|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to state and local taxes and fees; imposing a tax; imposing |
|
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 48.255(b), Education Code, is amended |
|
to read as follows: |
|
(b) The state 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 [93 percent, or a lower percentage |
|
set by appropriation for a school year; |
|
[(2) the percentage determined by the following |
|
formula: |
|
[SCP = PYCP X 1.025/(1 + ECPV); or |
|
[(3) the percentage determined under this section for |
|
the preceding school year]. |
|
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 |
|
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; |
|
(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; |
|
(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; and |
|
(14) the total dollar amount of any exemptions granted |
|
under Section 11.35, Tax Code. |
|
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 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. Section 48.255(c), Education Code, is |
|
repealed. |
|
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 OTHER FEE AND TAX REVENUE |
|
SECTION 2.01. Subchapter A, Chapter 151, Tax Code, is |
|
amended by adding Section 151.0025 to read as follows: |
|
Sec. 151.0025. "ADVERTISING SERVICES". "Advertising |
|
services" means: |
|
(1) the provision of advertising space and time, |
|
including television and radio time, magazine space, newspaper |
|
space, and billboard space; or |
|
(2) the development of an advertising campaign or the |
|
content of an advertisement, including a television, radio, print, |
|
or Internet advertisement. |
|
SECTION 2.02. Sections 151.0028(a) and (b), Tax Code, are |
|
amended to read as follows: |
|
(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 2.03. Subchapter A, Chapter 151, Tax Code, is |
|
amended by adding Sections 151.0029, 151.00295, 151.00352, |
|
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. 151.00375. "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 2.04. The heading to Section 151.0038, Tax Code, is |
|
amended to read as follows: |
|
Sec. 151.0038. "INFORMATION SERVICES" [SERVICE"]. |
|
SECTION 2.05. 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 2.06. 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 2.07. Section 151.0045, Tax Code, is amended to |
|
read as follows: |
|
Sec. 151.0045. "PERSONAL SERVICES". "Personal services" |
|
means those personal services listed as personal services under |
|
Group 721, Major Group 72 of the Standard Industrial Classification |
|
Manual, 1972, and includes massage parlors, escort services, and |
|
Turkish baths under Group 729 of said manual but does not include |
|
any other services listed under Group 729 unless otherwise covered |
|
under this chapter, prepared by the statistical policy division of |
|
the office on management and budget, office of the president of the |
|
United States. [The term does not include services provided |
|
through coin-operated machines that are operated by the consumer.] |
|
SECTION 2.08. 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 2.09. 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 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) tangible personal property or a taxable service to |
|
a purchaser who acquires the property or service for the purpose of |
|
transferring it as an integral part of performing a contract, or a |
|
subcontract of a contract, for the sale, other than the lease or |
|
rental, of tangible personal property with an entity or |
|
organization exempted from the taxes imposed by this chapter under |
|
Section 151.309 or 151.310 only if the purchaser: |
|
(A) allocates and bills to the contract the cost |
|
of the property or service as a direct or indirect cost; and |
|
(B) transfers title to the property to the exempt |
|
entity or organization under the contract and any applicable |
|
acquisition regulations. |
|
SECTION 2.10. 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) advertising services; |
|
(19) automotive services; |
|
(20) barbering or cosmetology services; |
|
(21) dating services; |
|
(22) funeral services; |
|
(23) hunting or fishing guide services; |
|
(24) interior design or interior decorating services; |
|
(25) massage therapy services; |
|
(26) packing services; |
|
(27) personal instruction services; |
|
(28) transport services; and |
|
(29) veterinary services. |
|
SECTION 2.11. 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 2.12. 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 2.13. 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 2.14. 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 2.15. 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 2.16. 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 2.17. 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 2.18. 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 2.19. 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 2.20. 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 2.21. 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 2.22. 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 2.23. 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 2.24. Section 183.043(b), Tax Code, is amended to |
|
read as follows: |
|
(b) Sections 151.027(a) and [,] 151.423[, and 151.424] do |
|
not apply to the tax imposed by this subchapter. |
|
SECTION 2.25. 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 2.26. 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 2.27. 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 2.28. 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. Notwithstanding |
|
any other provision of this subchapter, 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) Notwithstanding any other provision of this subchapter, |
|
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 2.29. The following provisions of the Tax Code are |
|
repealed: |
|
(1) Section 151.0028(c); |
|
(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; and |
|
(8) Section 151.424. |
|
SECTION 2.30. 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 2.31. Section 171.1012(u), Tax Code, as added by |
|
this article, applies only to a report originally due on or after |
|
the effective date of this Act. |
|
ARTICLE 3. EFFECTIVE DATE |
|
SECTION 3.01. This Act takes effect January 1, 2022, but |
|
only if the constitutional amendment proposed by the 87th |
|
Legislature, Regular Session, 2021, 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 150 percent of the median appraised value of all |
|
single-family residences in the state is approved by the voters. If |
|
that constitutional amendment is not approved by the voters, this |
|
Act has no effect. |