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A BILL TO BE ENTITLED
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AN ACT
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relating to the exclusion of real property repair and remodeling |
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services from sales and use taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.0101(a), Tax Code, is amended to |
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read as follows: |
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(a) "Taxable services" means: |
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(1) amusement services; |
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(2) cable television services; |
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(3) personal services; |
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(4) motor vehicle parking and storage services; |
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(5) the repair, remodeling, maintenance, and |
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restoration of tangible personal property, except: |
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(A) aircraft; |
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(B) a ship, boat, or other vessel, other than: |
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(i) a taxable boat or motor as defined by |
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Section 160.001; |
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(ii) a sports fishing boat; or |
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(iii) any other vessel used for pleasure; |
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(C) the repair, maintenance, and restoration of a |
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motor vehicle; and |
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(D) the repair, maintenance, creation, and |
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restoration of a computer program, including its development and |
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modification, not sold by the person performing the repair, |
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maintenance, creation, or restoration service; |
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(6) telecommunications services; |
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(7) credit reporting services; |
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(8) debt collection services; |
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(9) insurance services; |
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(10) information services; |
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(11) real property services; |
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(12) data processing services; |
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(13) [real property repair and remodeling; |
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[(14)] security services; |
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(14) [(15)] telephone answering services; |
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(15) [(16)] Internet access service; and |
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(16) [(17)] a sale by a transmission and distribution |
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utility, as defined in Section 31.002, Utilities Code, of |
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transmission or delivery of service directly to an electricity |
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end-use customer whose consumption of electricity is subject to |
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taxation under this chapter. |
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SECTION 2. Sections 151.350(a) and (d), Tax Code, are |
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amended to read as follows: |
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(a) Labor to restore [real or] tangible personal property is |
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exempted from the taxes imposed by this chapter if: |
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(1) the amount of the charge for labor is separately |
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itemized; and |
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(2) the restoration is performed on property damaged |
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within a disaster area by the condition that caused the area to be |
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declared a disaster area. |
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(d) In this section, "restore" means: |
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(1) launder, clean, repair, treat, or apply protective |
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chemicals to an item, to the extent the service is a personal |
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service as defined in Section 151.0045; and |
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(2) repair, restore, or remodel, to the extent the |
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service is[: |
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[(A) a real property repair or remodeling service |
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as defined in Section 151.0047; or |
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[(B)] defined as a taxable service in Section |
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151.0101(a)(5). |
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SECTION 3. Section 321.203(e-1), Tax Code, is amended to |
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read as follows: |
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(e-1) Except as otherwise provided by Subsection (f), (g), |
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(g-1), (g-2), (g-3), (h), (i), (j), (k), or (m), [or (n),] a sale of |
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a taxable item made by a marketplace seller through a marketplace as |
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provided by Section 151.0242 is consummated at the location in this |
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state to which the item is shipped or delivered or at which |
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possession is taken by the purchaser. |
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SECTION 4. Section 323.203(e-1), Tax Code, is amended to |
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read as follows: |
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(e-1) Except as otherwise provided by Subsection (f), (g), |
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(g-1), (g-2), (g-3), (h), (i), (j), or (k), [or (m),] a sale of a |
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taxable item made by a marketplace seller through a marketplace as |
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provided by Section 151.0242 is consummated at the location in this |
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state to which the item is shipped or delivered or at which |
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possession is taken by the purchaser. |
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SECTION 5. Sections 151.0047, 151.3501, 321.203(n), and |
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323.203(m), Tax Code, are repealed. |
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SECTION 6. The changes in law made by this Act do not affect |
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tax liability accruing before the effective date of this Act. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for civil and criminal enforcement of the liability |
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for those taxes. |
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SECTION 7. This Act takes effect September 1, 2025. |