023; and
                                 (b)  create at least 25 new qualifying
  jobs;
                     (B)  the new building or other new improvement
  described by Paragraph (A)(ii); and
                     (C)  tangible personal property:
                           (i)  that is not subject to a tax abatement
  agreement entered into by a school district under Chapter 312; and
                           (ii)  [for which a sales and use tax refund
  is not claimed under Section 151.3186; and
                           [(iii)]  except for new equipment described
  in Section 151.318(q) or (q-1), that is first placed in service in
  the new building, in the newly expanded building, or in or on the
  new improvement described by Paragraph (A)(ii), or on the land on
  which that new building or new improvement is located, if the
  personal property is ancillary and necessary to the business
  conducted in that new building or in or on that new improvement.
         SECTION 2.31.  Section 321.203(n), Tax Code, is amended to
  read as follows:
         (n)  A sale of a service described by Section 151.0047 to
  construct, repair, restore, remodel, [repair,] or modify an
  improvement to [restore nonresidential] real property is
  consummated at the location of the job site.
         SECTION 2.32.  Section 323.203(m), Tax Code, is amended to
  read as follows:
         (m)  A sale of a service described by Section 151.0047 to
  construct, repair, restore, remodel, [repair,] or modify an
  improvement to [restore nonresidential] real property is
  consummated at the location of the job site.
         SECTION 2.33.  Subchapter B, Chapter 501, Transportation
  Code, is amended by adding Section 501.0301 to read as follows:
         Sec. 501.0301.  CERTAIN OFF-HIGHWAY VEHICLES PURCHASED
  OUTSIDE THIS STATE. (a) In this section:
               (1)  "Off-highway vehicle" means:
                     (A)  an all-terrain vehicle or recreational
  off-highway vehicle, as those terms are defined by Section 502.001;
                     (B)  a motorcycle, as that term is defined by
  Section 541.201, other than a motorcycle described by Section
  521.001, that is designed by the manufacturer for off-highway use
  only; or
                     (C)  a utility vehicle, as that term is defined by
  Section 663.001.
               (2)  "Retailer" has the meaning assigned by Section
  151.008, Tax Code.
         (b)  A county assessor-collector may not issue a title
  receipt and the department may not issue a certificate of title for
  an off-highway vehicle purchased from a retailer located outside
  this state unless the applicant for the title delivers to the
  assessor-collector or the department, as applicable, satisfactory
  evidence showing that the applicant:
               (1)  has paid to the comptroller the applicable use tax
  imposed on the vehicle under Subchapter D, Chapter 151, Tax Code; or
               (2)  is not required to pay any taxes described by
  Subdivision (1).
         SECTION 2.34.  Subchapter F, Chapter 502, Transportation
  Code, is amended by adding Sections 502.257 and 502.258 to read as
  follows:
         Sec. 502.257.  FEE; ELECTRIC MOTOR VEHICLE.  The fee for a
  registration year for registration of a motor vehicle that uses
  electricity as its only source of motor power is the greater of:
               (1)  $225; or
               (2)  the applicable fee under Section 502.253.
         Sec. 502.258.  FEE; HYBRID MOTOR VEHICLE.  (a)  In this
  section, "hybrid motor vehicle" means a motor vehicle that draws
  propulsion energy from both gasoline or conventional diesel fuel
  and a rechargeable energy storage system.
         (b)  The fee for a registration year for registration of a
  hybrid motor vehicle is the greater of:
               (1)  $125; or
               (2)  the applicable fee under Section 502.253.
         SECTION 2.35.  The following provisions of the Tax Code are
  repealed:
               (1)  Section 23.1241(b-1);
               (2)  Section 151.314(h);
               (3)  Section 151.315;
               (4)  Section 151.317(c);
               (5)  Section 151.3186;
               (6)  Section 151.319;
               (7)  Section 151.320;
               (8)  Section 151.335; and
               (9)  Section 151.424.
         SECTION 2.36.  Not later than March 1, 2020, a manufacturer
  shall submit the first report required by Section 2301.008,
  Occupations Code, as added by this article.
         SECTION 2.37.  This article applies only to ad valorem taxes
  imposed for a tax year beginning on or after the effective date of
  this Act.
         SECTION 2.38.  The changes in law made by this article do not
  affect tax liability accruing before the effective date of this
  Act. That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 2.39.  Section 501.0301, Transportation Code, as
  added by this article, applies only to an application for title that
  is filed on or after the effective date of this Act. An application
  for title that is filed before the effective date of this Act is
  governed by the law in effect on the date the application was filed,
  and the former law is continued in effect for that purpose.
  ARTICLE 3. EFFECTIVE DATE
         SECTION 3.01.  This Act takes effect January 1, 2020, but
  only if the constitutional amendment proposed by the 86th
  Legislature, Regular Session, 2019, authorizing the legislature to
  exempt from ad valorem taxation by a school district a portion of
  the appraised value of an individual's residence homestead in an
  amount equal to the lesser of 50 percent of the appraised value of
  the residence homestead after all other applicable exemptions for
  which the individual has qualified the homestead are applied or 150
  percent of the median appraised value of all single-family
  residences in the state and authorizing the legislature to exempt
  from ad valorem taxation by one or more political subdivisions of
  this state inventory held for sale at retail is approved by the
  voters. If that constitutional amendment is not approved by the
  voters, this Act has no effect.