87R2883 RDS-F
 
  By: Nelson S.B. No. 200
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exclusion of Internet access service from sales and
  use taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 151.00394(b), Tax Code, is amended to
  read as follows:
         (b)  "Internet access service" does not include [and the
  exemption under Section 151.325 does not apply to] any [other]
  taxable service listed in Section 151.0101(a), unless the taxable
  service is provided in conjunction with and is merely incidental to
  the provision of Internet access service.
         SECTION 2.  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;
                     (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 repair and remodeling;
               (14)  security services;
               (15)  telephone answering services; and
               (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.
         SECTION 3.  Section 151.325, Tax Code, is repealed.
         SECTION 4.  The change in law made by this Act does 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 5.  This Act takes effect July 1, 2021, if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for effect on that
  date, this Act takes effect September 1, 2021.