By: Armbrister S.B. No. 1125
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to technical changes to taxes and fees administered by the
1-3 comptroller of public accounts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subsection (k), Section 43.0751, Local Government
1-6 Code, is amended to read as follows:
1-7 (k) A municipality that has annexed all or part of a
1-8 district for limited purposes under this section may impose a
1-9 [retail] sales and use tax within the boundaries of the part of the
1-10 district that is annexed for limited purposes. Except to the
1-11 extent it is inconsistent with this section, Chapter 321, Tax Code,
1-12 governs the imposition, computation, administration, governance,
1-13 and abolition of the sales and use tax.
1-14 SECTION 2. Subsection (b), Section 326.023, Local Government
1-15 Code, is amended to read as follows:
1-16 (b) The petition must:
1-17 (1) include a name for the proposed district that
1-18 describes the location of the district followed by the words
1-19 "Library District";
1-20 (2) describe the boundaries of the proposed district
1-21 by:
1-22 (A) metes and bounds;
1-23 (B) lot and block number, if there is a recorded
1-24 map or plat and survey of the area; or
1-25 (C) other sufficient legal description;
2-1 (3) include the names of five persons who are willing
2-2 and qualified to serve as the initial board of trustees of the
2-3 district if elected at the election to create the district; [and]
2-4 (4) include the rate of the sales and use tax that
2-5 would be imposed by the board of the proposed district on approval
2-6 of the district; and
2-7 (5) include a list of each known business identified
2-8 in the proposed boundaries of the district.
2-9 SECTION 3. Section 326.029, Local Government Code, is
2-10 amended by amending Subsection (c) and adding Subsection (d) to
2-11 read as follows:
2-12 (c) The order canvassing the results of the election must:
2-13 (1) contain a description of the district's boundaries
2-14 and a map of the district; [and]
2-15 (2) state the date of the election; and
2-16 (3) state the total number of votes cast for and
2-17 against the ballot proposition [be filed in the deed records of the
2-18 county in which the district is located].
2-19 (d) The order issued by a commissioners court canvassing the
2-20 results of the election must be:
2-21 (1) filed in the deed records of the county in which
2-22 the district is located; and
2-23 (2) mailed or delivered to the comptroller not later
2-24 than the 30th day after the date the order is issued.
2-25 SECTION 4. Subchapter F, Chapter 363, Local Government Code,
2-26 is amended by adding Section 363.262 to read as follows:
3-1 Sec. 363.262. EFFECTIVE DATE OF TAX CHANGE. (a) If less
3-2 than a majority of the votes cast in a continuation referendum are
3-3 for the continuation of the district or if a majority of the votes
3-4 cast in a dissolution referendum are for dissolution of the
3-5 district, the board shall notify the comptroller in writing of the
3-6 results of the referendum not later than the 10th day after the
3-7 date the referendum returns are canvassed.
3-8 (b) If the district is to be dissolved as a result of the
3-9 referendum, the abolition of the local crime control sales and use
3-10 tax takes effect on the first day of the first calendar quarter
3-11 that occurs after the expiration of the first complete calendar
3-12 quarter that occurs after the comptroller receives a notice of the
3-13 results of the continuation or dissolution referendum.
3-14 (c) If the comptroller determines that an effective date
3-15 provided by Subsection (b) will occur before the comptroller can
3-16 reasonably take the action required to implement abolition of the
3-17 tax, the comptroller may extend the effective date until the final
3-18 day of the succeeding calendar quarter.
3-19 SECTION 5. Section 378.004, Local Government Code, as added
3-20 by Chapter 305, Acts of the 76th Legislature, Regular Session,
3-21 1999, is amended to read as follows:
3-22 Sec. 378.004. MUNICIPAL POWERS. In addition to other powers
3-23 that a municipality may exercise, a municipality may:
3-24 (1) waive or adopt fees related to the construction of
3-25 buildings in the zone, including fees related to the inspection of
3-26 buildings and impact fees;
4-1 (2) enter into agreements, for a period of not more
4-2 than 10 years, for the purpose of benefiting the zone, for [sales
4-3 tax] refunds [or abatements] of municipal sales tax on sales made
4-4 in the zone;
4-5 (3) enter into agreements abating municipal property
4-6 taxes on property in the zone subject to the duration limits of
4-7 Section 312.204, Tax Code; and
4-8 (4) set baseline performance standards, such as the
4-9 Energy Star Program as developed by the Department of Energy, to
4-10 encourage the use of alternative building materials that address
4-11 concerns relating to the environment or to the building costs,
4-12 maintenance, or energy consumption.
4-13 SECTION 6. Section 383.104, Local Government Code, is
4-14 amended by adding Subsection (c) to read as follows:
4-15 (c) The district's sales and use tax is automatically
4-16 discontinued by operation of law if no tax revenue is collected
4-17 within the district before the first anniversary of the date the
4-18 tax took effect. The comptroller shall notify the board and the
4-19 commissioners court of the county in which the district is located
4-20 of the discontinuance of the tax. The district may authorize a new
4-21 sales and use tax by following the procedures provided by this
4-22 subchapter for imposition of the tax.
4-23 SECTION 7. Subsection (a), Section 25.00212, Government
4-24 Code, is amended to read as follows:
4-25 (a) At the end of each state fiscal year the comptroller
4-26 shall determine the amounts deposited in the judicial fund under
5-1 Section 51.704 [51.703] and the amounts paid to the counties under
5-2 Section 25.00211. If the total amount paid under Section 51.704 by
5-3 all counties exceeds the total amount paid to counties under
5-4 Section 25.00211, the state shall remit the excess to the counties
5-5 proportionately based on the percentage of the total paid by each
5-6 county.
5-7 SECTION 8. Subsection (b), Section 111.0081, Tax Code, is
5-8 amended to read as follows:
5-9 (b) This section does not apply to a determination under
5-10 Section 111.022 [151.506 of this code].
5-11 SECTION 9. Subsection (e), Section 111.301, Tax Code, is
5-12 amended to read as follows:
5-13 (e) Application for the refund is to the comptroller. The
5-14 application must:
5-15 (1) be made on the form prescribed by the comptroller;
5-16 (2) have attached a tax receipt from the assessor and
5-17 collector of taxes for the school district showing full payment of
5-18 school district ad valorem taxes on the property for the tax year
5-19 for which the refund is sought; and
5-20 (3) include sufficient information for the comptroller
5-21 to determine the portion of the ad valorem taxes paid to a school
5-22 district by the person for the applicable tax year on the property
5-23 that the person would not have been required to pay if the school
5-24 district had entered into a tax abatement agreement concerning the
5-25 property that included the same terms, including terms governing
5-26 the portion of the property that is to be exempt from taxation
6-1 under the agreement, as specified by the [applicable] municipal or
6-2 county tax abatement agreement on which the refund amount is to be
6-3 based.
6-4 SECTION 10. Section 111.302, Tax Code, is amended by
6-5 amending Subsections (b) and (c) and adding Subsection (d) to read
6-6 as follows:
6-7 (b) Applications for refund must be filed before August 1 of
6-8 the year following the tax year for which the person applying has
6-9 paid ad valorem taxes described by Section 111.301(a). Within 90
6-10 [60] days thereafter, the comptroller shall compute the total
6-11 amount eligible for refund.
6-12 (c) If the total amount of eligible refunds claimed by all
6-13 persons, as determined under Subsection (b), is less than $10
6-14 million, the amount of a tax refund is equal to the ad valorem
6-15 taxes paid to a school district by the person for the applicable
6-16 tax year on the property that the person would not have been
6-17 required to pay if the school district had entered into a tax
6-18 abatement agreement covering the property that included the same
6-19 terms, including terms governing the portion of the property that
6-20 is to be exempt from taxation under the agreement, as specified by
6-21 the [applicable] municipal or county tax abatement agreement on
6-22 which the refund amount is to be based. If the total amount of
6-23 eligible refunds claimed by all persons, as determined under
6-24 Subsection (b), is greater than $10 million, the comptroller shall
6-25 reduce the amount of each refund as necessary to allow all
6-26 claimants to share proportionally the $10 million available. The
7-1 amount by which a refund is reduced under this subsection may not
7-2 be included in a claim for a refund in a subsequent year.
7-3 (d) If an eligible person has entered into tax abatement
7-4 agreements with the municipality and the county, and the agreements
7-5 provided to the comptroller show that the agreements exempt
7-6 different portions of property value, the refund amount shall be
7-7 computed based on the greater of the portions exempted.
7-8 SECTION 11. Section 111.304, Tax Code, is amended to read as
7-9 follows:
7-10 Sec. 111.304. EVALUATION; ANNUAL REPORT. Not later than
7-11 [December 1, 1999, and] December 1 of each [subsequent] year, the
7-12 comptroller shall submit an annual report to the legislature. The
7-13 report:
7-14 (1) must document the applications for refunds filed
7-15 with the comptroller under this subchapter;
7-16 (2) must document the refunds paid by the comptroller
7-17 under this chapter; and
7-18 (3) [must contain relevant information obtained from
7-19 the Texas Department of Commerce, including information to
7-20 demonstrate the relationship between tax refunds under this
7-21 subchapter and the economy; and]
7-22 [(4)] may include any other relevant information that
7-23 the comptroller determines is applicable to this subchapter or to
7-24 Chapter 312.
7-25 SECTION 12. Subsection (a), Section 151.007, Tax Code, is
7-26 amended to read as follows:
8-1 (a) Except as provided by Subsections (c) and (d) [of this
8-2 section], "sales price" or "receipts" means the total amount for
8-3 which a taxable item is sold, leased, or rented, valued in money,
8-4 without a deduction for the cost of:
8-5 (1) the taxable item sold, leased, or rented;
8-6 (2) the materials used, labor or service employed,
8-7 interest, losses, or other expenses;
8-8 (3) the transportation or installation of tangible
8-9 personal property; or
8-10 (4) transportation incident to the performance of a
8-11 taxable service.
8-12 SECTION 13. Section 151.010, Tax Code, is amended to read as
8-13 follows:
8-14 Sec. 151.010. "TAXABLE ITEM." "Taxable item" means tangible
8-15 personal property and taxable services. Except as otherwise
8-16 provided by this chapter, the sale or use of a taxable item in
8-17 electronic form instead of on physical media does not alter the
8-18 item's tax status.
8-19 SECTION 14. Section 151.057, Tax Code, is amended to read as
8-20 follows:
8-21 Sec. 151.057. SERVICES BY EMPLOYEES. The following services
8-22 are not taxable under this chapter:
8-23 (1) a service performed by an employee for his
8-24 employer in the regular course of business, within the scope of the
8-25 employee's duties, and for which the employee is paid his regular
8-26 wages or salary;
9-1 (2) a service performed by an employee of a temporary
9-2 employment service as defined by Section 93.001, Labor Code, [a
9-3 temporary help service] for an employer to supplement the
9-4 employer's existing work force on a temporary basis, when the
9-5 service is normally performed by the employer's own employees, the
9-6 employer provides all supplies and equipment necessary, and the
9-7 help is under the direct or general supervision of the employer to
9-8 whom the help is furnished; or
9-9 (3) a service performed by assigned employees of a
9-10 staff leasing company, either licensed under Chapter 91, Labor
9-11 Code, or exempt from the licensing requirements of that chapter,
9-12 for a client company under a written contract that provides for
9-13 shared employment responsibilities between the staff leasing
9-14 company and the client company for the assigned employees, most of
9-15 whom must have been previously employed by the client company. The
9-16 comptroller shall prescribe by rule the minimum percentage of
9-17 assigned employees that must have been previously employed by the
9-18 client company, the minimum time period the assigned employees must
9-19 have been employed by the client company prior to the commencement
9-20 of its contract, and such other criteria as the comptroller may
9-21 deem necessary to properly implement this section.
9-22 SECTION 15. Subsection (a), Section 151.155, Tax Code, is
9-23 amended to read as follows:
9-24 (a) Except as provided by Section 151.3181 for property used
9-25 in manufacturing, if [If] a purchaser certifies in writing to a
9-26 seller that a taxable item sold, leased, or rented to the purchaser
10-1 will be used in a manner or for a purpose that qualifies the sale
10-2 of the item for an exemption from the taxes imposed by this
10-3 chapter, and if the purchaser then uses the item in some other
10-4 manner or for some other purpose, the purchaser is liable for the
10-5 payment of the sales tax on the value of the taxable item for any
10-6 period during which the item is used in the divergent manner or for
10-7 the divergent purpose.
10-8 SECTION 16. Subsection (b), Section 151.257, Tax Code, is
10-9 amended to read as follows:
10-10 (b) If the security filed by the person is a surety bond,
10-11 the comptroller shall send a copy of the determination to each
10-12 surety on the bond and shall demand payment from both the person
10-13 filing the bond and each surety. A surety's obligation under the
10-14 bond is not affected by whether the surety has a record of the
10-15 receipt of a copy of the comptroller's determination notice or
10-16 payment demand.
10-17 SECTION 17. Subchapter H, Chapter 151, Tax Code, is amended
10-18 by adding Section 151.3021 to read as follows:
10-19 Sec. 151.3021. PACKAGING SUPPLIES AND WRAPPING. (a) In
10-20 this section:
10-21 (1) "Laundry or dry cleaner" does not include
10-22 coin-operated or other self-service garment cleaning facilities.
10-23 (2) "Wrapping, packing, and packaging supplies" means
10-24 hangers, safety pins, pins, inventory tags, staples, boxes, paper
10-25 wrappers, and plastic bags.
10-26 (b) Internal and external wrapping, packing, and packaging
11-1 supplies are exempted from the taxes imposed by this chapter if
11-2 sold to a person who is a laundry or dry cleaner for use in
11-3 wrapping, packing, or packaging an item that has been pressed and
11-4 dry cleaned or laundered by the person operating as a laundry or
11-5 dry cleaner in the regular course of business.
11-6 SECTION 18. Subsection (a), Section 151.308, Tax Code, is
11-7 amended to read as follows:
11-8 (a) The following are exempted from the taxes imposed by
11-9 this chapter:
11-10 (1) oil as taxed by Chapter 202;
11-11 (2) sulphur as taxed by Chapter 203;
11-12 (3) motor fuels and special fuels as defined, taxed,
11-13 or exempted by Chapter 153;
11-14 (4) cement as taxed by Chapter 181;
11-15 (5) motor vehicles, trailers, and semitrailers as
11-16 defined, taxed, or exempted by Chapter 152 [or 157], other than a
11-17 mobile office as defined by Section 152.001(16);
11-18 (6) mixed beverages, ice, or nonalcoholic beverages
11-19 and the preparation or service of these items if the receipts are
11-20 taxable by Chapter 183 [202, Alcoholic Beverage Code];
11-21 (7) alcoholic beverages when sold to the holder of a
11-22 private club registration permit or to the agent or employee of the
11-23 holder of a private club registration permit if the holder or agent
11-24 or employee is acting as the agent of the members of the club and
11-25 if the beverages are to be served on the premises of the club;
11-26 (8) oil well service as taxed by Subchapter E, Chapter
12-1 191; and
12-2 (9) insurance premiums subject to gross premiums
12-3 taxes.
12-4 SECTION 19. Section 151.310, Tax Code, is amended by
12-5 amending Subsection (d) and adding Subsection (f) to read as
12-6 follows:
12-7 (d) If two or more organizations jointly hold a tax-free
12-8 sale or auction, each [neither] organization may hold one
12-9 additional [another] tax-free sale or auction during the calendar
12-10 year in which the joint sale or auction is held. The employment of
12-11 and payment of a reasonable fee to an auctioneer to conduct a
12-12 tax-free auction does not disqualify an otherwise qualified
12-13 organization from receiving the exemption provided by Subsection
12-14 (c) [of this section].
12-15 (f) A qualifying joint venture or partnership is entitled to
12-16 an exemption from the tax imposed by this chapter on its purchases.
12-17 To qualify, the joint venture or partnership must be an entity that
12-18 is formed between a for-profit entity and a nonprofit hospital or
12-19 hospital system that qualifies for an exemption under Subsection
12-20 (e) and must provide community benefits, including charity care and
12-21 government-sponsored indigent health care, in the manner prescribed
12-22 by Subchapter D, Chapter 311, Health and Safety Code. The
12-23 exemption is limited to the percentage that the nonprofit hospital
12-24 or hospital system owns in the joint venture or partnership.
12-25 SECTION 20. Section 151.313, Tax Code, as amended by
12-26 Chapters 394 and 683, Acts of the 76th Legislature, Regular
13-1 Session, 1999, is reenacted and amended to read as follows:
13-2 Sec. 151.313. HEALTH CARE SUPPLIES. (a) The following
13-3 items are exempted from the taxes imposed by this chapter:
13-4 (1) a drug or medicine, other than insulin, if
13-5 prescribed or dispensed for a human or animal by a licensed
13-6 practitioner of the healing arts;
13-7 (2) insulin;
13-8 (3) subject to Subsection (c), a drug or medicine,
13-9 without regard to whether it is prescribed or dispensed by a
13-10 licensed practitioner of the healing arts[, that is labeled with a
13-11 national drug code issued by the federal Food and Drug
13-12 Administration];
13-13 (4) a hypodermic syringe or needle;
13-14 (5) a brace; hearing aid or audio loop; orthopedic,
13-15 dental, or prosthetic device; ileostomy, colostomy, or ileal
13-16 bladder appliance; or supplies or replacement parts for the listed
13-17 items;
13-18 (6) a therapeutic appliance, device, and any related
13-19 supplies specifically designed for those products, if dispensed or
13-20 prescribed by a licensed practitioner of the healing arts, when
13-21 those items are purchased and used by an individual for whom the
13-22 items listed in this subdivision were dispensed or prescribed;
13-23 (7) corrective lens and necessary and related
13-24 supplies, if dispensed or prescribed by an ophthalmologist or
13-25 optometrist;
13-26 (8) specialized printing or signalling equipment used
14-1 by the deaf for the purpose of enabling the deaf to communicate
14-2 through the use of an ordinary telephone and all materials, paper,
14-3 and printing ribbons used in that equipment;
14-4 (9) a braille wristwatch, braille writer, braille
14-5 paper and braille electronic equipment that connects to computer
14-6 equipment, and the necessary adaptive devices and adaptive computer
14-7 software;
14-8 (10) each of the following items if purchased for use
14-9 by the blind to enable them to function more independently: a
14-10 slate and stylus, print enlarger, light probe, magnifier, white
14-11 cane, talking clock, large print terminal, talking terminal, or
14-12 harness for guide dog;
14-13 (11) hospital beds;
14-14 (12) blood glucose monitoring test strips; [and]
14-15 (13) an adjustable eating utensil used to facilitate
14-16 independent eating if purchased for use by a person, including a
14-17 person who is elderly or physically disabled, has had a stroke, or
14-18 is a burn victim, who does not have full use or control of the
14-19 person's hands or arms; and
14-20 (14) subject to Subsection (d), a dietary supplement.
14-21 (b) Each of the following items is exempted from the tax
14-22 imposed by this chapter if the item is used by a person who is deaf
14-23 to enable the person to function more independently:
14-24 (1) a light signal and device to adapt items such as
14-25 telecommunication devices for the deaf (TDDs), telephones,
14-26 doorbells, and smoke alarms; and
15-1 (2) adaptive devices or adaptive software for
15-2 computers used by persons who are deaf.
15-3 (c) A product is a drug or medicine for purposes of this
15-4 section if:
15-5 (1) the product:
15-6 (A) is intended for use in the diagnosis, cure,
15-7 mitigation, treatment, or prevention of disease, illness, injury,
15-8 or pain;
15-9 (B) is applied to the human body or is a product
15-10 that a human ingests or inhales;
15-11 (C) is not an appliance or device; and
15-12 (D) is not food; or
15-13 (2) the product is labeled or required to be labeled
15-14 with a "Drug Facts" panel in accordance with regulations of the
15-15 federal Food and Drug Administration.
15-16 (d) A product is a dietary supplement for purposes of this
15-17 section if:
15-18 (1) the product:
15-19 (A) contains one or more vitamins, minerals,
15-20 herbs, amino acids, or substances that are intended to increase
15-21 caloric intake;
15-22 (B) is not represented as food or the sole item
15-23 of a meal or the diet; and
15-24 (C) is labeled "dietary supplement" or
15-25 "supplement"; or
15-26 (2) the product is labeled or required to be labeled
16-1 with a "Supplement Facts" panel in accordance with regulations of
16-2 the federal Food and Drug Administration.
16-3 SECTION 21. Subsection (a), Section 151.317, Tax Code, is
16-4 amended to read as follows:
16-5 (a) Subject to Subsection (d), gas and electricity are
16-6 exempted from the taxes imposed by this chapter when sold for:
16-7 (1) residential use;
16-8 (2) use in powering equipment exempt under Section
16-9 151.318 or 151.3185 by a person processing tangible personal
16-10 property for sale as tangible personal property, other than
16-11 preparation or storage of food for immediate consumption;
16-12 (3) use in lighting, cooling, and heating in the
16-13 manufacturing area during the actual manufacturing or processing of
16-14 tangible personal property for sale as tangible personal property,
16-15 other than preparation or storage of food for immediate
16-16 consumption;
16-17 (4) use directly in exploring for, producing, or
16-18 transporting, a material extracted from the earth;
16-19 (5) use in agriculture, including dairy or poultry
16-20 operations and pumping for farm or ranch irrigation;
16-21 (6) use directly in electrical processes, such as
16-22 electroplating, electrolysis, and cathodic protection;
16-23 (7) use directly in the off-wing processing, overhaul,
16-24 or repair of a jet turbine engine or its parts for a certificated
16-25 or licensed carrier of persons or property;
16-26 (8) use directly in providing, under contracts with or
17-1 on behalf of the United States government or foreign governments,
17-2 defense or national security-related electronics, classified
17-3 intelligence data processing and handling systems, or
17-4 defense-related platform modifications or upgrades; [or]
17-5 (9) a direct or indirect use, consumption, or loss of
17-6 electricity by an electric utility engaged in the purchase of
17-7 electricity for resale; or
17-8 (10) use in timber operations, including pumping for
17-9 irrigation of timberland.
17-10 SECTION 22. Subsections (a) and (t), Section 151.318, Tax
17-11 Code, are amended to read as follows:
17-12 (a) The following items are exempted from the taxes imposed
17-13 by this chapter if sold, leased, or rented to, or stored, used, or
17-14 consumed by a manufacturer:
17-15 (1) tangible personal property that will become an
17-16 ingredient or component part of tangible personal property
17-17 manufactured, processed, or fabricated for ultimate sale;
17-18 (2) tangible personal property directly used or
17-19 consumed in or during the actual manufacturing, processing, or
17-20 fabrication of tangible personal property for ultimate sale if the
17-21 use or consumption of the property is necessary or essential to the
17-22 manufacturing, processing, or fabrication operation and directly
17-23 makes or causes a chemical or physical change to:
17-24 (A) the product being manufactured, processed,
17-25 or fabricated for ultimate sale; or
17-26 (B) any intermediate or preliminary product that
18-1 will become an ingredient or component part of the product being
18-2 manufactured, processed, or fabricated for ultimate sale;
18-3 (3) services performed directly on the product being
18-4 manufactured prior to its distribution for sale and for the purpose
18-5 of making the product more marketable;
18-6 (4) actuators, steam production equipment and its
18-7 fuel, in-process flow through tanks, cooling towers, generators,
18-8 heat exchangers, transformers and the switches, breakers, capacitor
18-9 banks, regulators, relays, reclosers, fuses, interruptors,
18-10 reactors, arrestors, resistors, insulators, instrument
18-11 transformers, and telemetry units that are related to the
18-12 transformers, electronic control room equipment, computerized
18-13 control units, pumps, compressors, and hydraulic units, that are
18-14 used to power, supply, support, or control equipment that qualifies
18-15 for exemption under Subdivision (2) or (5) or to generate
18-16 electricity, chilled water, or steam for ultimate sale;
18-17 transformers located at an electric generating facility that
18-18 increase the voltage of electricity generated for ultimate sale,
18-19 the electrical cable that carries the electricity from the electric
18-20 generating equipment to the step-up transformers, and the switches,
18-21 breakers, capacitor banks, regulators, relays, reclosers, fuses,
18-22 interruptors, reactors, arrestors, resistors, insulators,
18-23 instrument transformers, and telemetry units that are related to
18-24 the step-up transformers; and transformers that decrease the
18-25 voltage of electricity generated for ultimate sale and the
18-26 switches, breakers, capacitor banks, regulators, relays, reclosers,
19-1 fuses, interruptors, reactors, arrestors, resistors, insulators,
19-2 instrument transformers, and telemetry units that are related to
19-3 the step-down transformers;
19-4 (5) tangible personal property used or consumed in the
19-5 actual manufacturing, processing, or fabrication of tangible
19-6 personal property for ultimate sale if the use or consumption of
19-7 the property is necessary and essential to a pollution control
19-8 process;
19-9 (6) lubricants, chemicals, chemical compounds, gases,
19-10 or liquids that are used or consumed during the actual
19-11 manufacturing, processing, or fabrication of tangible personal
19-12 property for ultimate sale if their use or consumption is necessary
19-13 and essential to prevent the decline, failure, lapse, or
19-14 deterioration of equipment exempted by this section;
19-15 (7) gases used on the premises of a manufacturing
19-16 plant to prevent contamination of raw material or product, or to
19-17 prevent a fire, explosion, or other hazardous or environmentally
19-18 damaging situation at any stage in the manufacturing process or in
19-19 loading or storage of the product or raw material on premises;
19-20 (8) tangible personal property used or consumed during
19-21 the actual manufacturing, processing, or fabrication of tangible
19-22 personal property for ultimate sale if the use or consumption of
19-23 the property is necessary and essential to a quality control
19-24 process that tests tangible personal property that is being
19-25 manufactured, processed, or fabricated for ultimate sale;
19-26 (9) safety apparel or work clothing that is used
20-1 during the actual manufacturing, processing, or fabrication of
20-2 tangible personal property for ultimate sale if:
20-3 (A) the manufacturing process would not be
20-4 possible without the use of the apparel or clothing; and
20-5 (B) the apparel or clothing is not resold to the
20-6 employee;
20-7 (10) tangible personal property used or consumed in
20-8 the actual manufacturing, processing, or fabrication of tangible
20-9 personal property for ultimate sale if the use or consumption of
20-10 the property is necessary and essential to comply with federal,
20-11 state, or local laws or rules that establish requirements related
20-12 to public health; and
20-13 (11) tangible personal property specifically installed
20-14 to:
20-15 (A) reduce water use and wastewater flow volumes
20-16 from the manufacturing, processing, fabrication, or repair
20-17 operation;
20-18 (B) reuse and recycle wastewater streams
20-19 generated within the manufacturing, processing, fabrication, or
20-20 repair operation; or
20-21 (C) treat wastewater from another industrial or
20-22 municipal source for the purpose of replacing existing freshwater
20-23 sources in the manufacturing, processing, fabrication, or repair
20-24 operation.
20-25 (t) In addition to the other items exempted under this
20-26 section, pre-press machinery, equipment, and supplies, including
21-1 computers, cameras, photographic props, film, film developing
21-2 chemicals, veloxes, plate-making machinery, plate metal, litho
21-3 negatives, color separation negatives, proofs of color negatives,
21-4 production art work, and typesetting or composition proofs, that
21-5 are necessary and essential to and used in connection with the
21-6 printing process are exempted from the tax imposed by this chapter
21-7 if they are purchased by a person engaged in:
21-8 (1) printing or imprinting tangible personal property
21-9 for sale; or
21-10 (2) producing a publication for the dissemination of
21-11 news of a general character and of a general interest that is
21-12 printed on newsprint and distributed to the general public free of
21-13 charge at a daily, weekly, or other short interval.
21-14 SECTION 23. Subchapter H, Chapter 151, Tax Code, is amended
21-15 by adding Section 151.3181 to read as follows:
21-16 Sec. 151.3181. DIVERGENT USE OF PROPERTY USED IN
21-17 MANUFACTURING. (a) In this section:
21-18 (1) "Divergent use" means the use of property in a
21-19 manner or for a purpose other than the manner or purpose that
21-20 qualified the sale, lease, rental, use, or other consumption of the
21-21 property for exemption under Section 151.318.
21-22 (2) "Property" means tangible personal property
21-23 regardless of whether the tangible personal property is permanently
21-24 affixed to or incorporated into realty after its purchase.
21-25 (b) Divergent use of property exempted under Section 151.318
21-26 will not result in sales and use tax being due on the property if
22-1 the divergent use occurs after the fourth anniversary of the date
22-2 the property is purchased.
22-3 (c) Except as provided by Subsection (d), divergent use of
22-4 property exempted under Section 151.318 that occurs during any
22-5 month before the fourth anniversary of the date the property is
22-6 purchased results in sales and use tax being due for that month.
22-7 The amount of the sales and use tax due for a month is equal to
22-8 1/48 of the purchase price of the property multiplied by the
22-9 percentage of divergent use during that month multiplied by the
22-10 sales and use tax rate applicable at the time of purchase.
22-11 (d) Divergent use of property exempted under Section 151.318
22-12 that occurs during a month before the fourth anniversary of the
22-13 date the property is purchased does not result in sales and use tax
22-14 being due for that month if the percentage of divergent use during
22-15 that month does not exceed five percent of the total use of the
22-16 property that month.
22-17 (e) The amount of divergent use during a month is:
22-18 (1) the total time the property operates for a
22-19 divergent use during a month, measured in hours; or
22-20 (2) the total output of the property during divergent
22-21 use during a month, measured in a manner applicable to that
22-22 property.
22-23 (f) The total use of property is:
22-24 (1) the total time the property operates during a
22-25 month, measured in hours; or
22-26 (2) the total output of the property during a month,
23-1 measured in a manner applicable to that property.
23-2 (g) The percentage of divergent use for a month is
23-3 determined by:
23-4 (1) dividing the amount of divergent use determined
23-5 under Subsection (e)(1) by the amount of total use of the property
23-6 determined under Subsection (f)(1); or
23-7 (2) dividing the amount of divergent use determined
23-8 under Subsection (e)(2) by the amount of total use of the property
23-9 determined under Subsection (f)(2).
23-10 SECTION 24. Section 151.3185, Tax Code, is amended by adding
23-11 Subsections (e) and (f) to read as follows:
23-12 (e) The sale of a motion picture, video, or audio master by
23-13 the producer of the master is exempt from the taxes imposed by this
23-14 chapter.
23-15 (f) Tangible personal property that is sold to an entity to
23-16 which 47 C.F.R. Section 73.624(b) applies is exempt from the taxes
23-17 imposed by this chapter if the property is necessary for the entity
23-18 to comply with 47 C.F.R. Section 73.682(d).
23-19 SECTION 25. Subsection (b), Section 151.319, Tax Code, is
23-20 amended to read as follows:
23-21 (b) A transaction involving a sale of a newspaper that has
23-22 been produced, fabricated, or printed to the special order of a
23-23 customer is exempted from the taxes imposed by this chapter if:
23-24 (1) the customer is responsible for gathering
23-25 substantially all of the information contained in the newspaper and
23-26 for formulating the design, layout, and format of the newspaper;
24-1 and
24-2 (2) the customer would be entitled to the exemption
24-3 provided by Section 151.318(t) [Subsection (d) of this section] if
24-4 the customer had a printing facility capable of processing and
24-5 printing the newspaper and printed and processed the newspaper.
24-6 SECTION 26. Section 152.002, Tax Code, is amended by adding
24-7 Subsection (e) to read as follows:
24-8 (e) A person who is a motor vehicle owner, is in the
24-9 business of renting motor vehicles, and holds a permit may deduct
24-10 the fair market value of a replaced motor vehicle that is titled to
24-11 another person if:
24-12 (1) either person:
24-13 (A) holds a beneficial ownership interest in the
24-14 other person of at least 80 percent; or
24-15 (B) acquires all of its vehicles exclusively
24-16 from franchised dealers whose franchisor shares common ownership
24-17 with the other person; and
24-18 (2) the replaced motor vehicle is offered for sale.
24-19 SECTION 27. Section 152.041, Tax Code, is amended by
24-20 amending Subsections (c) and (d) and adding Subsection (f) to read
24-21 as follows:
24-22 (c) Except as provided by Subsection (f) and Section
24-23 152.047, the tax imposed by Section 152.021 [of this code] is due
24-24 on the 20th working day after the date [day that] the motor vehicle
24-25 is delivered to the purchaser.
24-26 (d) Except as provided by Subsection (f), the [The] tax
25-1 imposed by Section 152.022 [of this code] is due on the 20th
25-2 working day after the date [day that] the motor vehicle is brought
25-3 into this state.
25-4 (f) The tax imposed by Section 152.021 or 152.022 on a motor
25-5 vehicle designed for commercial use is due on the 20th working day
25-6 after the date the motor vehicle is equipped with a body or other
25-7 equipment that enables the motor vehicle to be eligible to be
25-8 registered under the Transportation Code.
25-9 SECTION 28. Subsection (a), Section 152.047, Tax Code, is
25-10 amended to read as follows:
25-11 (a) Except as inconsistent with this chapter and rules
25-12 adopted under this chapter, the seller of a motor vehicle shall
25-13 report and pay the tax imposed on a seller-financed sale to the
25-14 comptroller on the seller's receipts from seller-financed sales in
25-15 the same manner as the sales tax is reported and paid by a retailer
25-16 under Sections 151.401, 151.402, 151.405, 151.406, 151.409,
25-17 151.423, 151.424, and 151.425 [Chapter 151].
25-18 SECTION 29. Section 152.091, Tax Code, is amended by adding
25-19 Subsection (d) to read as follows:
25-20 (d) For purposes of this section, a machine is used
25-21 "primarily for timber operations" if the machine is a
25-22 self-propelled motor vehicle that is specially adapted to perform a
25-23 specialized function in the production of timber, including land
25-24 preparation, planting, maintenance, and gathering of trees commonly
25-25 grown for commercial timber. The term does not include a
25-26 self-propelled motor vehicle used to transport timber or timber
26-1 products.
26-2 SECTION 30. Subdivision (25), Section 153.001, Tax Code, is
26-3 amended to read as follows:
26-4 (25) "Supplier" means a person who:
26-5 (A) refines, distills, manufactures, produces,
26-6 or blends for sale or distribution diesel fuel in this state;
26-7 (B) imports or exports diesel fuel other than in
26-8 the fuel supply tanks of motor vehicles;
26-9 (C) sells or delivers diesel fuel in bulk
26-10 quantities to dealers, dyed diesel fuel bonded users, agricultural
26-11 bonded users, bulk users, aviation fuel dealers, or other
26-12 suppliers; or
26-13 (D) is engaged in the business of selling or
26-14 delivering diesel fuel in bulk quantities to consumers for
26-15 nonhighway uses.
26-16 SECTION 31. Subsection (i), Section 153.018, Tax Code, is
26-17 amended to read as follows:
26-18 (i) Each terminal or bulk plant shall post a notice in a
26-19 conspicuous location proximate to the point of receipt of shipping
26-20 papers that describes the duties of importers and exporters under
26-21 this section. The comptroller may prescribe the language, type,
26-22 style, and format of the notice.
26-23 SECTION 32. Subsection (c), Section 153.115, Tax Code, is
26-24 amended to read as follows:
26-25 (c) A permitted interstate trucker is entitled to deduct
26-26 one-half of one percent of the taxable gallons of gasoline on
27-1 timely payment of the taxes to the state for the expense of
27-2 recordkeeping, reporting, and remitting the tax.
27-3 SECTION 33. Subsection (a), Section 153.117, Tax Code, is
27-4 amended to read as follows:
27-5 (a) A distributor shall keep:
27-6 (1) a record showing the number of gallons of:
27-7 (A) all gasoline inventories on hand at the
27-8 first of each month;
27-9 (B) all gasoline refined, compounded, or
27-10 blended;
27-11 (C) all gasoline purchased or received, showing
27-12 the name of the seller and date of each purchase or receipt;
27-13 (D) all gasoline sold, distributed, or used,
27-14 showing the name of the purchaser and the date of the sale or use;
27-15 and
27-16 (E) all gasoline lost by fire, theft, or
27-17 accident; and
27-18 (2) an itemized statement showing by load the number
27-19 of gallons of all gasoline:
27-20 (A) received during the preceding calendar month
27-21 for export and the location of the loading;
27-22 (B) exported from this state by destination
27-23 state or country; and
27-24 (C) imported during the preceding calendar month
27-25 by [destination] state or country of origin.
27-26 SECTION 34. Subsection (a), Section 153.119, Tax Code, is
28-1 amended to read as follows:
28-2 (a) A person who exports, sells to the federal government,
28-3 to a public school district in this state, or to a commercial
28-4 transportation company for exclusive use in providing public school
28-5 transportation services to a school district under Section 34.008,
28-6 Education Code, without having added the amount of the tax imposed
28-7 by this chapter to his selling price, loses by fire, theft, or
28-8 accident, or uses gasoline for the purpose of operating or
28-9 propelling a motorboat, tractor used for agricultural purposes, or
28-10 stationary engine, or for another purpose except in a vehicle
28-11 operated or intended to be operated on the public highways of this
28-12 state, and who has paid the tax imposed on gasoline by this chapter
28-13 either directly or indirectly is, when the person has complied with
28-14 the invoice and filing provisions of this section and the rules of
28-15 the comptroller, entitled to reimbursement of the tax paid by him,
28-16 less [a filing fee and] any amount allowed distributors under
28-17 Section 153.105(e) [of this code]. A public school district that
28-18 has paid the tax imposed under this chapter on gasoline used by the
28-19 district or a commercial transportation company that has paid the
28-20 tax imposed under this chapter on gasoline used by the company
28-21 exclusively to provide public school transportation services to a
28-22 school district under Section 34.008, Education Code, is entitled
28-23 to reimbursement of the amount of the tax paid in the same manner
28-24 and subject to the same procedures as other exempted users.
28-25 SECTION 35. Section 153.122, Tax Code, is amended to read as
28-26 follows:
29-1 Sec. 153.122. GASOLINE TAX REFUND PAYMENT [AND FILING FEE].
29-2 [(a)] After examination of the refund claim, the comptroller
29-3 before issuing a refund warrant shall deduct from the amount of the
29-4 refund[:]
29-5 [(1)] the two percent deducted originally by the
29-6 distributor on the first sale or distribution of the gasoline[; and]
29-7 [(2) $1.50 as a filing fee.]
29-8 [(b) The filing fees shall be set aside for the use and
29-9 benefit of the comptroller in the administration and enforcement of
29-10 this section. All filing fees shall be paid into the state
29-11 treasury and shall be paid out on vouchers and warrants in the
29-12 manner prescribed by law].
29-13 SECTION 36. Section 153.205, Tax Code, is amended to read as
29-14 follows:
29-15 Sec. 153.205. STATEMENT FOR PURCHASE OF DIESEL FUEL TAX
29-16 FREE. (a) The first sale or use of diesel fuel in this state is
29-17 taxable, except that sales of dyed diesel fuel, or of undyed diesel
29-18 fuel if the fuel will be used for an agricultural nonhighway
29-19 purpose, may be made without collecting the tax if the purchaser
29-20 furnishes to a permitted supplier a signed statement, including an
29-21 end user number or agricultural [user] exemption number issued by
29-22 the comptroller. A person who wants to use a signed statement to
29-23 purchase dyed diesel fuel must apply to the comptroller for an end
29-24 user number to be used in conjunction with a signed statement. A
29-25 person who wants to use a signed statement to purchase dyed or
29-26 undyed diesel fuel for an agricultural nonhighway purpose must
30-1 apply to the comptroller for an agricultural exemption number to be
30-2 used in conjunction with a signed statement. A supplier may not
30-3 make a tax-free sale of any diesel fuel to a purchaser using a
30-4 signed statement unless the purchaser has an end user number or
30-5 agricultural exemption number issued by the comptroller under this
30-6 section [that stipulates that:]
30-7 [(1) the purchaser does not operate any diesel-powered
30-8 motor vehicles on the public highway;]
30-9 [(2) all of the diesel fuel will be consumed by the
30-10 purchaser and no diesel fuel purchased on a signed statement will
30-11 be resold; and]
30-12 [(3) none of the diesel fuel purchased in this state
30-13 will be delivered or permitted by the purchaser to be delivered
30-14 into fuel supply tanks of motor vehicles].
30-15 (b) A sale of dyed diesel fuel may be made without
30-16 collecting the tax if the purchaser furnishes to a permitted
30-17 supplier a signed statement, including an end user number issued by
30-18 the comptroller, that stipulates that:
30-19 (1) none of the diesel fuel purchased on the signed
30-20 statement is of a type that may legally be used on the public
30-21 highway;
30-22 (2) all of the dyed diesel fuel purchased on the
30-23 signed statement will be consumed by the purchaser and will not be
30-24 resold; and
30-25 (3) none of the dyed diesel fuel purchased on the
30-26 signed statement will be delivered or permitted to be delivered
31-1 into the fuel supply tank of a motor vehicle operated on the public
31-2 highways of this state.
31-3 (c) A sale of dyed or undyed diesel fuel for an agricultural
31-4 nonhighway use may be made without collecting the tax if the
31-5 purchaser furnishes to a permitted supplier a signed statement,
31-6 including an agricultural exemption number issued by the
31-7 comptroller, that stipulates that:
31-8 (1) all of the dyed and undyed diesel fuel purchased
31-9 on the signed statement will be used exclusively in agricultural
31-10 nonhighway equipment;
31-11 (2) all of the dyed and undyed diesel fuel purchased
31-12 on the signed statement will be consumed by the purchaser and will
31-13 not be resold; and
31-14 (3) none of the dyed or undyed diesel fuel purchased
31-15 on the signed statement will be delivered or permitted to be
31-16 delivered into the fuel supply tank of a motor vehicle operated on
31-17 the public highways of this state.
31-18 (d) A person may not make a tax-free purchase of any diesel
31-19 fuel under this section using a signed statement:
31-20 (1) for the purchase of more than 3,000 gallons of
31-21 dyed or undyed diesel fuel in a single transaction or delivery; or
31-22 (2) in a calendar month in which the person has
31-23 previously purchased more than 10,000 gallons of dyed or undyed
31-24 diesel fuel from all sources.
31-25 (e) Any gallons purchased in excess of the limitations
31-26 prescribed by Subsection (d) constitute a taxable purchase. The
32-1 purchaser paying the tax on dyed or undyed diesel fuel in excess of
32-2 the limitations prescribed by Subsection (d) may claim a refund of
32-3 the tax paid on any dyed or undyed diesel fuel used for nonhighway
32-4 purposes under Section 153.222.
32-5 (f) A supplier may not make a tax-free sale of any diesel
32-6 fuel under this section to a purchaser using a signed statement:
32-7 (1) for the sale of more than 3,000 gallons of dyed or
32-8 undyed diesel fuel in a single transaction or delivery; or
32-9 (2) in a calendar month in which the supplier has
32-10 previously sold more than 10,000 gallons of dyed or undyed diesel
32-11 fuel to the purchaser.
32-12 (g) Any gallons sold in excess of the limitations prescribed
32-13 by Subsection (f) constitute a taxable sale. The purchaser paying
32-14 the tax on dyed or undyed diesel fuel in excess of the limitations
32-15 prescribed by Subsection (f) may claim a refund of the tax paid on
32-16 any dyed or undyed diesel fuel used for nonhighway purposes under
32-17 Section 153.222.
32-18 (h) [(c)] The signed statement and end user number or
32-19 agricultural [user] exemption number from the purchaser as provided
32-20 by this section relieves the permitted supplier from the burden of
32-21 proof that the sale of dyed diesel fuel or of undyed diesel fuel
32-22 for an agricultural nonhighway purpose was not taxable to the
32-23 purchaser and remains in effect unless:
32-24 (1) the statement is revoked in writing by the
32-25 purchaser or supplier; or
32-26 (2) the comptroller notifies the supplier in writing
33-1 that the purchaser may no longer make tax-free purchases[; or]
33-2 [(3) the supplier is put on notice by making taxable
33-3 sales of diesel fuel to a purchaser who has previously submitted a
33-4 signed statement to this supplier].
33-5 (i) [(d) A taxable sale to a person who has previously
33-6 submitted a signed statement creates a rebuttable presumption that
33-7 the supplier had reasonable notice that all subsequent sales should
33-8 have been taxable.]
33-9 [(e)] A taxable use of any part of the dyed or undyed diesel
33-10 fuel purchased under a signed statement shall, in addition to any
33-11 criminal penalty, forfeit the right of the person to purchase dyed
33-12 or undyed diesel fuel tax free for a period of one year from the
33-13 date of the offense, and any tax, interest, and penalty found to be
33-14 due through false or erroneous execution or continuance of a
33-15 promissory statement by the purchaser, if assessed to the supplier,
33-16 is a debt of the purchaser to the supplier until paid, and is
33-17 recoverable at law in the same manner as the purchase price of the
33-18 fuel. The person may, however, claim a refund of the tax paid on
33-19 any undyed diesel fuel used for nonhighway purposes under Section
33-20 153.222.
33-21 [(f) The statement must be signed by the purchaser or his
33-22 representative.]
33-23 [(g) The comptroller's regulations may allow separate
33-24 operating divisions of corporations to give separate signed
33-25 statements as if they were different legal entities.]
33-26 [(h) The comptroller may promulgate necessary forms and
34-1 rules to administer and enforce this section.]
34-2 [(i) A permitted supplier may not make a tax-free sale of
34-3 dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
34-4 to a purchaser using a signed statement:]
34-5 [(1) for the sale of more than 3,000 gallons of dyed
34-6 or undyed diesel fuel in a single transaction; or]
34-7 [(2) in a calendar month in which the supplier has
34-8 previously sold more than 10,000 gallons of dyed or undyed diesel
34-9 fuel to the purchaser.]
34-10 [(j)(1) A sale of dyed diesel fuel, or undyed diesel fuel
34-11 for agricultural purposes, may be made without collecting tax from
34-12 a purchaser who operates one or more motor vehicles on the public
34-13 highway and who furnishes to a permitted supplier a signed
34-14 statement and end user number or agricultural user exemption number
34-15 only as provided in this subsection.]
34-16 [(2) The statement must stipulate that all the dyed or
34-17 undyed diesel fuel will be consumed by the purchaser for purposes
34-18 other than operating a motor vehicle on the public highway and that
34-19 no dyed or undyed diesel fuel purchased on a signed statement will
34-20 be resold or delivered into the fuel supply tanks of a motor
34-21 vehicle.]
34-22 [(3) Diesel fuel which may be sold without collection
34-23 of tax under this subsection must be of a type that may not be
34-24 legally used by the purchaser for the operation of a motor vehicle
34-25 on the public highway under state or federal law.]
34-26 [(4) Subsections (a), (c)(3), and (d) of this section
35-1 do not apply to sales of fuel under this subsection.]
35-2 [(k) A person who wants to use a signed statement to
35-3 purchase dyed diesel fuel must apply to the comptroller for an end
35-4 user number to be used in conjunction with a signed statement. A
35-5 person who wants to use a signed statement to purchase dyed or
35-6 undyed diesel fuel for agricultural purposes must apply to the
35-7 comptroller for an agricultural user exemption number to be used in
35-8 conjunction with a signed statement. A person may not make a
35-9 tax-free sale of any diesel fuel to a purchaser using a signed
35-10 statement unless the purchaser has an end user number or
35-11 agricultural user exemption number issued by the comptroller under
35-12 this subsection.]
35-13 SECTION 37. Subsections (c) and (i), Section 153.206, Tax
35-14 Code, are amended to read as follows:
35-15 (c) A dyed diesel fuel bonded user, agricultural bonded
35-16 user, or other user, except a diesel tax prepaid user, shall report
35-17 and pay to the state the tax at the rate imposed on each gallon of
35-18 diesel fuel delivered by him into the fuel supply tanks of a motor
35-19 vehicle, unless the tax has been paid to a permitted supplier or a
35-20 dealer, or, as a diesel tax prepaid user, the tax has been prepaid
35-21 directly to the comptroller.
35-22 (i) A dyed diesel fuel bonded user, an agricultural bonded
35-23 user, or a permitted interstate trucker is entitled to deduct
35-24 one-half of one percent of the taxable gallons of diesel fuel on
35-25 timely payment of the taxes to this state for the expense of
35-26 recordkeeping, reporting, and remitting the tax.
36-1 SECTION 38. The heading to Section 153.217, Tax Code, is
36-2 amended to read as follows:
36-3 Sec. 153.217. LIST OF SUPPLIERS, DYED DIESEL FUEL BONDED
36-4 USERS, AGRICULTURAL BONDED USERS, AVIATION FUEL DEALERS, AND DIESEL
36-5 FUEL JOBBERS.
36-6 SECTION 39. Subsection (j), Section 153.219, Tax Code, is
36-7 amended to read as follows:
36-8 (j) A supplier shall keep:
36-9 (1) an itemized statement showing by load the number
36-10 of gallons of all diesel fuel received during the preceding
36-11 calendar month for export;
36-12 (2) an itemized statement showing by load the number
36-13 of gallons of all diesel fuel exported from this state by
36-14 destination state or country;
36-15 (3) an itemized statement showing by load the number
36-16 of gallons of all diesel fuel imported during the preceding
36-17 calendar month by [destination] state or country of origin;
36-18 (4) an itemized statement differentiating between dyed
36-19 and undyed diesel fuel and showing by purchaser, end user number,
36-20 or agricultural [user] exemption number the number of gallons of
36-21 dyed and undyed diesel fuel sold tax free to a purchaser using a
36-22 signed statement in accordance with Section 153.205; and
36-23 (5) an itemized statement showing by purchaser and
36-24 permit number the number of gallons of dyed and undyed diesel fuel
36-25 sold tax free to dyed diesel fuel bonded users and agricultural
36-26 bonded users.
37-1 SECTION 40. Subsections (a) and (c), Section 153.221, Tax
37-2 Code, are amended to read as follows:
37-3 (a) On or before the 25th day of each month, a supplier, a
37-4 dealer required to collect the tax under Section 153.206(b), or a
37-5 dyed diesel fuel bonded user, agricultural bonded user, or other
37-6 user required to pay the tax under Section 153.206(c) shall file a
37-7 report of diesel fuel transactions or of diesel fuel delivered by a
37-8 dyed diesel fuel bonded user, agricultural bonded user, or other
37-9 user into the fuel tank of a motor vehicle owned or operated by the
37-10 user and such supplements as the comptroller may require and remit
37-11 the amount of tax required to be collected or to be paid during the
37-12 preceding month. A report must be filed on a form or in a manner
37-13 provided by the comptroller and contain information required by the
37-14 comptroller, showing complete and detailed information of diesel
37-15 fuel transactions or use during the preceding month. A supplier
37-16 required to file a report under this section who has not sold,
37-17 used, or distributed any diesel fuel during the reporting period
37-18 shall file with the comptroller the report setting forth the facts
37-19 or information. The failure of a supplier, dealer, or dyed diesel
37-20 fuel bonded user, agricultural bonded user, or other user to obtain
37-21 forms or software from the comptroller is no excuse for the failure
37-22 to file a report. The report must be executed by the supplier,
37-23 dealer, or user, or his representative, and is subject to the
37-24 penalties provided in this chapter.
37-25 (c) No report is required to be filed by:
37-26 (1) an aviation fuel dealer;
38-1 (2) a trip permit user;
38-2 (3) a diesel tax prepaid user;
38-3 (4) a person issuing signed statements; or
38-4 (5) [a common or contract carrier; or]
38-5 [(6)] a diesel fuel jobber.
38-6 SECTION 41. Subsection (a), Section 153.222, Tax Code, is
38-7 amended to read as follows:
38-8 (a) A dealer or diesel fuel jobber who has paid tax on
38-9 diesel fuel that has been used or sold for use by the dealer or
38-10 diesel fuel jobber for any purpose other than propelling a motor
38-11 vehicle on the public highways of this state or that has been sold
38-12 to the United States or a public school district in this state for
38-13 the exclusive use of the purchaser, or to a commercial
38-14 transportation company for exclusive use in providing public school
38-15 transportation services to a school district under Section 34.008,
38-16 Education Code, without adding the amount of the tax to his selling
38-17 price, and a user who has paid tax on any diesel fuel that has been
38-18 used by him for a purpose other than propelling a motor vehicle on
38-19 the public highways, is a public school district and has paid the
38-20 tax on diesel fuel purchased for its exclusive use, is a commercial
38-21 transportation company and has paid the tax on diesel fuel used by
38-22 the company exclusively to provide public school transportation
38-23 services to a school district under Section 34.008, Education Code,
38-24 or is a person who has paid tax on diesel fuel used in a commercial
38-25 motor vehicle as provided by Section 153.203(10) may file a claim
38-26 for a refund of taxes paid, less the deduction allowed vendors [and
39-1 a filing fee].
39-2 SECTION 42. Section 153.225, Tax Code, is amended to read as
39-3 follows:
39-4 Sec. 153.225. DIESEL FUEL TAX REFUND PAYMENTS [AND FILING
39-5 FEE]. [(a)] After examination and approval of the refund claim,
39-6 the comptroller before issuing a refund warrant shall deduct from
39-7 the amount of the refund payment[:]
39-8 [(1)] the 2 percent deducted originally by the
39-9 supplier on the sale or delivery of the diesel fuel[; and]
39-10 [(2) $1.50 as a filing fee.]
39-11 [(b) The filing fees shall be set aside for the use and
39-12 benefit of the comptroller in the administration and enforcement of
39-13 the provisions of this chapter, and for payment of expenses in
39-14 furnishing the claim forms and other forms. All filing fees shall
39-15 be paid into the state treasury and shall be paid out on vouchers
39-16 and warrants in the manner prescribed by law].
39-17 SECTION 43. Subsections (c) and (d), Section 153.308, Tax
39-18 Code, are amended to read as follows:
39-19 (c) The tax on one percent of the taxable gallons of
39-20 liquefied gas sold in this state shall be allocated to the
39-21 permitted dealer making the sale for the expense of collecting,
39-22 accounting for, reporting, and timely remitting the taxes collected
39-23 and keeping the records. The allocation allowance shall be
39-24 deducted by the permitted dealers in the payment to the state.
39-25 (d) The tax of one-half of one percent of the taxable
39-26 gallons of liquefied gas used in this state by persons permitted as
40-1 interstate truckers shall be allocated to the interstate trucker
40-2 making the use of the liquefied gas for the expense of accounting
40-3 for, reporting, and timely remitting the taxes due.
40-4 SECTION 44. Subsection (c), Section 153.311, Tax Code, is
40-5 amended to read as follows:
40-6 (c) A permitted interstate trucker is entitled to a refund
40-7 of the amount of the Texas liquefied gas tax paid on each gallon of
40-8 liquefied gas subsequently used outside this state. On
40-9 verification by the comptroller that the interstate trucker's
40-10 report was timely filed with all information required, the
40-11 comptroller [he] shall issue a warrant to the interstate trucker
40-12 for the amount of the refund less the one percent deducted
40-13 originally by the permitted dealer making the sale [and a filing
40-14 fee of $1.50]. Failure to file an interstate trucker report by the
40-15 25th of the month following the end of a calendar quarter forfeits
40-16 the right to a refund.
40-17 SECTION 45. Subdivision (13), Section 154.001, Tax Code, is
40-18 amended to read as follows:
40-19 (13) "Permit holder" means a bonded agent,
40-20 distributor, wholesaler, manufacturer, importer, or retailer
40-21 required to obtain a permit under Section 154.101.
40-22 SECTION 46. Subsections (a), (b), and (h), Section 154.101,
40-23 Tax Code, are amended to read as follows:
40-24 (a) A person may not engage in business as a distributor,
40-25 wholesaler, bonded agent, manufacturer, importer, or retailer
40-26 unless the person has applied for and received the applicable
41-1 permit from the comptroller.
41-2 (b) Each distributor, wholesaler, bonded agent,
41-3 manufacturer, importer, or retailer shall obtain a permit for each
41-4 place of business owned or operated by the distributor, wholesaler,
41-5 bonded agent, manufacturer, importer, or retailer.
41-6 (h) Permits for engaging in business as a distributor,
41-7 wholesaler, bonded agent, manufacturer, importer, or retailer shall
41-8 be governed exclusively by the provisions of this code.
41-9 SECTION 47. Subsection (a), Section 154.102, Tax Code, is
41-10 amended to read as follows:
41-11 (a) The comptroller may issue a combination permit for
41-12 cigarettes and tobacco products to a person who is a distributor,
41-13 wholesaler, bonded agent, manufacturer, importer, or retailer as
41-14 defined by this chapter and Chapter 155 for both cigarettes and
41-15 tobacco products.
41-16 SECTION 48. Subsection (a), Section 154.110, Tax Code, is
41-17 amended to read as follows:
41-18 (a) The comptroller shall issue a permit to a distributor,
41-19 wholesaler, bonded agent, manufacturer, importer, or retailer if
41-20 the comptroller:
41-21 (1) has received an application and fee, if required;
41-22 (2) believes that the applicant has complied with
41-23 Section 154.101; and
41-24 (3) determines that issuing the permit will not
41-25 jeopardize the administration and enforcement of this chapter.
41-26 SECTION 49. Subsection (a), Section 154.501, Tax Code, is
42-1 amended to read as follows:
42-2 (a) A person violates this chapter if the person:
42-3 (1) is a distributor, wholesaler, manufacturer,
42-4 importer, bonded agent, manufacturer's representative, or retailer
42-5 and fails to keep records required by this chapter;
42-6 (2) engages in the business of a bonded agent,
42-7 distributor, wholesaler, manufacturer, importer, or retailer
42-8 without a valid permit;
42-9 (3) is a distributor, wholesaler, manufacturer,
42-10 importer, bonded agent, or retailer and fails to make a report or
42-11 makes a false or incomplete report or application required by this
42-12 chapter to the comptroller; or
42-13 (4) is a person affected by this chapter and fails or
42-14 refuses to abide by or violates a provision of this chapter or a
42-15 rule adopted by the comptroller under this chapter.
42-16 SECTION 50. Subdivision (11), Section 155.001, Tax Code, is
42-17 amended to read as follows:
42-18 (11) "Permit holder" means a bonded agent,
42-19 distributor, wholesaler, manufacturer, importer, or retailer
42-20 required to obtain a permit under Section 155.041.
42-21 SECTION 51. Subsections (a), (b), and (h), Section 155.041,
42-22 Tax Code, are amended to read as follows:
42-23 (a) A person may not engage in business as a distributor,
42-24 wholesaler, bonded agent, manufacturer, importer, or retailer
42-25 unless the person has applied for and received the applicable
42-26 permit from the comptroller.
43-1 (b) Each distributor, wholesaler, bonded agent,
43-2 manufacturer, importer, or retailer shall obtain a permit for each
43-3 place of business owned or operated by the distributor, wholesaler,
43-4 bonded agent, manufacturer, importer, or retailer.
43-5 (h) Permits for engaging in business as a distributor,
43-6 wholesaler, bonded agent, manufacturer, importer, or retailer shall
43-7 be governed exclusively by the provisions of this code.
43-8 SECTION 52. Subsection (a), Section 155.048, Tax Code, is
43-9 amended to read as follows:
43-10 (a) The comptroller shall issue a permit to a distributor,
43-11 wholesaler, bonded agent, manufacturer, importer, or retailer if
43-12 the comptroller:
43-13 (1) has received an application and fee, if required;
43-14 (2) does not reject the application and deny the
43-15 permit under Section 155.0481; and
43-16 (3) determines that issuing the permit will not
43-17 jeopardize the administration and enforcement of this chapter.
43-18 SECTION 53. Section 155.111, Tax Code, is amended by adding
43-19 Subsection (d) to read as follows:
43-20 (d) If more than 50 percent of all untaxed tobacco products
43-21 received by the distributor in this state are actually sold outside
43-22 of this state, the distributor shall include in the report only
43-23 tobacco products that are sold in this state.
43-24 SECTION 54. Subsection (a), Section 155.201, Tax Code, is
43-25 amended to read as follows:
43-26 (a) A person violates this chapter if the person:
44-1 (1) is a distributor, wholesaler, manufacturer,
44-2 importer, bonded agent, manufacturer's representative, or retailer
44-3 and fails to keep records required by this chapter;
44-4 (2) engages in the business of a bonded agent,
44-5 distributor, wholesaler, manufacturer, importer, or retailer
44-6 without a valid permit;
44-7 (3) is a distributor, wholesaler, manufacturer,
44-8 importer, bonded agent, or retailer and fails to make a report
44-9 required by this chapter to the comptroller or makes a false or
44-10 incomplete report or application required by this chapter to the
44-11 comptroller; or
44-12 (4) is a person affected by this chapter and fails or
44-13 refuses to abide by or violates a provision of this chapter or a
44-14 rule adopted by the comptroller under this chapter.
44-15 SECTION 55. Section 171.076, Tax Code, is amended to read as
44-16 follows:
44-17 Sec. 171.076. EXEMPTION--COOPERATIVE CREDIT ASSOCIATION. A
44-18 cooperative credit association incorpoated under Chapter 55,
44-19 Agriculture Code, an organization organized under 12 U.S.C. Section
44-20 2071, or an agricultural credit association regulated by the Farm
44-21 Credit Administration is exempted from the franchise tax.
44-22 SECTION 56. Section 171.1032, Tax Code, is amended by
44-23 amending Subsection (a) and adding Subsection (c) to read as
44-24 follows:
44-25 (a) Except for the gross receipts of a corporation that are
44-26 subject to the provisions of Section 171.1061, in apportioning
45-1 taxable earned surplus, the gross receipts of a corporation from
45-2 its business done in this state is the sum of the corporation's
45-3 receipts from:
45-4 (1) each sale of tangible personal property if the
45-5 property is delivered or shipped to a buyer in this state
45-6 regardless of the FOB point or another condition of the sale, and
45-7 each sale of tangible personal property shipped from this state to
45-8 a purchaser in another state in which the seller is not subject to
45-9 any tax on, or measured by, net income, without regard to whether
45-10 the tax is imposed;
45-11 (2) each service performed in this state;
45-12 (3) each rental of property situated in this state;
45-13 (4) the use of a patent, copyright, trademark,
45-14 franchise, or license in this state;
45-15 (5) each sale of real property located in this state,
45-16 including royalties from oil, gas, or other mineral interests;
45-17 [and]
45-18 (6) each partnership or joint venture to the extent
45-19 provided by Subsection (c); and
45-20 (7) other business done in this state.
45-21 (c) A corporation shall include in its gross receipts
45-22 computed under Subsection (a) the corporation's share of the gross
45-23 receipts of each partnership and joint venture of which the
45-24 corporation is a part apportioned to this state as though the
45-25 corporation directly earned the receipts, including receipts from
45-26 business done with the corporation.
46-1 SECTION 57. Section 171.1051, Tax Code, is amended by
46-2 amending Subsection (a) and adding Subsection (d) to read as
46-3 follows:
46-4 (a) Except for the gross receipts of a corporation that are
46-5 subject to the provisions of Section 171.1061, in apportioning
46-6 taxable earned surplus, the gross receipts of a corporation from
46-7 its entire business is the sum of the corporation's receipts from:
46-8 (1) each sale of the corporation's tangible personal
46-9 property;
46-10 (2) each service, rental, or royalty; [and]
46-11 (3) each partnership and joint venture as provided by
46-12 Subsection (d); and
46-13 (4) other business.
46-14 (d) A corporation shall include in its gross receipts
46-15 computed under Subsection (a) the corporation's share of the gross
46-16 receipts of each partnership and joint venture of which the
46-17 corporation is a part.
46-18 SECTION 58. Section 171.106, Tax Code, is amended by adding
46-19 Subsection (h) to read as follows:
46-20 (h) A banking corporation shall exclude from the numerator
46-21 of the bank's apportionment factor interest earned on federal funds
46-22 and interest earned on securities sold under an agreement to
46-23 repurchase that are held in this state in a correspondent bank that
46-24 is domiciled in this state. In this subsection, "correspondent"
46-25 has the meaning assigned by 12 C.F.R. Section 206.2(c).
46-26 SECTION 59. Section 171.109, Tax Code, is amended by adding
47-1 Subsection (n) to read as follows:
47-2 (n) A corporation must use the equity method of accounting
47-3 when reporting an investment in a partnership or joint venture.
47-4 SECTION 60. Section 171.1121, Tax Code, is amended by adding
47-5 Subsection (e) to read as follows:
47-6 (e) A corporation's share of a partnership's gross receipts
47-7 that is included in the corporation's federal taxable income must
47-8 be used in computing the corporation's gross receipts under this
47-9 section. Unless otherwise provided by this chapter, a corporation
47-10 may not deduct costs incurred from the corporation's share of a
47-11 partnership's gross receipts. The gross receipts must be
47-12 apportioned as though the corporation directly earned them.
47-13 SECTION 61. Subsection (b), Section 171.260, Tax Code, is
47-14 amended to read as follows:
47-15 (b) The savings and loan commissioner shall appoint a
47-16 conservator under Subtitle B or C, Title 3, Finance Code, to pay
47-17 the franchise tax of a savings and loan association [corporation]
47-18 that is organized under the laws of this state and that the
47-19 commissioner certifies as being delinquent in the payment of the
47-20 association's [corporation's] franchise tax.
47-21 SECTION 62. Subsection (d), Section 171.501, Tax Code, is
47-22 amended to read as follows:
47-23 (d) The amount of a refund under this section is the lesser
47-24 of $5,000 or 25 percent of the amount of franchise tax due [taxes
47-25 paid] for any one privilege period before any other applicable
47-26 credits. For purposes of this subsection, the initial and second
48-1 periods are considered to be the same privilege period.
48-2 SECTION 63. Section 171.655, Tax Code, is amended to read as
48-3 follows:
48-4 Sec. 171.655. LIMITATION. The credit claimed for each
48-5 privilege period may not exceed 50 percent of the amount of [net]
48-6 franchise tax due for the privilege period before [after] any other
48-7 applicable tax credits.
48-8 SECTION 64. Section 171.685, Tax Code, is amended to read as
48-9 follows:
48-10 Sec. 171.685. LIMITATION. The total credits claimed under
48-11 this subchapter for a privilege period may not exceed 50 percent of
48-12 the amount of [net] franchise tax due for the privilege period
48-13 before [after] any other applicable tax credits.
48-14 SECTION 65. Subsection (b), Section 171.705, Tax Code, is
48-15 amended to read as follows:
48-16 (b) A corporation may not claim a credit in an amount that
48-17 exceeds 90 percent of the amount of tax due for the report before
48-18 any other applicable credits.
48-19 SECTION 66. Section 171.753, Tax Code, is amended to read as
48-20 follows:
48-21 Sec. 171.753. CALCULATION OF CREDIT. A corporation may
48-22 establish a credit equal to five [25] percent of the total wages
48-23 and salaries paid by the corporation for qualifying jobs during the
48-24 period upon which the tax is based.
48-25 SECTION 67. Section 171.754, Tax Code, is amended to read as
48-26 follows:
49-1 Sec. 171.754. LENGTH OF CREDIT. The credit established
49-2 shall be established on [claimed in five equal installments of
49-3 one-fifth the credit amount over the] five consecutive reports
49-4 beginning with the report based upon the period during which the
49-5 qualifying jobs were created.
49-6 SECTION 68. Section 171.756, Tax Code, is amended to read as
49-7 follows:
49-8 Sec. 171.756. CARRYFORWARD. (a) If a corporation is
49-9 eligible for a credit [from an installment] that exceeds the
49-10 limitations under Section 171.755(a) or (b), the corporation may
49-11 carry the unused credit forward for not more than five consecutive
49-12 reports.
49-13 (b) A carryforward is considered the remaining portion of a
49-14 credit [an installment] that cannot be claimed in the current year
49-15 because of the tax limitation under Section 171.755. A
49-16 carryforward is added to the next year's [installment of the]
49-17 credit in determining the tax limitation for that year. A credit
49-18 carryforward from a previous report is considered to be utilized
49-19 before the current year credit [installment].
49-20 SECTION 69. Section 171.831, Tax Code, is amended to read as
49-21 follows:
49-22 Sec. 171.831. DEFINITION. In this subchapter, "school-age
49-23 child care" means care provided before or [and] after school and
49-24 during the summer and holidays for children who are at least five
49-25 years of age but younger than 14 years of age.
49-26 SECTION 70. Subsection (c), Section 171.834, Tax Code, is
50-1 amended to read as follows:
50-2 (c) A corporation may not claim a credit in an amount that
50-3 exceeds 50 percent of the amount of [net] franchise tax due, before
50-4 [after] applying any other credits, for the reporting period.
50-5 SECTION 71. Chapter 171, Tax Code, is amended by adding
50-6 Subchapter S to read as follows:
50-7 SUBCHAPTER S. CREDITS LIMITATION
50-8 Sec. 171.851. LIMITATION. The total credits claimed under
50-9 this chapter for a report, including the amount of any carryforward
50-10 credits, may not exceed the amount of franchise tax due for the
50-11 report.
50-12 SECTION 72. Section 211.055, Tax Code, is amended to read as
50-13 follows:
50-14 Sec. 211.055. MAXIMUM TAX. The amount of tax imposed by
50-15 this chapter may not exceed the amount of the tax imposed under
50-16 Section 2001, Internal Revenue Code, reduced by the unified credit
50-17 provided under Section 2010, Internal Revenue Code [taxes imposed
50-18 by this chapter, when added to the federal tax as finally assessed
50-19 and determined, may not exceed the amount of the federal tax which,
50-20 without application of this chapter and the federal credit and the
50-21 generation-skipping transfer tax credit to which it refers, would
50-22 otherwise be payable to the federal government under Subtitle B,
50-23 Chapters 11 and 13, Internal Revenue Code].
50-24 SECTION 73. Subchapter D, Chapter 321, Tax Code, is amended
50-25 by adding Section 321.312 to read as follows:
50-26 Sec. 321.312. RETENTION OF CERTAIN MUNICIPAL SALES TAXES. A
51-1 municipality that holds a sales and use tax permit issued by the
51-2 comptroller and that imposes a sales and use tax may retain the
51-3 portion of the tax that the municipality collects and that
51-4 constitutes the municipality's own tax. The municipality shall
51-5 remit to the comptroller all other applicable local sales and use
51-6 taxes and the state sales and use tax.
51-7 SECTION 74. Subchapter D, Chapter 322, Tax Code, is amended
51-8 by adding Section 322.306 to read as follows:
51-9 Sec. 322.306. RETENTION OF CERTAIN SPECIAL PURPOSE DISTRICT
51-10 SALES TAXES. A taxing entity that holds a sales and use tax permit
51-11 issued by the comptroller and that imposes a sales and use tax may
51-12 retain the portion of the tax that the taxing entity collects and
51-13 that constitutes the entity's own tax. The taxing entity shall
51-14 remit to the comptroller all other applicable local sales and use
51-15 taxes and the state sales and use tax.
51-16 SECTION 75. Subchapter D, Chapter 323, Tax Code, is amended
51-17 by adding Section 323.312 to read as follows:
51-18 Sec. 323.312. RETENTION OF CERTAIN COUNTY SALES TAXES. A
51-19 county that holds a sales and use tax permit issued by the
51-20 comptroller and that imposes a sales and use tax may retain the
51-21 portion of the tax that the county collects and that constitutes
51-22 the county's own tax. The county shall remit to the comptroller
51-23 all other applicable local sales and use taxes and the state sales
51-24 and use tax.
51-25 SECTION 76. Subsection (a), Section 311.045, Health and
51-26 Safety Code, is amended to read as follows:
52-1 (a) A nonprofit hospital or hospital system shall annually
52-2 satisfy the requirements of this subchapter and of Sections
52-3 11.18(d)(1), 151.310(a)(2) and (e), and 171.063(a)(1), Tax Code, to
52-4 provide community benefits which include charity care and
52-5 government-sponsored indigent health care by complying with one or
52-6 more of the standards set forth in Subsection (b). The hospital or
52-7 hospital system shall file a statement with the Bureau of State
52-8 Health Data and Policy Analysis at the department and[, with] the
52-9 chief appraiser of the local appraisal district[, and with the
52-10 comptroller's office] no later than the 120th day after the
52-11 hospital's or hospital system's fiscal year ends, stating which of
52-12 the standards in Subsection (b) have been satisfied, provided,
52-13 however, that the first report shall be filed no later than the
52-14 120th day after the end of the hospital's or hospital system's
52-15 fiscal year ending during 1994. For hospitals in a hospital
52-16 system, the corporate parent may elect to satisfy the charity care
52-17 requirements of this subchapter for each of the hospitals within
52-18 the system on a consolidated basis.
52-19 SECTION 77. Section 74.402, Property Code, is amended to
52-20 read as follows:
52-21 Sec. 74.402. NOTICE OF SALE. Before the 21st day preceding
52-22 the day on which a public sale is held under Section 74.401, the
52-23 comptroller shall publish notice of the sale in a newspaper of
52-24 general circulation in Travis County or in the county where the
52-25 sale is to be held. If the public sale is to be held on the
52-26 Internet or by an online auction, the comptroller may post the
53-1 notice on the comptroller's own website before the seventh day
53-2 preceding the date on which the sale or auction is held.
53-3 SECTION 78. Subsection (e), Section 11.011, Texas Racing Act
53-4 (Article 179e, Vernon's Texas Civil Statutes), is amended to read
53-5 as follows:
53-6 (e) The racetrack where the wager is made is responsible for
53-7 reporting and remitting the state's share of the pari-mutuel pool.
53-8 [If intrastate wagering pools are combined between tracks, the
53-9 track where the race originates is responsible for the state's
53-10 share of the pari-mutuel pool regardless of whether a shortage or
53-11 error occurred at the originating track or receiving track.]
53-12 SECTION 79. Section 1, Article 6550c-1, Revised Statutes, is
53-13 amended by amending Subdivision (6) and adding Subdivision (7) to
53-14 read as follows:
53-15 (6) "District property" means all property the
53-16 district owns or leases under a long-term lease.
53-17 (7) "System" means all of the commuter rail and
53-18 intermodal facilities leased or owned by or operated on behalf of a
53-19 district created under this article.
53-20 SECTION 80. Section 9, Article 6550c-1, Revised Statutes, is
53-21 amended to read as follows:
53-22 Sec. 9. SALES AND USE TAXES. (a) A [district shall collect
53-23 or cause to be collected] sales and use tax is imposed [taxes] on
53-24 items sold on district property. The sales and use tax shall be
53-25 imposed [collected] at the rate of the highest combination of
53-26 [state and] local sales and use taxes imposed at the time of the
54-1 district's creation in any local governmental jurisdiction which is
54-2 a member of a district. The [After deducting the state share of
54-3 sales and use taxes, the] comptroller shall remit to a district the
54-4 local sales and use tax collected on the district's property. All
54-5 other local sales and use taxes that would otherwise be imposed on
54-6 district property are preempted by the imposition of this tax.
54-7 (b) The comptroller shall administer, collect, and enforce a
54-8 tax imposed under this Act. Chapter 321, Tax Code, governs the
54-9 computation, administration, governance, and use of the tax except
54-10 as inconsistent with this Act.
54-11 (c) The district shall notify the comptroller in writing by
54-12 United States registered or certified mail of the district's
54-13 creation and of its intent to impose the sales and use tax under
54-14 this Act. The district shall provide to the comptroller all
54-15 information required to implement the tax, including:
54-16 (1) an adequate map showing the property boundaries of
54-17 the district;
54-18 (2) a certified copy of the resolution of the district
54-19 board adopting the tax; and
54-20 (3) certified copies of the resolutions of the
54-21 governing bodies of the municipalities creating the district and of
54-22 the commissioners courts in the counties in which the
54-23 municipalities are located.
54-24 (d) Not later than the 30th day after the date the
54-25 comptroller receives the notice, map, and other information, the
54-26 comptroller shall inform the district whether the comptroller is
55-1 prepared to administer the tax.
55-2 (e) At the same time the district notifies the comptroller
55-3 under Subsection (c) of this section, the district shall notify
55-4 each affected local governmental jurisdiction of the district's
55-5 creation and provide each jurisdiction with an adequate map showing
55-6 the property boundaries of the district.
55-7 (f) Not later than the 30th day after the date the district
55-8 acquires additional territory, the district shall notify the
55-9 comptroller and each affected local governmental jurisdiction of
55-10 the acquisition. The district must include with each notification
55-11 an adequate map showing the new property boundaries of the district
55-12 and the date the additional territory was acquired. Not later than
55-13 the 30th day after the date the comptroller receives the notice
55-14 under this subsection, the comptroller shall inform the district
55-15 whether the comptroller is prepared to administer the tax in the
55-16 additional territory.
55-17 (g) A tax imposed under this Act or the repeal of a tax
55-18 abolished under this Act takes effect on the first day of the first
55-19 complete calendar quarter that occurs after the expiration of the
55-20 first complete calendar quarter that occurs after the date the
55-21 comptroller receives a notice of the action as required by this
55-22 section.
55-23 SECTION 81. The following provisions of the Tax Code are
55-24 repealed:
55-25 (1) Subsections (d) and (e), Section 151.319;
55-26 (2) Subsections (c) and (d), Section 171.757; and
56-1 (3) Subsection (b), Section 201.052.
56-2 SECTION 82. Each change in law made by this Act to the
56-3 following provisions is a clarification of existing law and does
56-4 not imply that existing law may be construed as inconsistent with
56-5 the law as amended by this Act:
56-6 (1) Subsection (b), Section 111.0081, Tax Code;
56-7 (2) Subsection (a), Section 151.007, Tax Code;
56-8 (3) Section 151.010, Tax Code;
56-9 (4) Section 151.057, Tax Code;
56-10 (5) Subsection (b), Section 151.257, Tax Code;
56-11 (6) Subsection (a), Section 151.308, Tax Code;
56-12 (7) Section 151.310, Tax Code;
56-13 (8) Section 151.313, Tax Code;
56-14 (9) Subsection (a), Section 151.317, Tax Code;
56-15 (10) Subsections (a) and (t), Section 151.318, Tax
56-16 Code;
56-17 (11) Subsection (e), Section 151.3185, Tax Code;
56-18 (12) Subsection (b), Section 151.319, Tax Code;
56-19 (13) Subsection (a), Section 152.047, Tax Code;
56-20 (14) Subsection (d), Section 152.091, Tax Code;
56-21 (15) Subdivision (25), Section 153.001, Tax Code;
56-22 (16) Subsection (i), Section 153.018, Tax Code;
56-23 (17) Subsection (a), Section 153.117, Tax Code;
56-24 (18) Section 153.205, Tax Code;
56-25 (19) Subsection (c), Section 153.206, Tax Code;
56-26 (20) Subsection (j), Section 153.219, Tax Code;
57-1 (21) Subsections (a) and (c), Section 153.221, Tax
57-2 Code;
57-3 (22) Subdivision (13), Section 154.001, Tax Code;
57-4 (23) Subsections (a), (b), and (h), Section 154.101,
57-5 Tax Code;
57-6 (24) Subsection (a), Section 154.102, Tax Code;
57-7 (25) Subsection (a), Section 154.110, Tax Code;
57-8 (26) Subsection (a), Section 154.501, Tax Code;
57-9 (27) Subdivision (11), Section 155.001, Tax Code;
57-10 (28) Subsections (a), (b), and (h), Section 155.041,
57-11 Tax Code;
57-12 (29) Subsection (a), Section 155.048, Tax Code;
57-13 (30) Subsection (a), Section 155.201, Tax Code;
57-14 (31) Subsections (a) and (c), Section 171.1032, Tax
57-15 Code;
57-16 (32) Subsections (a) and (d), Section 171.1051, Tax
57-17 Code;
57-18 (33) Subsection (e), Section 171.1121, Tax Code;
57-19 (34) Subsection (b), Section 171.260, Tax Code;
57-20 (35) Section 171.831, Tax Code; and
57-21 (36) Subchapter S, Chapter 171, Tax Code.
57-22 SECTION 83. (a) The changes to Subsection (b), Section
57-23 326.023, Local Government Code, made by Section 2 of this Act apply
57-24 only to a petition filed with a commissioners court on or after the
57-25 effective date of that section. A petition filed before that date
57-26 is governed by the law in effect on the date the petition is filed,
58-1 and that law is continued in effect for that purpose.
58-2 (b) The changes to Section 326.029, Local Government Code,
58-3 made by Section 3 of this Act apply only to an order issued on or
58-4 after the effective date of that section. An order issued before
58-5 that date is governed by the law in effect on the date the order is
58-6 issued, and that law is continued in effect for that purpose.
58-7 SECTION 84. The comptroller of public accounts may adopt
58-8 rules and take other actions before October 1, 2001, as the
58-9 comptroller considers necessary or advisable to prepare for this
58-10 Act to take effect.
58-11 SECTION 85. (a) Except as otherwise provided by this
58-12 section, this Act takes effect September 1, 2001.
58-13 (b) Sections 12, 13, 14, 15, 17 through 26, 29 through 54,
58-14 73 through 75, and 78 of this Act, and Subdivisions (1) and (3),
58-15 Section 81 of this Act, take effect October 1, 2001.
58-16 (c) Sections 56 through 71 of this Act and Subdivision (2),
58-17 Section 81 of this Act, take effect January 1, 2002, and apply to a
58-18 report originally due on or after that date.