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A BILL TO BE ENTITLED
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AN ACT
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relating to sales and use tax rates and refunds for certain tangible |
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personal property used to provide cable television services, |
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Internet access services, or telecommunications services; reducing |
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the rate of the state sales and use tax applicable to certain |
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taxable items. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Effective January 1, 2028, Subchapter H, Chapter |
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151, Tax Code, is amended by adding Section 151.3187 to read as |
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follows: |
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Sec. 151.3187. PROPERTY USED IN CABLE TELEVISION, INTERNET |
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ACCESS, OR TELECOMMUNICATIONS SERVICES. (a) In this section, |
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"provider" means a provider of cable television service, Internet |
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access service, or telecommunications services. |
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(b) Notwithstanding Sections 151.051 and 151.101 and except |
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as provided by Subsection (c), the rate of the tax imposed under |
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this chapter on the sale, lease, or rental or storage, use, or other |
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consumption of tangible personal property is four percent if: |
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(1) the property is sold, leased, or rented to or |
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stored, used, or consumed by a provider or a subsidiary of a |
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provider; and |
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(2) the property is directly used or consumed by the |
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provider or subsidiary described by Subdivision (1) in or during: |
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(A) the distribution of cable television |
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service; |
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(B) the provision of Internet access service; or |
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(C) the transmission, conveyance, routing, or |
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reception of telecommunications services. |
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(c) This section does not apply to: |
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(1) the sale, lease, or rental or storage, use, or |
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other consumption of tangible personal property directly used or |
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consumed in or during the provision, creation, or production of a |
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data processing service or information service; or |
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(2) a tax authorized or imposed under Subtitle C, |
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Title 3. |
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(d) The comptroller shall adopt rules to implement this |
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section, including rules providing for a partial refund of any |
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amount of tax imposed at the rate provided by Subsection (b) but |
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collected at the rate provided by Section 151.051(b). |
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SECTION 2. Section 151.3186, Tax Code, is repealed. |
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SECTION 3. (a) The repeal of Section 151.3186, Tax Code, by |
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this Act does not affect a refund: |
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(1) to which a taxpayer became entitled before the |
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effective date of this Act; and |
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(2) for which a taxpayer timely filed a claim with the |
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comptroller of public accounts on or before March 31, 2027. |
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(b) Except as provided by Subsection (a) of this section, |
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the change in law made by this Act does not affect tax liability |
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accruing before the effective date of this Act. That liability |
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continues in effect as if this Act had not been enacted, and the |
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former law is continued in effect for the collection of taxes due |
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and for civil and criminal enforcement of the liability for those |
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taxes. |
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SECTION 4. Except as otherwise provided by this Act, this |
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Act takes effect January 1, 2027. |