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.
2-7 SECTION 3. Section 326.029, Local Government Code, is
2-8 amended by amending Subsection (c) and adding Subsection (d) to
2-9 read as follows:
2-10 (c) The order canvassing the results of the election must:
2-11 (1) contain a description of the district's boundaries
2-12 and a map of the district; [and]
2-13 (2) state the date of the election; and
2-14 (3) state the total number of votes cast for and
2-15 against the ballot proposition [be filed in the deed records of the
2-16 county in which the district is located].
2-17 (d) The order issued by a commissioners court canvassing the
2-18 results of the election must be filed in the deed records of the
2-19 county in which the district is located.
2-20 SECTION 4. Subchapter F, Chapter 363, Local Government Code,
2-21 is amended by adding Section 363.262 to read as follows:
2-22 Sec. 363.262. EFFECTIVE DATE OF TAX CHANGE. (a) If less
2-23 than a majority of the votes cast in a continuation referendum are
2-24 for the continuation of the district or if a majority of the votes
2-25 cast in a dissolution referendum are for dissolution of the
2-26 district, the board shall notify the comptroller in writing of the
3-1 results of the referendum not later than the 10th day after the
3-2 date the referendum returns are canvassed.
3-3 (b) If the district is to be dissolved as a result of the
3-4 referendum, the abolition of the local crime control sales and use
3-5 tax takes effect on the first day of the first calendar quarter
3-6 that occurs after the expiration of the first complete calendar
3-7 quarter that occurs after the comptroller receives a notice of the
3-8 results of the continuation or dissolution referendum.
3-9 (c) If the comptroller determines that an effective date
3-10 provided by Subsection (b) will occur before the comptroller can
3-11 reasonably take the action required to implement abolition of the
3-12 tax, the comptroller may extend the effective date until the final
3-13 day of the succeeding calendar quarter.
3-14 SECTION 5. Section 378.004, Local Government Code, as added
3-15 by Chapter 305, Acts of the 76th Legislature, Regular Session,
3-16 1999, is amended to read as follows:
3-17 Sec. 378.004. MUNICIPAL POWERS. In addition to other powers
3-18 that a municipality may exercise, a municipality may:
3-19 (1) waive or adopt fees related to the construction of
3-20 buildings in the zone, including fees related to the inspection of
3-21 buildings and impact fees;
3-22 (2) enter into agreements, for a period of not more
3-23 than 10 years, for the purpose of benefiting the zone, for [sales
3-24 tax] refunds [or abatements] of municipal sales tax on sales made
3-25 in the zone;
3-26 (3) enter into agreements abating municipal property
4-1 taxes on property in the zone subject to the duration limits of
4-2 Section 312.204, Tax Code; and
4-3 (4) set baseline performance standards, such as the
4-4 Energy Star Program as developed by the Department of Energy, to
4-5 encourage the use of alternative building materials that address
4-6 concerns relating to the environment or to the building costs,
4-7 maintenance, or energy consumption.
4-8 SECTION 6. Section 383.104, Local Government Code, is
4-9 amended by adding Subsection (c) to read as follows:
4-10 (c) The district's sales and use tax is automatically
4-11 discontinued by operation of law if no tax revenue is collected
4-12 within the district before the first anniversary of the date the
4-13 tax took effect. The comptroller shall notify the board and the
4-14 commissioners court of the county in which the district is located
4-15 of the discontinuance of the tax. The district may authorize a new
4-16 sales and use tax by following the procedures provided by this
4-17 subchapter for imposition of the tax.
4-18 SECTION 7. Subsection (a), Section 25.00212, Government
4-19 Code, is amended to read as follows:
4-20 (a) At the end of each state fiscal year the comptroller
4-21 shall determine the amounts deposited in the judicial fund under
4-22 Section 51.704 [51.703] and the amounts paid to the counties under
4-23 Section 25.00211. If the total amount paid under Section 51.704 by
4-24 all counties exceeds the total amount paid to counties under
4-25 Section 25.00211, the state shall remit the excess to the counties
4-26 proportionately based on the percentage of the total paid by each
5-1 county.
5-2 SECTION 8. Subsection (b), Section 111.0081, Tax Code, is
5-3 amended to read as follows:
5-4 (b) This section does not apply to a determination under
5-5 Section 111.022 [151.506 of this code].
5-6 SECTION 9. Subsection (e), Section 111.301, Tax Code, is
5-7 amended to read as follows:
5-8 (e) Application for the refund is to the comptroller. The
5-9 application must:
5-10 (1) be made on the form prescribed by the comptroller;
5-11 (2) have attached a tax receipt from the assessor and
5-12 collector of taxes for the school district showing full payment of
5-13 school district ad valorem taxes on the property for the tax year
5-14 for which the refund is sought; and
5-15 (3) include sufficient information for the comptroller
5-16 to determine the portion of the ad valorem taxes paid to a school
5-17 district by the person for the applicable tax year on the property
5-18 that the person would not have been required to pay if the school
5-19 district had entered into a tax abatement agreement concerning the
5-20 property that included the same terms, including terms governing
5-21 the portion of the property that is to be exempt from taxation
5-22 under the agreement, as specified by the [applicable] municipal or
5-23 county tax abatement agreement on which the refund amount is to be
5-24 based.
5-25 SECTION 10. Section 111.302, Tax Code, is amended by
5-26 amending Subsections (b) and (c) and adding Subsection (d) to read
6-1 as follows:
6-2 (b) Applications for refund must be filed before August 1 of
6-3 the year following the tax year for which the person applying has
6-4 paid ad valorem taxes described by Section 111.301(a). Within 90
6-5 [60] days thereafter, the comptroller shall compute the total
6-6 amount eligible for refund.
6-7 (c) If the total amount of eligible refunds claimed by all
6-8 persons, as determined under Subsection (b), is less than $10
6-9 million, the amount of a tax refund is equal to the ad valorem
6-10 taxes paid to a school district by the person for the applicable
6-11 tax year on the property that the person would not have been
6-12 required to pay if the school district had entered into a tax
6-13 abatement agreement covering the property that included the same
6-14 terms, including terms governing the portion of the property that
6-15 is to be exempt from taxation under the agreement, as specified by
6-16 the [applicable] municipal or county tax abatement agreement on
6-17 which the refund amount is to be based. If the total amount of
6-18 eligible refunds claimed by all persons, as determined under
6-19 Subsection (b), is greater than $10 million, the comptroller shall
6-20 reduce the amount of each refund as necessary to allow all
6-21 claimants to share proportionally the $10 million available. The
6-22 amount by which a refund is reduced under this subsection may not
6-23 be included in a claim for a refund in a subsequent year.
6-24 (d) If an eligible person has entered into tax abatement
6-25 agreements with the municipality and the county, and the agreements
6-26 provided to the comptroller show that the agreements exempt
7-1 different portions of property value, the refund amount shall be
7-2 computed based on the greater of the portions exempted.
7-3 SECTION 11. Section 111.304, Tax Code, is amended to read as
7-4 follows:
7-5 Sec. 111.304. EVALUATION; ANNUAL REPORT. Not later than
7-6 [December 1, 1999, and] December 1 of each [subsequent] year, the
7-7 comptroller shall submit an annual report to the legislature. The
7-8 report:
7-9 (1) must document the applications for refunds filed
7-10 with the comptroller under this subchapter;
7-11 (2) must document the refunds paid by the comptroller
7-12 under this chapter; and
7-13 (3) [must contain relevant information obtained from
7-14 the Texas Department of Commerce, including information to
7-15 demonstrate the relationship between tax refunds under this
7-16 subchapter and the economy; and]
7-17 [(4)] may include any other relevant information that
7-18 the comptroller determines is applicable to this subchapter or to
7-19 Chapter 312.
7-20 SECTION 12. Subsection (a), Section 151.007, Tax Code, is
7-21 amended to read as follows:
7-22 (a) Except as provided by Subsections (c) and (d) [of this
7-23 section], "sales price" or "receipts" means the total amount for
7-24 which a taxable item is sold, leased, or rented, valued in money,
7-25 without a deduction for the cost of:
7-26 (1) the taxable item sold, leased, or rented;
8-1 (2) the materials used, labor or service employed,
8-2 interest, losses, or other expenses;
8-3 (3) the transportation or installation of tangible
8-4 personal property; or
8-5 (4) transportation incident to the performance of a
8-6 taxable service.
8-7 SECTION 13. Section 151.010, Tax Code, is amended to read as
8-8 follows:
8-9 Sec. 151.010. "TAXABLE ITEM." "Taxable item" means tangible
8-10 personal property and taxable services. Except as otherwise
8-11 provided by this chapter, the sale or use of a taxable item in
8-12 electronic form instead of on physical media does not alter the
8-13 item's tax status.
8-14 SECTION 14. Section 151.057, Tax Code, is amended to read as
8-15 follows:
8-16 Sec. 151.057. SERVICES BY EMPLOYEES. The following services
8-17 are not taxable under this chapter:
8-18 (1) a service performed by an employee for his
8-19 employer in the regular course of business, within the scope of the
8-20 employee's duties, and for which the employee is paid his regular
8-21 wages or salary;
8-22 (2) a service performed by an employee of a temporary
8-23 employment service as defined by Section 93.001, Labor Code, [a
8-24 temporary help service] for an employer to supplement the
8-25 employer's existing work force on a temporary basis, when the
8-26 service is normally performed by the employer's own employees, the
9-1 employer provides all supplies and equipment necessary, and the
9-2 help is under the direct or general supervision of the employer to
9-3 whom the help is furnished; or
9-4 (3) a service performed by assigned employees of a
9-5 staff leasing company, either licensed under Chapter 91, Labor
9-6 Code, or exempt from the licensing requirements of that chapter,
9-7 for a client company under a written contract that provides for
9-8 shared employment responsibilities between the staff leasing
9-9 company and the client company for the assigned employees, most of
9-10 whom must have been previously employed by the client company. The
9-11 comptroller shall prescribe by rule the minimum percentage of
9-12 assigned employees that must have been previously employed by the
9-13 client company, the minimum time period the assigned employees must
9-14 have been employed by the client company prior to the commencement
9-15 of its contract, and such other criteria as the comptroller may
9-16 deem necessary to properly implement this section.
9-17 SECTION 15. Subsection (a), Section 151.155, Tax Code, is
9-18 amended to read as follows:
9-19 (a) Except as provided by Section 151.3181 for property used
9-20 in manufacturing, if [If] a purchaser certifies in writing to a
9-21 seller that a taxable item sold, leased, or rented to the purchaser
9-22 will be used in a manner or for a purpose that qualifies the sale
9-23 of the item for an exemption from the taxes imposed by this
9-24 chapter, and if the purchaser then uses the item in some other
9-25 manner or for some other purpose, the purchaser is liable for the
9-26 payment of the sales tax on the value of the taxable item for any
10-1 period during which the item is used in the divergent manner or for
10-2 the divergent purpose.
10-3 SECTION 16. Subsection (b), Section 151.257, Tax Code, is
10-4 amended to read as follows:
10-5 (b) If the security filed by the person is a surety bond,
10-6 the comptroller shall send a copy of the determination to each
10-7 surety on the bond and shall demand payment from both the person
10-8 filing the bond and each surety. A surety's obligation under the
10-9 bond is not affected by whether the surety has a record of the
10-10 receipt of a copy of the comptroller's determination notice or
10-11 payment demand.
10-12 SECTION 17. Subchapter H, Chapter 151, Tax Code, is amended
10-13 by adding Section 151.3021 to read as follows:
10-14 Sec. 151.3021. PACKAGING SUPPLIES AND WRAPPING. (a) In
10-15 this section:
10-16 (1) "Laundry or dry cleaner" does not include
10-17 coin-operated or other self-service garment cleaning facilities.
10-18 (2) "Wrapping, packing, and packaging supplies" means
10-19 hangers, safety pins, pins, inventory tags, staples, boxes, paper
10-20 wrappers, and plastic bags.
10-21 (b) Internal and external wrapping, packing, and packaging
10-22 supplies are exempted from the taxes imposed by this chapter if
10-23 sold to a person who is a laundry or dry cleaner for use in
10-24 wrapping, packing, or packaging an item that has been pressed and
10-25 dry cleaned or laundered by the person operating as a laundry or
10-26 dry cleaner in the regular course of business.
11-1 SECTION 18. Subsection (a), Section 151.308, Tax Code, is
11-2 amended to read as follows:
11-3 (a) The following are exempted from the taxes imposed by
11-4 this chapter:
11-5 (1) oil as taxed by Chapter 202;
11-6 (2) sulphur as taxed by Chapter 203;
11-7 (3) motor fuels and special fuels as defined, taxed,
11-8 or exempted by Chapter 153;
11-9 (4) cement as taxed by Chapter 181;
11-10 (5) motor vehicles, trailers, and semitrailers as
11-11 defined, taxed, or exempted by Chapter 152 [or 157], other than a
11-12 mobile office as defined by Section 152.001(16);
11-13 (6) mixed beverages, ice, or nonalcoholic beverages
11-14 and the preparation or service of these items if the receipts are
11-15 taxable by Chapter 183 [202, Alcoholic Beverage Code];
11-16 (7) alcoholic beverages when sold to the holder of a
11-17 private club registration permit or to the agent or employee of the
11-18 holder of a private club registration permit if the holder or agent
11-19 or employee is acting as the agent of the members of the club and
11-20 if the beverages are to be served on the premises of the club;
11-21 (8) oil well service as taxed by Subchapter E, Chapter
11-22 191; and
11-23 (9) insurance premiums subject to gross premiums
11-24 taxes.
11-25 SECTION 19. Subsection (d), Section 151.310, Tax Code, is
11-26 amended to read as follows:
12-1 (d) If two or more organizations jointly hold a tax-free
12-2 sale or auction, each [neither] organization may hold one
12-3 additional [another] tax-free sale or auction during the calendar
12-4 year in which the joint sale or auction is held. The employment of
12-5 and payment of a reasonable fee to an auctioneer to conduct a
12-6 tax-free auction does not disqualify an otherwise qualified
12-7 organization from receiving the exemption provided by Subsection
12-8 (c) [of this section].
12-9 SECTION 20. Section 151.313, Tax Code, as amended by
12-10 Chapters 394 and 683, Acts of the 76th Legislature, Regular
12-11 Session, 1999, is reenacted and amended to read as follows:
12-12 Sec. 151.313. HEALTH CARE SUPPLIES. (a) The following
12-13 items are exempted from the taxes imposed by this chapter:
12-14 (1) a drug or medicine, other than insulin, if
12-15 prescribed or dispensed for a human or animal by a licensed
12-16 practitioner of the healing arts;
12-17 (2) insulin;
12-18 (3) subject to Subsection (c), a drug or medicine,
12-19 without regard to whether it is prescribed or dispensed by a
12-20 licensed practitioner of the healing arts[, that is labeled with a
12-21 national drug code issued by the federal Food and Drug
12-22 Administration];
12-23 (4) a hypodermic syringe or needle;
12-24 (5) a brace; hearing aid or audio loop; orthopedic,
12-25 dental, or prosthetic device; ileostomy, colostomy, or ileal
12-26 bladder appliance; or supplies or replacement parts for the listed
13-1 items;
13-2 (6) a therapeutic appliance, device, and any related
13-3 supplies specifically designed for those products, if dispensed or
13-4 prescribed by a licensed practitioner of the healing arts, when
13-5 those items are purchased and used by an individual for whom the
13-6 items listed in this subdivision were dispensed or prescribed;
13-7 (7) corrective lens and necessary and related
13-8 supplies, if dispensed or prescribed by an ophthalmologist or
13-9 optometrist;
13-10 (8) specialized printing or signalling equipment used
13-11 by the deaf for the purpose of enabling the deaf to communicate
13-12 through the use of an ordinary telephone and all materials, paper,
13-13 and printing ribbons used in that equipment;
13-14 (9) a braille wristwatch, braille writer, braille
13-15 paper and braille electronic equipment that connects to computer
13-16 equipment, and the necessary adaptive devices and adaptive computer
13-17 software;
13-18 (10) each of the following items if purchased for use
13-19 by the blind to enable them to function more independently: a
13-20 slate and stylus, print enlarger, light probe, magnifier, white
13-21 cane, talking clock, large print terminal, talking terminal, or
13-22 harness for guide dog;
13-23 (11) hospital beds;
13-24 (12) blood glucose monitoring test strips; [and]
13-25 (13) an adjustable eating utensil used to facilitate
13-26 independent eating if purchased for use by a person, including a
14-1 person who is elderly or physically disabled, has had a stroke, or
14-2 is a burn victim, who does not have full use or control of the
14-3 person's hands or arms; and
14-4 (14) subject to Subsection (d), a dietary supplement.
14-5 (b) Each of the following items is exempted from the tax
14-6 imposed by this chapter if the item is used by a person who is deaf
14-7 to enable the person to function more independently:
14-8 (1) a light signal and device to adapt items such as
14-9 telecommunication devices for the deaf (TDDs), telephones,
14-10 doorbells, and smoke alarms; and
14-11 (2) adaptive devices or adaptive software for
14-12 computers used by persons who are deaf.
14-13 (c) A product is a drug or medicine for purposes of this
14-14 section if:
14-15 (1) the product:
14-16 (A) is intended for use in the diagnosis, cure,
14-17 mitigation, treatment, or prevention of disease, illness, injury,
14-18 or pain;
14-19 (B) is applied to the human body or is a product
14-20 that a human ingests or inhales;
14-21 (C) is not an appliance or device; and
14-22 (D) is not food; or
14-23 (2) the product is labeled or required to be labeled
14-24 with a "Drug Facts" panel in accordance with regulations of the
14-25 federal Food and Drug Administration.
14-26 (d) A product is a dietary supplement for purposes of this
15-1 section if:
15-2 (1) the product:
15-3 (A) contains one or more vitamins, minerals,
15-4 herbs or botanicals, amino acids, or substances that supplement the
15-5 daily dietary intake;
15-6 (B) is not represented as food or the sole item
15-7 of a meal or the diet; and
15-8 (C) is labeled "dietary supplement" or
15-9 "supplement"; or
15-10 (2) the product is labeled or required to be labeled
15-11 with a "Supplement Facts" panel in accordance with regulations of
15-12 the federal Food and Drug Administration.
15-13 SECTION 21. Subsection (a), Section 151.317, Tax Code, is
15-14 amended to read as follows:
15-15 (a) Subject to Subsection (d), gas and electricity are
15-16 exempted from the taxes imposed by this chapter when sold for:
15-17 (1) residential use;
15-18 (2) use in powering equipment exempt under Section
15-19 151.318 or 151.3185 by a person processing tangible personal
15-20 property for sale as tangible personal property, other than
15-21 preparation or storage of food for immediate consumption;
15-22 (3) use in lighting, cooling, and heating in the
15-23 manufacturing area during the actual manufacturing or processing of
15-24 tangible personal property for sale as tangible personal property,
15-25 other than preparation or storage of food for immediate
15-26 consumption;
16-1 (4) use directly in exploring for, producing, or
16-2 transporting, a material extracted from the earth;
16-3 (5) use in agriculture, including dairy or poultry
16-4 operations and pumping for farm or ranch irrigation;
16-5 (6) use directly in electrical processes, such as
16-6 electroplating, electrolysis, and cathodic protection;
16-7 (7) use directly in the off-wing processing, overhaul,
16-8 or repair of a jet turbine engine or its parts for a certificated
16-9 or licensed carrier of persons or property;
16-10 (8) use directly in providing, under contracts with or
16-11 on behalf of the United States government or foreign governments,
16-12 defense or national security-related electronics, classified
16-13 intelligence data processing and handling systems, or
16-14 defense-related platform modifications or upgrades; [or]
16-15 (9) a direct or indirect use, consumption, or loss of
16-16 electricity by an electric utility engaged in the purchase of
16-17 electricity for resale; or
16-18 (10) use in timber operations, including pumping for
16-19 irrigation of timberland.
16-20 SECTION 22. Subsections (a) and (t), Section 151.318, Tax
16-21 Code, are amended to read as follows:
16-22 (a) The following items are exempted from the taxes imposed
16-23 by this chapter if sold, leased, or rented to, or stored, used, or
16-24 consumed by a manufacturer:
16-25 (1) tangible personal property that will become an
16-26 ingredient or component part of tangible personal property
17-1 manufactured, processed, or fabricated for ultimate sale;
17-2 (2) tangible personal property directly used or
17-3 consumed in or during the actual manufacturing, processing, or
17-4 fabrication of tangible personal property for ultimate sale if the
17-5 use or consumption of the property is necessary or essential to the
17-6 manufacturing, processing, or fabrication operation and directly
17-7 makes or causes a chemical or physical change to:
17-8 (A) the product being manufactured, processed,
17-9 or fabricated for ultimate sale; or
17-10 (B) any intermediate or preliminary product that
17-11 will become an ingredient or component part of the product being
17-12 manufactured, processed, or fabricated for ultimate sale;
17-13 (3) services performed directly on the product being
17-14 manufactured prior to its distribution for sale and for the purpose
17-15 of making the product more marketable;
17-16 (4) actuators, steam production equipment and its
17-17 fuel, in-process flow through tanks, cooling towers, generators,
17-18 heat exchangers, transformers and the switches, breakers, capacitor
17-19 banks, regulators, relays, reclosers, fuses, interruptors,
17-20 reactors, arrestors, resistors, insulators, instrument
17-21 transformers, and telemetry units that are related to the
17-22 transformers, electronic control room equipment, computerized
17-23 control units, pumps, compressors, and hydraulic units, that are
17-24 used to power, supply, support, or control equipment that qualifies
17-25 for exemption under Subdivision (2) or (5) or to generate
17-26 electricity, chilled water, or steam for ultimate sale;
18-1 transformers located at an electric generating facility that
18-2 increase the voltage of electricity generated for ultimate sale,
18-3 the electrical cable that carries the electricity from the electric
18-4 generating equipment to the step-up transformers, and the switches,
18-5 breakers, capacitor banks, regulators, relays, reclosers, fuses,
18-6 interruptors, reactors, arrestors, resistors, insulators,
18-7 instrument transformers, and telemetry units that are related to
18-8 the step-up transformers; and transformers that decrease the
18-9 voltage of electricity generated for ultimate sale and the
18-10 switches, breakers, capacitor banks, regulators, relays, reclosers,
18-11 fuses, interruptors, reactors, arrestors, resistors, insulators,
18-12 instrument transformers, and telemetry units that are related to
18-13 the step-down transformers;
18-14 (5) tangible personal property used or consumed in the
18-15 actual manufacturing, processing, or fabrication of tangible
18-16 personal property for ultimate sale if the use or consumption of
18-17 the property is necessary and essential to a pollution control
18-18 process;
18-19 (6) lubricants, chemicals, chemical compounds, gases,
18-20 or liquids that are used or consumed during the actual
18-21 manufacturing, processing, or fabrication of tangible personal
18-22 property for ultimate sale if their use or consumption is necessary
18-23 and essential to prevent the decline, failure, lapse, or
18-24 deterioration of equipment exempted by this section;
18-25 (7) gases used on the premises of a manufacturing
18-26 plant to prevent contamination of raw material or product, or to
19-1 prevent a fire, explosion, or other hazardous or environmentally
19-2 damaging situation at any stage in the manufacturing process or in
19-3 loading or storage of the product or raw material on premises;
19-4 (8) tangible personal property used or consumed during
19-5 the 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 quality control
19-8 process that tests tangible personal property that is being
19-9 manufactured, processed, or fabricated for ultimate sale;
19-10 (9) safety apparel or work clothing that is used
19-11 during the actual manufacturing, processing, or fabrication of
19-12 tangible personal property for ultimate sale if:
19-13 (A) the manufacturing process would not be
19-14 possible without the use of the apparel or clothing; and
19-15 (B) the apparel or clothing is not resold to the
19-16 employee;
19-17 (10) tangible personal property used or consumed in
19-18 the actual manufacturing, processing, or fabrication of tangible
19-19 personal property for ultimate sale if the use or consumption of
19-20 the property is necessary and essential to comply with federal,
19-21 state, or local laws or rules that establish requirements related
19-22 to public health; and
19-23 (11) tangible personal property specifically installed
19-24 to:
19-25 (A) reduce water use and wastewater flow volumes
19-26 from the manufacturing, processing, fabrication, or repair
20-1 operation;
20-2 (B) reuse and recycle wastewater streams
20-3 generated within the manufacturing, processing, fabrication, or
20-4 repair operation; or
20-5 (C) treat wastewater from another industrial or
20-6 municipal source for the purpose of replacing existing freshwater
20-7 sources in the manufacturing, processing, fabrication, or repair
20-8 operation.
20-9 (t) In addition to the other items exempted under this
20-10 section, pre-press machinery, equipment, and supplies, including
20-11 computers, cameras, photographic props, film, film developing
20-12 chemicals, veloxes, plate-making machinery, plate metal, litho
20-13 negatives, color separation negatives, proofs of color negatives,
20-14 production art work, and typesetting or composition proofs, that
20-15 are necessary and essential to and used in connection with the
20-16 printing process are exempted from the tax imposed by this chapter
20-17 if they are purchased by a person engaged in:
20-18 (1) printing or imprinting tangible personal property
20-19 for sale; or
20-20 (2) producing a publication for the dissemination of
20-21 news of a general character and of a general interest that is
20-22 printed on newsprint and distributed to the general public free of
20-23 charge at a daily, weekly, or other short interval.
20-24 SECTION 23. Subchapter H, Chapter 151, Tax Code, is amended
20-25 by adding Section 151.3181 to read as follows:
20-26 Sec. 151.3181. DIVERGENT USE OF PROPERTY USED IN
21-1 MANUFACTURING. (a) In this section:
21-2 (1) "Divergent use" means the use of property in a
21-3 manner or for a purpose other than the manner or purpose that
21-4 qualified the sale, lease, rental, use, or other consumption of the
21-5 property for exemption under Section 151.318.
21-6 (2) "Property" means tangible personal property
21-7 regardless of whether the tangible personal property is permanently
21-8 affixed to or incorporated into realty after its purchase.
21-9 (b) Divergent use of property exempted under Section 151.318
21-10 will not result in sales and use tax being due on the property if
21-11 the divergent use occurs after the fourth anniversary of the date
21-12 the property is purchased.
21-13 (c) Except as provided by Subsection (d), divergent use of
21-14 property exempted under Section 151.318 that occurs during any
21-15 month before the fourth anniversary of the date the property is
21-16 purchased results in sales and use tax being due for that month.
21-17 The amount of the sales and use tax due for a month is equal to
21-18 1/48 of the purchase price of the property multiplied by the
21-19 percentage of divergent use during that month multiplied by the
21-20 sales and use tax rate applicable at the time of purchase.
21-21 (d) Divergent use of property exempted under Section 151.318
21-22 that occurs during a month before the fourth anniversary of the
21-23 date the property is purchased does not result in sales and use tax
21-24 being due for that month if the percentage of divergent use during
21-25 that month does not exceed five percent of the total use of the
21-26 property that month.
22-1 (e) The amount of divergent use during a month is:
22-2 (1) the total time the property operates for a
22-3 divergent use during a month, measured in hours; or
22-4 (2) the total output of the property during divergent
22-5 use during a month, measured in a manner applicable to that
22-6 property.
22-7 (f) The total use of property is:
22-8 (1) the total time the property operates during a
22-9 month, measured in hours; or
22-10 (2) the total output of the property during a month,
22-11 measured in a manner applicable to that property.
22-12 (g) The percentage of divergent use for a month is
22-13 determined by:
22-14 (1) dividing the amount of divergent use determined
22-15 under Subsection (e)(1) by the amount of total use of the property
22-16 determined under Subsection (f)(1); or
22-17 (2) dividing the amount of divergent use determined
22-18 under Subsection (e)(2) by the amount of total use of the property
22-19 determined under Subsection (f)(2).
22-20 SECTION 24. Section 151.3185, Tax Code, is amended by adding
22-21 Subsections (e) and (f) to read as follows:
22-22 (e) The sale of a motion picture, video, or audio master by
22-23 the producer of the master is exempt from the taxes imposed by this
22-24 chapter.
22-25 (f) Tangible personal property that is sold to an entity to
22-26 which 47 C.F.R. Section 73.624(b) applies is exempt from the taxes
23-1 imposed by this chapter if the property is necessary for the entity
23-2 to comply with 47 C.F.R. Section 73.682(d).
23-3 SECTION 25. Subsection (b), Section 151.319, Tax Code, is
23-4 amended to read as follows:
23-5 (b) A transaction involving a sale of a newspaper that has
23-6 been produced, fabricated, or printed to the special order of a
23-7 customer is exempted from the taxes imposed by this chapter if:
23-8 (1) the customer is responsible for gathering
23-9 substantially all of the information contained in the newspaper and
23-10 for formulating the design, layout, and format of the newspaper;
23-11 and
23-12 (2) the customer would be entitled to the exemption
23-13 provided by Section 151.318(t) [Subsection (d) of this section] if
23-14 the customer had a printing facility capable of processing and
23-15 printing the newspaper and printed and processed the newspaper.
23-16 SECTION 26. Section 152.002, Tax Code, is amended by adding
23-17 Subsection (e) to read as follows:
23-18 (e) A person who is a motor vehicle owner, is in the
23-19 business of renting motor vehicles, and holds a permit may deduct
23-20 the fair market value of a replaced motor vehicle that is titled to
23-21 another person if:
23-22 (1) either person:
23-23 (A) holds a beneficial ownership interest in the
23-24 other person of at least 80 percent; or
23-25 (B) acquires all of its vehicles exclusively
23-26 from franchised dealers whose franchisor shares common ownership
24-1 with the other person; and
24-2 (2) the replaced motor vehicle is offered for sale.
24-3 SECTION 27. Section 152.041, Tax Code, is amended by
24-4 amending Subsections (c) and (d) and adding Subsection (f) to read
24-5 as follows:
24-6 (c) Except as provided by Subsection (f) and Section
24-7 152.047, the tax imposed by Section 152.021 [of this code] is due
24-8 on the 20th working day after the date [day that] the motor vehicle
24-9 is delivered to the purchaser.
24-10 (d) Except as provided by Subsection (f), the [The] tax
24-11 imposed by Section 152.022 [of this code] is due on the 20th
24-12 working day after the date [day that] the motor vehicle is brought
24-13 into this state.
24-14 (f) The tax imposed by Section 152.021 or 152.022 on a motor
24-15 vehicle designed for commercial use is due on the 20th working day
24-16 after the date the motor vehicle is equipped with a body or other
24-17 equipment that enables the motor vehicle to be eligible to be
24-18 registered under the Transportation Code.
24-19 SECTION 28. Subsection (a), Section 152.047, Tax Code, is
24-20 amended to read as follows:
24-21 (a) Except as inconsistent with this chapter and rules
24-22 adopted under this chapter, the seller of a motor vehicle shall
24-23 report and pay the tax imposed on a seller-financed sale to the
24-24 comptroller on the seller's receipts from seller-financed sales in
24-25 the same manner as the sales tax is reported and paid by a retailer
24-26 under Sections 151.401, 151.402, 151.405, 151.406, 151.409,
25-1 151.423, 151.424, and 151.425 [Chapter 151].
25-2 SECTION 29. Section 152.091, Tax Code, is amended by adding
25-3 Subsection (d) to read as follows:
25-4 (d) For purposes of this section, a machine is used
25-5 "primarily for timber operations" if the machine is a
25-6 self-propelled motor vehicle that is specially adapted to perform a
25-7 specialized function in the production of timber, including land
25-8 preparation, planting, maintenance, and gathering of trees commonly
25-9 grown for commercial timber. The term does not include a
25-10 self-propelled motor vehicle used to transport timber or timber
25-11 products.
25-12 SECTION 30. Subdivision (25), Section 153.001, Tax Code, is
25-13 amended to read as follows:
25-14 (25) "Supplier" means a person who:
25-15 (A) refines, distills, manufactures, produces,
25-16 or blends for sale or distribution diesel fuel in this state;
25-17 (B) imports or exports diesel fuel other than in
25-18 the fuel supply tanks of motor vehicles;
25-19 (C) sells or delivers diesel fuel in bulk
25-20 quantities to dealers, dyed diesel fuel bonded users, agricultural
25-21 bonded users, bulk users, aviation fuel dealers, or other
25-22 suppliers; or
25-23 (D) is engaged in the business of selling or
25-24 delivering diesel fuel in bulk quantities to consumers for
25-25 nonhighway uses.
25-26 SECTION 31. Subsection (i), Section 153.018, Tax Code, is
26-1 amended to read as follows:
26-2 (i) Each terminal or bulk plant shall post a notice in a
26-3 conspicuous location proximate to the point of receipt of shipping
26-4 papers that describes the duties of importers and exporters under
26-5 this section. The comptroller may prescribe the language, type,
26-6 style, and format of the notice.
26-7 SECTION 32. Subsection (c), Section 153.115, Tax Code, is
26-8 amended to read as follows:
26-9 (c) A permitted interstate trucker is entitled to deduct
26-10 one-half of one percent of the taxable gallons of gasoline on
26-11 timely payment of the taxes to the state for the expense of
26-12 recordkeeping, reporting, and remitting the tax.
26-13 SECTION 33. Subsection (a), Section 153.117, Tax Code, is
26-14 amended to read as follows:
26-15 (a) A distributor shall keep:
26-16 (1) a record showing the number of gallons of:
26-17 (A) all gasoline inventories on hand at the
26-18 first of each month;
26-19 (B) all gasoline refined, compounded, or
26-20 blended;
26-21 (C) all gasoline purchased or received, showing
26-22 the name of the seller and date of each purchase or receipt;
26-23 (D) all gasoline sold, distributed, or used,
26-24 showing the name of the purchaser and the date of the sale or use;
26-25 and
26-26 (E) all gasoline lost by fire, theft, or
27-1 accident; and
27-2 (2) an itemized statement showing by load the number
27-3 of gallons of all gasoline:
27-4 (A) received during the preceding calendar month
27-5 for export and the location of the loading;
27-6 (B) exported from this state by destination
27-7 state or country; and
27-8 (C) imported during the preceding calendar month
27-9 by [destination] state or country of origin.
27-10 SECTION 34. Subsection (a), Section 153.119, Tax Code, is
27-11 amended to read as follows:
27-12 (a) A person who exports, sells to the federal government,
27-13 to a public school district in this state, or to a commercial
27-14 transportation company for exclusive use in providing public school
27-15 transportation services to a school district under Section 34.008,
27-16 Education Code, without having added the amount of the tax imposed
27-17 by this chapter to his selling price, loses by fire, theft, or
27-18 accident, or uses gasoline for the purpose of operating or
27-19 propelling a motorboat, tractor used for agricultural purposes, or
27-20 stationary engine, or for another purpose except in a vehicle
27-21 operated or intended to be operated on the public highways of this
27-22 state, and who has paid the tax imposed on gasoline by this chapter
27-23 either directly or indirectly is, when the person has complied with
27-24 the invoice and filing provisions of this section and the rules of
27-25 the comptroller, entitled to reimbursement of the tax paid by him,
27-26 less [a filing fee and] any amount allowed distributors under
28-1 Section 153.105(e) [of this code]. A public school district that
28-2 has paid the tax imposed under this chapter on gasoline used by the
28-3 district or a commercial transportation company that has paid the
28-4 tax imposed under this chapter on gasoline used by the company
28-5 exclusively to provide public school transportation services to a
28-6 school district under Section 34.008, Education Code, is entitled
28-7 to reimbursement of the amount of the tax paid in the same manner
28-8 and subject to the same procedures as other exempted users.
28-9 SECTION 35. Section 153.122, Tax Code, is amended to read as
28-10 follows:
28-11 Sec. 153.122. GASOLINE TAX REFUND PAYMENT [AND FILING FEE].
28-12 [(a)] After examination of the refund claim, the comptroller
28-13 before issuing a refund warrant shall deduct from the amount of the
28-14 refund[:]
28-15 [(1)] the two percent deducted originally by the
28-16 distributor on the first sale or distribution of the gasoline[; and]
28-17 [(2) $1.50 as a filing fee.]
28-18 [(b) The filing fees shall be set aside for the use and
28-19 benefit of the comptroller in the administration and enforcement of
28-20 this section. All filing fees shall be paid into the state
28-21 treasury and shall be paid out on vouchers and warrants in the
28-22 manner prescribed by law].
28-23 SECTION 36. (a) Section 153.203, Tax Code, is amended to
28-24 read as follows:
28-25 Sec. 153.203. EXCEPTIONS. The tax imposed by this
28-26 subchapter does not apply to:
29-1 (1) diesel fuel delivered by a permitted supplier to a
29-2 common or contract carrier, oceangoing vessel (including ship,
29-3 tanker, or boat), or barge for export from this state, if the
29-4 diesel fuel is moved forthwith outside this state;
29-5 (2) diesel fuel sold by a permitted supplier to the
29-6 federal government for its exclusive use;
29-7 (3) diesel fuel sold or delivered by a permitted
29-8 supplier to another permitted supplier or to the bulk storage
29-9 facility of an agricultural bonded user, or dyed diesel fuel sold
29-10 or delivered by a permitted supplier to the bulk storage facility
29-11 of a dyed diesel fuel bonded user, to the bulk storage facility of
29-12 a diesel tax prepaid user, or to a purchaser who provides a signed
29-13 statement as provided by Section 153.205 of this code, but not
29-14 including a delivery of tax-free diesel fuel into the fuel supply
29-15 tanks of a motor vehicle, except for a motor vehicle owned by the
29-16 federal government;
29-17 (4) diesel fuel sold or delivered by a permitted
29-18 supplier into the storage facility of a permitted aviation fuel
29-19 dealer, from which diesel fuel will be sold or delivered solely
29-20 into the fuel supply tanks of aircraft or aircraft servicing
29-21 equipment;
29-22 (5) diesel fuel sold or delivered by a permitted
29-23 supplier into fuel supply tanks of railway engines, motorboats, or
29-24 refrigeration units or other stationary equipment powered by a
29-25 separate motor from a separate fuel supply tank;
29-26 (6) kerosene when delivered by a permitted supplier
30-1 into a storage facility at a retail business from which all
30-2 deliveries are exclusively for heating, cooking, lighting, or
30-3 similar nonhighway use;
30-4 (7) diesel fuel sold or delivered by one aviation fuel
30-5 dealer to another aviation fuel dealer who will deliver the diesel
30-6 fuel exclusively into the supply tanks of aircraft or aircraft
30-7 servicing equipment;
30-8 (8) diesel fuel sold by a permitted supplier to a
30-9 public school district in this state for its exclusive use;
30-10 (9) diesel fuel sold by a permitted supplier to a
30-11 commercial transportation company that provides public school
30-12 transportation services to a school district under Section 34.008,
30-13 Education Code, and used by the company exclusively to provide
30-14 those services; [or]
30-15 (10) diesel fuel sold by a permitted supplier to a
30-16 person, other than a political subdivision, who owns, controls,
30-17 operates, or manages a commercial motor vehicle as defined by
30-18 Section 548.001, Transportation Code, if the fuel:
30-19 (A) is delivered exclusively into the fuel
30-20 supply tank of the commercial motor vehicle; and
30-21 (B) is used exclusively to transport passengers
30-22 for compensation or hire between points in this state on a fixed
30-23 route or schedule; or
30-24 (11) the volume of water that is blended together with
30-25 taxable diesel fuel when the finished product sold or used is
30-26 clearly identified on the retail pump, storage tank, and sales
31-1 invoice as a combination of diesel fuel and water.
31-2 (b) The change in law made by this section of this Act does
31-3 not affect taxes imposed before the effective date of this section,
31-4 and the law in effect before the effective date of this section is
31-5 continued in effect for purposes of the liability for and
31-6 collection of those taxes.
31-7 SECTION 37. Section 153.205, Tax Code, is amended to read as
31-8 follows:
31-9 Sec. 153.205. STATEMENT FOR PURCHASE OF DIESEL FUEL TAX
31-10 FREE. (a) The first sale or use of diesel fuel in this state is
31-11 taxable, except that sales of dyed diesel fuel, or of undyed diesel
31-12 fuel if the fuel will be used for an agricultural nonhighway
31-13 purpose, may be made without collecting the tax if the purchaser
31-14 furnishes to a permitted supplier a signed statement, including an
31-15 end user number or agricultural [user] exemption number issued by
31-16 the comptroller. A person who wants to use a signed statement to
31-17 purchase dyed diesel fuel must apply to the comptroller for an end
31-18 user number to be used in conjunction with a signed statement. A
31-19 person who wants to use a signed statement to purchase dyed or
31-20 undyed diesel fuel for an agricultural nonhighway purpose must
31-21 apply to the comptroller for an agricultural exemption number to be
31-22 used in conjunction with a signed statement. A supplier may not
31-23 make a tax-free sale of any diesel fuel to a purchaser using a
31-24 signed statement unless the purchaser has an end user number or
31-25 agricultural exemption number issued by the comptroller under this
31-26 section [that stipulates that:]
32-1 [(1) the purchaser does not operate any diesel-powered
32-2 motor vehicles on the public highway;]
32-3 [(2) all of the diesel fuel will be consumed by the
32-4 purchaser and no diesel fuel purchased on a signed statement will
32-5 be resold; and]
32-6 [(3) none of the diesel fuel purchased in this state
32-7 will be delivered or permitted by the purchaser to be delivered
32-8 into fuel supply tanks of motor vehicles].
32-9 (b) A sale of dyed diesel fuel may be made without
32-10 collecting the tax if the purchaser furnishes to a permitted
32-11 supplier a signed statement, including an end user number issued by
32-12 the comptroller, that stipulates that:
32-13 (1) none of the diesel fuel purchased on the signed
32-14 statement is of a type that may legally be used on the public
32-15 highway;
32-16 (2) all of the dyed diesel fuel purchased on the
32-17 signed statement will be consumed by the purchaser and will not be
32-18 resold; and
32-19 (3) none of the dyed diesel fuel purchased on the
32-20 signed statement will be delivered or permitted to be delivered
32-21 into the fuel supply tank of a motor vehicle operated on the public
32-22 highways of this state.
32-23 (c) A sale of dyed or undyed diesel fuel for an agricultural
32-24 nonhighway use may be made without collecting the tax if the
32-25 purchaser furnishes to a permitted supplier a signed statement,
32-26 including an agricultural exemption number issued by the
33-1 comptroller, that stipulates that:
33-2 (1) all of the dyed and undyed diesel fuel purchased
33-3 on the signed statement will be used exclusively in agricultural
33-4 nonhighway equipment;
33-5 (2) all of the dyed and undyed diesel fuel purchased
33-6 on the signed statement will be consumed by the purchaser and will
33-7 not be resold; and
33-8 (3) none of the dyed or undyed diesel fuel purchased
33-9 on the signed statement will be delivered or permitted to be
33-10 delivered into the fuel supply tank of a motor vehicle operated on
33-11 the public highways of this state.
33-12 (d) A person may not make a tax-free purchase of any diesel
33-13 fuel under this section using a signed statement:
33-14 (1) for the purchase of more than 3,000 gallons of
33-15 dyed or undyed diesel fuel in a single transaction or delivery; or
33-16 (2) in a calendar month in which the person has
33-17 previously purchased more than 10,000 gallons of dyed or undyed
33-18 diesel fuel from all sources.
33-19 (e) Any gallons purchased in excess of the limitations
33-20 prescribed by Subsection (d) constitute a taxable purchase. The
33-21 purchaser paying the tax on dyed or undyed diesel fuel in excess of
33-22 the limitations prescribed by Subsection (d) may claim a refund of
33-23 the tax paid on any dyed or undyed diesel fuel used for nonhighway
33-24 purposes under Section 153.222.
33-25 (f) A supplier may not make a tax-free sale of any diesel
33-26 fuel under this section to a purchaser using a signed statement:
34-1 (1) for the sale of more than 3,000 gallons of dyed or
34-2 undyed diesel fuel in a single transaction or delivery; or
34-3 (2) in a calendar month in which the supplier has
34-4 previously sold more than 10,000 gallons of dyed or undyed diesel
34-5 fuel to the purchaser.
34-6 (g) Any gallons sold in excess of the limitations prescribed
34-7 by Subsection (f) constitute a taxable sale. The purchaser paying
34-8 the tax on dyed or undyed diesel fuel in excess of the limitations
34-9 prescribed by Subsection (f) may claim a refund of the tax paid on
34-10 any dyed or undyed diesel fuel used for nonhighway purposes under
34-11 Section 153.222.
34-12 (h) [(c)] The signed statement and end user number or
34-13 agricultural [user] exemption number from the purchaser as provided
34-14 by this section relieves the permitted supplier from the burden of
34-15 proof that the sale of dyed diesel fuel or of undyed diesel fuel
34-16 for an agricultural nonhighway purpose was not taxable to the
34-17 purchaser and remains in effect unless:
34-18 (1) the statement is revoked in writing by the
34-19 purchaser or supplier; or
34-20 (2) the comptroller notifies the supplier in writing
34-21 that the purchaser may no longer make tax-free purchases[; or]
34-22 [(3) the supplier is put on notice by making taxable
34-23 sales of diesel fuel to a purchaser who has previously submitted a
34-24 signed statement to this supplier].
34-25 (i) [(d) A taxable sale to a person who has previously
34-26 submitted a signed statement creates a rebuttable presumption that
35-1 the supplier had reasonable notice that all subsequent sales should
35-2 have been taxable.]
35-3 [(e)] A taxable use of any part of the dyed or undyed diesel
35-4 fuel purchased under a signed statement shall, in addition to any
35-5 criminal penalty, forfeit the right of the person to purchase dyed
35-6 or undyed diesel fuel tax free for a period of one year from the
35-7 date of the offense, and any tax, interest, and penalty found to be
35-8 due through false or erroneous execution or continuance of a
35-9 promissory statement by the purchaser, if assessed to the supplier,
35-10 is a debt of the purchaser to the supplier until paid, and is
35-11 recoverable at law in the same manner as the purchase price of the
35-12 fuel. The person may, however, claim a refund of the tax paid on
35-13 any dyed or undyed diesel fuel used for nonhighway purposes under
35-14 Section 153.222.
35-15 [(f) The statement must be signed by the purchaser or his
35-16 representative.]
35-17 [(g) The comptroller's regulations may allow separate
35-18 operating divisions of corporations to give separate signed
35-19 statements as if they were different legal entities.]
35-20 [(h) The comptroller may promulgate necessary forms and
35-21 rules to administer and enforce this section.]
35-22 [(i) A permitted supplier may not make a tax-free sale of
35-23 dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
35-24 to a purchaser using a signed statement:]
35-25 [(1) for the sale of more than 3,000 gallons of dyed
35-26 or undyed diesel fuel in a single transaction; or]
36-1 [(2) in a calendar month in which the supplier has
36-2 previously sold more than 10,000 gallons of dyed or undyed diesel
36-3 fuel to the purchaser.]
36-4 [(j)(1) A sale of dyed diesel fuel, or undyed diesel fuel
36-5 for agricultural purposes, may be made without collecting tax from
36-6 a purchaser who operates one or more motor vehicles on the public
36-7 highway and who furnishes to a permitted supplier a signed
36-8 statement and end user number or agricultural user exemption number
36-9 only as provided in this subsection.]
36-10 [(2) The statement must stipulate that all the dyed or
36-11 undyed diesel fuel will be consumed by the purchaser for purposes
36-12 other than operating a motor vehicle on the public highway and that
36-13 no dyed or undyed diesel fuel purchased on a signed statement will
36-14 be resold or delivered into the fuel supply tanks of a motor
36-15 vehicle.]
36-16 [(3) Diesel fuel which may be sold without collection
36-17 of tax under this subsection must be of a type that may not be
36-18 legally used by the purchaser for the operation of a motor vehicle
36-19 on the public highway under state or federal law.]
36-20 [(4) Subsections (a), (c)(3), and (d) of this section
36-21 do not apply to sales of fuel under this subsection.]
36-22 [(k) A person who wants to use a signed statement to
36-23 purchase dyed diesel fuel must apply to the comptroller for an end
36-24 user number to be used in conjunction with a signed statement. A
36-25 person who wants to use a signed statement to purchase dyed or
36-26 undyed diesel fuel for agricultural purposes must apply to the
37-1 comptroller for an agricultural user exemption number to be used in
37-2 conjunction with a signed statement. A person may not make a
37-3 tax-free sale of any diesel fuel to a purchaser using a signed
37-4 statement unless the purchaser has an end user number or
37-5 agricultural user exemption number issued by the comptroller under
37-6 this subsection.]
37-7 SECTION 38. Subsections (c) and (i), Section 153.206, Tax
37-8 Code, are amended to read as follows:
37-9 (c) A dyed diesel fuel bonded user, agricultural bonded
37-10 user, or other user, except a diesel tax prepaid user, shall report
37-11 and pay to the state the tax at the rate imposed on each gallon of
37-12 diesel fuel delivered by him into the fuel supply tanks of a motor
37-13 vehicle, unless the tax has been paid to a permitted supplier or a
37-14 dealer, or, as a diesel tax prepaid user, the tax has been prepaid
37-15 directly to the comptroller.
37-16 (i) A dyed diesel fuel bonded user, an agricultural bonded
37-17 user, or a permitted interstate trucker is entitled to deduct
37-18 one-half of one percent of the taxable gallons of diesel fuel on
37-19 timely payment of the taxes to this state for the expense of
37-20 recordkeeping, reporting, and remitting the tax.
37-21 SECTION 39. The heading to Section 153.217, Tax Code, is
37-22 amended to read as follows:
37-23 Sec. 153.217. LIST OF SUPPLIERS, DYED DIESEL FUEL BONDED
37-24 USERS, AGRICULTURAL BONDED USERS, AVIATION FUEL DEALERS, AND DIESEL
37-25 FUEL JOBBERS.
37-26 SECTION 40. Subsection (j), Section 153.219, Tax Code, is
38-1 amended to read as follows:
38-2 (j) A supplier shall keep:
38-3 (1) an itemized statement showing by load the number
38-4 of gallons of all diesel fuel received during the preceding
38-5 calendar month for export;
38-6 (2) an itemized statement showing by load the number
38-7 of gallons of all diesel fuel exported from this state by
38-8 destination state or country;
38-9 (3) an itemized statement showing by load the number
38-10 of gallons of all diesel fuel imported during the preceding
38-11 calendar month by [destination] state or country of origin;
38-12 (4) an itemized statement differentiating between dyed
38-13 and undyed diesel fuel and showing by purchaser, end user number,
38-14 or agricultural [user] exemption number the number of gallons of
38-15 dyed and undyed diesel fuel sold tax free to a purchaser using a
38-16 signed statement in accordance with Section 153.205; and
38-17 (5) an itemized statement showing by purchaser and
38-18 permit number the number of gallons of dyed and undyed diesel fuel
38-19 sold tax free to dyed diesel fuel bonded users and agricultural
38-20 bonded users.
38-21 SECTION 41. Subsections (a) and (c), Section 153.221, Tax
38-22 Code, are amended to read as follows:
38-23 (a) On or before the 25th day of each month, a supplier, a
38-24 dealer required to collect the tax under Section 153.206(b), or a
38-25 dyed diesel fuel bonded user, agricultural bonded user, or other
38-26 user required to pay the tax under Section 153.206(c) shall file a
39-1 report of diesel fuel transactions or of diesel fuel delivered by a
39-2 dyed diesel fuel bonded user, agricultural bonded user, or other
39-3 user into the fuel tank of a motor vehicle owned or operated by the
39-4 user and such supplements as the comptroller may require and remit
39-5 the amount of tax required to be collected or to be paid during the
39-6 preceding month. A report must be filed on a form or in a manner
39-7 provided by the comptroller and contain information required by the
39-8 comptroller, showing complete and detailed information of diesel
39-9 fuel transactions or use during the preceding month. A supplier
39-10 required to file a report under this section who has not sold,
39-11 used, or distributed any diesel fuel during the reporting period
39-12 shall file with the comptroller the report setting forth the facts
39-13 or information. The failure of a supplier, dealer, or dyed diesel
39-14 fuel bonded user, agricultural bonded user, or other user to obtain
39-15 forms or software from the comptroller is no excuse for the failure
39-16 to file a report. The report must be executed by the supplier,
39-17 dealer, or user, or his representative, and is subject to the
39-18 penalties provided in this chapter.
39-19 (c) No report is required to be filed by:
39-20 (1) an aviation fuel dealer;
39-21 (2) a trip permit user;
39-22 (3) a diesel tax prepaid user;
39-23 (4) a person issuing signed statements; or
39-24 (5) [a common or contract carrier; or]
39-25 [(6)] a diesel fuel jobber.
39-26 SECTION 42. Subsection (a), Section 153.222, Tax Code, is
40-1 amended to read as follows:
40-2 (a) A dealer or diesel fuel jobber who has paid tax on
40-3 diesel fuel that has been used or sold for use by the dealer or
40-4 diesel fuel jobber for any purpose other than propelling a motor
40-5 vehicle on the public highways of this state or that has been sold
40-6 to the United States or a public school district in this state for
40-7 the exclusive use of the purchaser, or to a commercial
40-8 transportation company for exclusive use in providing public school
40-9 transportation services to a school district under Section 34.008,
40-10 Education Code, without adding the amount of the tax to his selling
40-11 price, and a user who has paid tax on any diesel fuel that has been
40-12 used by him for a purpose other than propelling a motor vehicle on
40-13 the public highways, is a public school district and has paid the
40-14 tax on diesel fuel purchased for its exclusive use, is a commercial
40-15 transportation company and has paid the tax on diesel fuel used by
40-16 the company exclusively to provide public school transportation
40-17 services to a school district under Section 34.008, Education Code,
40-18 or is a person who has paid tax on diesel fuel used in a commercial
40-19 motor vehicle as provided by Section 153.203(10) may file a claim
40-20 for a refund of taxes paid, less the deduction allowed vendors [and
40-21 a filing fee].
40-22 SECTION 43. Section 153.225, Tax Code, is amended to read as
40-23 follows:
40-24 Sec. 153.225. DIESEL FUEL TAX REFUND PAYMENTS [AND FILING
40-25 FEE]. [(a)] After examination and approval of the refund claim,
40-26 the comptroller before issuing a refund warrant shall deduct from
41-1 the amount of the refund payment[:]
41-2 [(1)] the 2 percent deducted originally by the
41-3 supplier on the sale or delivery of the diesel fuel[; and]
41-4 [(2) $1.50 as a filing fee.]
41-5 [(b) The filing fees shall be set aside for the use and
41-6 benefit of the comptroller in the administration and enforcement of
41-7 the provisions of this chapter, and for payment of expenses in
41-8 furnishing the claim forms and other forms. All filing fees shall
41-9 be paid into the state treasury and shall be paid out on vouchers
41-10 and warrants in the manner prescribed by law].
41-11 SECTION 44. Subsections (c) and (d), Section 153.308, Tax
41-12 Code, are amended to read as follows:
41-13 (c) The tax on one percent of the taxable gallons of
41-14 liquefied gas sold in this state shall be allocated to the
41-15 permitted dealer making the sale for the expense of collecting,
41-16 accounting for, reporting, and timely remitting the taxes collected
41-17 and keeping the records. The allocation allowance shall be
41-18 deducted by the permitted dealers in the payment to the state.
41-19 (d) The tax of one-half of one percent of the taxable
41-20 gallons of liquefied gas used in this state by persons permitted as
41-21 interstate truckers shall be allocated to the interstate trucker
41-22 making the use of the liquefied gas for the expense of accounting
41-23 for, reporting, and timely remitting the taxes due.
41-24 SECTION 45. Subsection (c), Section 153.311, Tax Code, is
41-25 amended to read as follows:
41-26 (c) A permitted interstate trucker is entitled to a refund
42-1 of the amount of the Texas liquefied gas tax paid on each gallon of
42-2 liquefied gas subsequently used outside this state. On
42-3 verification by the comptroller that the interstate trucker's
42-4 report was timely filed with all information required, the
42-5 comptroller [he] shall issue a warrant to the interstate trucker
42-6 for the amount of the refund less the one percent deducted
42-7 originally by the permitted dealer making the sale [and a filing
42-8 fee of $1.50]. Failure to file an interstate trucker report by the
42-9 25th of the month following the end of a calendar quarter forfeits
42-10 the right to a refund.
42-11 SECTION 46. Subdivision (13), Section 154.001, Tax Code, is
42-12 amended to read as follows:
42-13 (13) "Permit holder" means a bonded agent,
42-14 distributor, wholesaler, manufacturer, importer, or retailer
42-15 required to obtain a permit under Section 154.101.
42-16 SECTION 47. Subsections (a), (b), and (h), Section 154.101,
42-17 Tax Code, are amended to read as follows:
42-18 (a) A person may not engage in business as a distributor,
42-19 wholesaler, bonded agent, manufacturer, importer, or retailer
42-20 unless the person has applied for and received the applicable
42-21 permit from the comptroller.
42-22 (b) Each distributor, wholesaler, bonded agent,
42-23 manufacturer, importer, or retailer shall obtain a permit for each
42-24 place of business owned or operated by the distributor, wholesaler,
42-25 bonded agent, manufacturer, importer, or retailer.
42-26 (h) Permits for engaging in business as a distributor,
43-1 wholesaler, bonded agent, manufacturer, importer, or retailer shall
43-2 be governed exclusively by the provisions of this code.
43-3 SECTION 48. Subsection (a), Section 154.102, Tax Code, is
43-4 amended to read as follows:
43-5 (a) The comptroller may issue a combination permit for
43-6 cigarettes and tobacco products to a person who is a distributor,
43-7 wholesaler, bonded agent, manufacturer, importer, or retailer as
43-8 defined by this chapter and Chapter 155 for both cigarettes and
43-9 tobacco products.
43-10 SECTION 49. Subsection (a), Section 154.110, Tax Code, is
43-11 amended to read as follows:
43-12 (a) The comptroller shall issue a permit to a distributor,
43-13 wholesaler, bonded agent, manufacturer, importer, or retailer if
43-14 the comptroller:
43-15 (1) has received an application and fee, if required;
43-16 (2) believes that the applicant has complied with
43-17 Section 154.101; and
43-18 (3) determines that issuing the permit will not
43-19 jeopardize the administration and enforcement of this chapter.
43-20 SECTION 50. Subsection (a), Section 154.501, Tax Code, is
43-21 amended to read as follows:
43-22 (a) A person violates this chapter if the person:
43-23 (1) is a distributor, wholesaler, manufacturer,
43-24 importer, bonded agent, manufacturer's representative, or retailer
43-25 and fails to keep records required by this chapter;
43-26 (2) engages in the business of a bonded agent,
44-1 distributor, wholesaler, manufacturer, importer, or retailer
44-2 without a valid permit;
44-3 (3) is a distributor, wholesaler, manufacturer,
44-4 importer, bonded agent, or retailer and fails to make a report or
44-5 makes a false or incomplete report or application required by this
44-6 chapter to the comptroller; or
44-7 (4) is a person affected by this chapter and fails or
44-8 refuses to abide by or violates a provision of this chapter or a
44-9 rule adopted by the comptroller under this chapter.
44-10 SECTION 51. Subdivision (11), Section 155.001, Tax Code, is
44-11 amended to read as follows:
44-12 (11) "Permit holder" means a bonded agent,
44-13 distributor, wholesaler, manufacturer, importer, or retailer
44-14 required to obtain a permit under Section 155.041.
44-15 SECTION 52. Subsections (a), (b), and (h), Section 155.041,
44-16 Tax Code, are amended to read as follows:
44-17 (a) A person may not engage in business as a distributor,
44-18 wholesaler, bonded agent, manufacturer, importer, or retailer
44-19 unless the person has applied for and received the applicable
44-20 permit from the comptroller.
44-21 (b) Each distributor, wholesaler, bonded agent,
44-22 manufacturer, importer, or retailer shall obtain a permit for each
44-23 place of business owned or operated by the distributor, wholesaler,
44-24 bonded agent, manufacturer, importer, or retailer.
44-25 (h) Permits for engaging in business as a distributor,
44-26 wholesaler, bonded agent, manufacturer, importer, or retailer shall
45-1 be governed exclusively by the provisions of this code.
45-2 SECTION 53. Subsection (a), Section 155.048, Tax Code, is
45-3 amended to read as follows:
45-4 (a) The comptroller shall issue a permit to a distributor,
45-5 wholesaler, bonded agent, manufacturer, importer, or retailer if
45-6 the comptroller:
45-7 (1) has received an application and fee, if required;
45-8 (2) does not reject the application and deny the
45-9 permit under Section 155.0481; and
45-10 (3) determines that issuing the permit will not
45-11 jeopardize the administration and enforcement of this chapter.
45-12 SECTION 54. Section 155.111, Tax Code, is amended by adding
45-13 Subsection (d) to read as follows:
45-14 (d) If more than 50 percent of all untaxed tobacco products
45-15 received by the distributor in this state are actually sold outside
45-16 of this state, the distributor shall include in the report only
45-17 tobacco products that are sold in this state.
45-18 SECTION 55. Subsection (a), Section 155.201, Tax Code, is
45-19 amended to read as follows:
45-20 (a) A person violates this chapter if the person:
45-21 (1) is a distributor, wholesaler, manufacturer,
45-22 importer, bonded agent, manufacturer's representative, or retailer
45-23 and fails to keep records required by this chapter;
45-24 (2) engages in the business of a bonded agent,
45-25 distributor, wholesaler, manufacturer, importer, or retailer
45-26 without a valid permit;
46-1 (3) is a distributor, wholesaler, manufacturer,
46-2 importer, bonded agent, or retailer and fails to make a report
46-3 required by this chapter to the comptroller or makes a false or
46-4 incomplete report or application required by this chapter to the
46-5 comptroller; or
46-6 (4) is a person affected by this chapter and fails or
46-7 refuses to abide by or violates a provision of this chapter or a
46-8 rule adopted by the comptroller under this chapter.
46-9 SECTION 56. Section 171.076, Tax Code, is amended to read as
46-10 follows:
46-11 Sec. 171.076. EXEMPTION--COOPERATIVE CREDIT ASSOCIATION. A
46-12 cooperative credit association incorporated under Chapter 55,
46-13 Agriculture Code, an organization organized under 12 U.S.C. Section
46-14 2071, or an agricultural credit association regulated by the Farm
46-15 Credit Administration is exempted from the franchise tax.
46-16 SECTION 57. Section 171.1032, Tax Code, is amended by
46-17 amending Subsection (a) and adding Subsection (c) to read as
46-18 follows:
46-19 (a) Except for the gross receipts of a corporation that are
46-20 subject to the provisions of Section 171.1061, in apportioning
46-21 taxable earned surplus, the gross receipts of a corporation from
46-22 its business done in this state is the sum of the corporation's
46-23 receipts from:
46-24 (1) each sale of tangible personal property if the
46-25 property is delivered or shipped to a buyer in this state
46-26 regardless of the FOB point or another condition of the sale, and
47-1 each sale of tangible personal property shipped from this state to
47-2 a purchaser in another state in which the seller is not subject to
47-3 any tax on, or measured by, net income, without regard to whether
47-4 the tax is imposed;
47-5 (2) each service performed in this state;
47-6 (3) each rental of property situated in this state;
47-7 (4) the use of a patent, copyright, trademark,
47-8 franchise, or license in this state;
47-9 (5) each sale of real property located in this state,
47-10 including royalties from oil, gas, or other mineral interests;
47-11 [and]
47-12 (6) each partnership or joint venture to the extent
47-13 provided by Subsection (c); and
47-14 (7) other business done in this state.
47-15 (c) A corporation shall include in its gross receipts
47-16 computed under Subsection (a) the corporation's share of the gross
47-17 receipts of each partnership and joint venture of which the
47-18 corporation is a part apportioned to this state as though the
47-19 corporation directly earned the receipts, including receipts from
47-20 business done with the corporation.
47-21 SECTION 58. Section 171.1051, Tax Code, is amended by
47-22 amending Subsection (a) and adding Subsection (d) to read as
47-23 follows:
47-24 (a) Except for the gross receipts of a corporation that are
47-25 subject to the provisions of Section 171.1061, in apportioning
47-26 taxable earned surplus, the gross receipts of a corporation from
48-1 its entire business is the sum of the corporation's receipts from:
48-2 (1) each sale of the corporation's tangible personal
48-3 property;
48-4 (2) each service, rental, or royalty; [and]
48-5 (3) each partnership and joint venture as provided by
48-6 Subsection (d); and
48-7 (4) other business.
48-8 (d) A corporation shall include in its gross receipts
48-9 computed under Subsection (a) the corporation's share of the gross
48-10 receipts of each partnership and joint venture of which the
48-11 corporation is a part.
48-12 SECTION 59. Section 171.106, Tax Code, is amended by adding
48-13 Subsection (h) to read as follows:
48-14 (h) A banking corporation shall exclude from the numerator
48-15 of the bank's apportionment factor interest earned on federal funds
48-16 and interest earned on securities sold under an agreement to
48-17 repurchase that are held in this state in a correspondent bank that
48-18 is domiciled in this state. In this subsection, "correspondent"
48-19 has the meaning assigned by 12 C.F.R. Section 206.2(c).
48-20 SECTION 60. Section 171.109, Tax Code, is amended by adding
48-21 Subsection (n) to read as follows:
48-22 (n) A corporation must use the equity method of accounting
48-23 when reporting an investment in a partnership or joint venture.
48-24 SECTION 61. Section 171.1121, Tax Code, is amended by adding
48-25 Subsection (e) to read as follows:
48-26 (e) A corporation's share of a partnership's gross receipts
49-1 that is included in the corporation's federal taxable income must
49-2 be used in computing the corporation's gross receipts under this
49-3 section. Unless otherwise provided by this chapter, a corporation
49-4 may not deduct costs incurred from the corporation's share of a
49-5 partnership's gross receipts. The gross receipts must be
49-6 apportioned as though the corporation directly earned them.
49-7 SECTION 62. Subsection (b), Section 171.260, Tax Code, is
49-8 amended to read as follows:
49-9 (b) The savings and loan commissioner shall appoint a
49-10 conservator under Subtitle B or C, Title 3, Finance Code, to pay
49-11 the franchise tax of a savings and loan association [corporation]
49-12 that is organized under the laws of this state and that the
49-13 commissioner certifies as being delinquent in the payment of the
49-14 association's [corporation's] franchise tax.
49-15 SECTION 63. Subsection (d), Section 171.501, Tax Code, is
49-16 amended to read as follows:
49-17 (d) The amount of a refund under this section is the lesser
49-18 of $5,000 or 25 percent of the amount of franchise tax due [taxes
49-19 paid] for any one privilege period before any other applicable
49-20 credits. For purposes of this subsection, the initial and second
49-21 periods are considered to be the same privilege period.
49-22 SECTION 64. Section 171.655, Tax Code, is amended to read as
49-23 follows:
49-24 Sec. 171.655. LIMITATION. The credit claimed for each
49-25 privilege period may not exceed 50 percent of the amount of [net]
49-26 franchise tax due for the privilege period before [after] any other
50-1 applicable tax credits.
50-2 SECTION 65. Section 171.685, Tax Code, is amended to read as
50-3 follows:
50-4 Sec. 171.685. LIMITATION. The total credits claimed under
50-5 this subchapter for a privilege period may not exceed 50 percent of
50-6 the amount of [net] franchise tax due for the privilege period
50-7 before [after] any other applicable tax credits.
50-8 SECTION 66. Subsection (b), Section 171.705, Tax Code, is
50-9 amended to read as follows:
50-10 (b) A corporation may not claim a credit in an amount that
50-11 exceeds 90 percent of the amount of tax due for the report before
50-12 any other applicable credits.
50-13 SECTION 67. Section 171.753, Tax Code, is amended to read as
50-14 follows:
50-15 Sec. 171.753. CALCULATION OF CREDIT. A corporation may
50-16 establish a credit equal to five [25] percent of the total wages
50-17 and salaries paid by the corporation for qualifying jobs during the
50-18 period upon which the tax is based.
50-19 SECTION 68. Section 171.754, Tax Code, is amended to read as
50-20 follows:
50-21 Sec. 171.754. LENGTH OF CREDIT. The credit established
50-22 shall be established on [claimed in five equal installments of
50-23 one-fifth the credit amount over the] five consecutive reports
50-24 beginning with the report based upon the period during which the
50-25 qualifying jobs were created.
50-26 SECTION 69. Section 171.756, Tax Code, is amended to read as
51-1 follows:
51-2 Sec. 171.756. CARRYFORWARD. (a) If a corporation is
51-3 eligible for a credit [from an installment] that exceeds the
51-4 limitations under Section 171.755(a) or (b), the corporation may
51-5 carry the unused credit forward for not more than five consecutive
51-6 reports.
51-7 (b) A carryforward is considered the remaining portion of a
51-8 credit [an installment] that cannot be claimed in the current year
51-9 because of the tax limitation under Section 171.755. A
51-10 carryforward is added to the next year's [installment of the]
51-11 credit in determining the tax limitation for that year. A credit
51-12 carryforward from a previous report is considered to be utilized
51-13 before the current year credit [installment].
51-14 SECTION 70. Section 171.831, Tax Code, is amended to read as
51-15 follows:
51-16 Sec. 171.831. DEFINITION. In this subchapter, "school-age
51-17 child care" means care provided before or [and] after school and
51-18 during the summer and holidays for children who are at least five
51-19 years of age but younger than 14 years of age.
51-20 SECTION 71. Subsection (c), Section 171.834, Tax Code, is
51-21 amended to read as follows:
51-22 (c) A corporation may not claim a credit in an amount that
51-23 exceeds 50 percent of the amount of [net] franchise tax due, before
51-24 [after] applying any other credits, for the reporting period.
51-25 SECTION 72. Chapter 171, Tax Code, is amended by adding
51-26 Subchapter S to read as follows:
52-1 SUBCHAPTER S. CREDITS LIMITATION
52-2 Sec. 171.851. LIMITATION. The total credits claimed under
52-3 this chapter for a report, including the amount of any carryforward
52-4 credits, may not exceed the amount of franchise tax due for the
52-5 report.
52-6 SECTION 73. Section 211.055, Tax Code, is amended to read as
52-7 follows:
52-8 Sec. 211.055. MAXIMUM TAX. The amount of tax imposed by
52-9 this chapter may not exceed the amount of the tax imposed under
52-10 Section 2001, Internal Revenue Code, reduced by the unified credit
52-11 provided under Section 2010, Internal Revenue Code [taxes imposed
52-12 by this chapter, when added to the federal tax as finally assessed
52-13 and determined, may not exceed the amount of the federal tax which,
52-14 without application of this chapter and the federal credit and the
52-15 generation-skipping transfer tax credit to which it refers, would
52-16 otherwise be payable to the federal government under Subtitle B,
52-17 Chapters 11 and 13, Internal Revenue Code].
52-18 SECTION 74. Section 321.102, Tax Code, is amended by
52-19 amending Subsection (g) and adding Subsections (h) and (i) to read
52-20 as follows:
52-21 (g) Subsections (e) and (f) do not apply if and during any
52-22 period in which a local governmental entity has outstanding
52-23 indebtedness or obligations that are payable wholly or partly from
52-24 the sales and use tax revenue of the entity. A municipality may
52-25 not implement the imposition or increase of the sales and use tax
52-26 as a result of the circumstances described by Subsection (e) if, as
53-1 a result of the implementation of that imposition or increase, the
53-2 combined rate of all sales and use taxes imposed by the
53-3 municipality, the local governmental entity, and any other
53-4 political subdivisions having territory in the district would
53-5 exceed two percent at any location in the municipality.
53-6 (h) A transit authority is not a local governmental entity
53-7 for the purposes of Subsections (e) and (f).
53-8 (i) Subsection (g) does not apply to a local governmental
53-9 entity or political subdivision created under Chapter 326, Local
53-10 Government Code.
53-11 SECTION 75. Subchapter D, Chapter 321, Tax Code, is amended
53-12 by adding Section 321.312 to read as follows:
53-13 Sec. 321.312. RETENTION OF CERTAIN MUNICIPAL SALES TAXES. A
53-14 municipality that holds a sales and use tax permit issued by the
53-15 comptroller and that imposes a sales and use tax may retain the
53-16 portion of the tax that the municipality collects and that
53-17 constitutes the municipality's own tax. The municipality shall
53-18 remit to the comptroller all other applicable local sales and use
53-19 taxes and the state sales and use tax.
53-20 SECTION 76. Subchapter D, Chapter 322, Tax Code, is amended
53-21 by adding Section 322.306 to read as follows:
53-22 Sec. 322.306. RETENTION OF CERTAIN SPECIAL PURPOSE DISTRICT
53-23 SALES TAXES. A taxing entity that holds a sales and use tax permit
53-24 issued by the comptroller and that imposes a sales and use tax may
53-25 retain the portion of the tax that the taxing entity collects and
53-26 that constitutes the entity's own tax. The taxing entity shall
54-1 remit to the comptroller all other applicable local sales and use
54-2 taxes and the state sales and use tax.
54-3 SECTION 77. Subchapter D, Chapter 323, Tax Code, is amended
54-4 by adding Section 323.312 to read as follows:
54-5 Sec. 323.312. RETENTION OF CERTAIN COUNTY SALES TAXES. A
54-6 county that holds a sales and use tax permit issued by the
54-7 comptroller and that imposes a sales and use tax may retain the
54-8 portion of the tax that the county collects and that constitutes
54-9 the county's own tax. The county shall remit to the comptroller
54-10 all other applicable local sales and use taxes and the state sales
54-11 and use tax.
54-12 SECTION 78. Subsection (a), Section 311.045, Health and
54-13 Safety Code, is amended to read as follows:
54-14 (a) A nonprofit hospital or hospital system shall annually
54-15 satisfy the requirements of this subchapter and of Sections
54-16 11.18(d)(1), 151.310(a)(2) and (e), and 171.063(a)(1), Tax Code, to
54-17 provide community benefits which include charity care and
54-18 government-sponsored indigent health care by complying with one or
54-19 more of the standards set forth in Subsection (b). The hospital or
54-20 hospital system shall file a statement with the Bureau of State
54-21 Health Data and Policy Analysis at the department and[, with] the
54-22 chief appraiser of the local appraisal district[, and with the
54-23 comptroller's office] no later than the 120th day after the
54-24 hospital's or hospital system's fiscal year ends, stating which of
54-25 the standards in Subsection (b) have been satisfied, provided,
54-26 however, that the first report shall be filed no later than the
55-1 120th day after the end of the hospital's or hospital system's
55-2 fiscal year ending during 1994. For hospitals in a hospital
55-3 system, the corporate parent may elect to satisfy the charity care
55-4 requirements of this subchapter for each of the hospitals within
55-5 the system on a consolidated basis.
55-6 SECTION 79. Subdivision (1), Section 2153.002, Occupations
55-7 Code, is amended to read as follows:
55-8 (1) "Coin-operated machine" means any kind of machine
55-9 or device operated by or with a coin or other United States
55-10 currency, metal slug, token, electronic card, or check, including a
55-11 music or skill or pleasure coin-operated machine.
55-12 SECTION 80. Section 74.402, Property Code, is amended to
55-13 read as follows:
55-14 Sec. 74.402. NOTICE OF SALE. Before the 21st day preceding
55-15 the day on which a public sale is held under Section 74.401, the
55-16 comptroller shall publish notice of the sale in a newspaper of
55-17 general circulation in Travis County or in the county where the
55-18 sale is to be held. If the public sale is to be held on the
55-19 Internet or by an online auction, the comptroller may post the
55-20 notice on the comptroller's own website before the seventh day
55-21 preceding the date on which the sale or auction is held.
55-22 SECTION 81. Subsection (e), Section 11.011, Texas Racing Act
55-23 (Article 179e, Vernon's Texas Civil Statutes), is amended to read
55-24 as follows:
55-25 (e) The racetrack where the wager is made is responsible for
55-26 reporting and remitting the state's share of the pari-mutuel pool.
56-1 [If intrastate wagering pools are combined between tracks, the
56-2 track where the race originates is responsible for the state's
56-3 share of the pari-mutuel pool regardless of whether a shortage or
56-4 error occurred at the originating track or receiving track.]
56-5 SECTION 82. Section 1, Article 6550c-1, Revised Statutes, is
56-6 amended by amending Subdivision (6) and adding Subdivision (7) to
56-7 read as follows:
56-8 (6) "District property" means all property the
56-9 district owns or leases under a long-term lease.
56-10 (7) "System" means all of the commuter rail and
56-11 intermodal facilities leased or owned by or operated on behalf of a
56-12 district created under this article.
56-13 SECTION 83. Section 9, Article 6550c-1, Revised Statutes, is
56-14 amended to read as follows:
56-15 Sec. 9. SALES AND USE TAXES. (a) A [district shall collect
56-16 or cause to be collected] sales and use tax is imposed [taxes] on
56-17 items sold on district property. The sales and use tax shall be
56-18 imposed [collected] at the rate of the highest combination of
56-19 [state and] local sales and use taxes imposed at the time of the
56-20 district's creation in any local governmental jurisdiction which is
56-21 a member of a district. The [After deducting the state share of
56-22 sales and use taxes, the] comptroller shall remit to a district the
56-23 local sales and use tax collected on the district's property. All
56-24 other local sales and use taxes that would otherwise be imposed on
56-25 district property are preempted by the imposition of this tax.
56-26 (b) The comptroller shall administer, collect, and enforce a
57-1 tax imposed under this Act. Chapter 321, Tax Code, governs the
57-2 computation, administration, governance, and use of the tax except
57-3 as inconsistent with this Act.
57-4 (c) The district shall notify the comptroller in writing by
57-5 United States registered or certified mail of the district's
57-6 creation and of its intent to impose the sales and use tax under
57-7 this Act. The district shall provide to the comptroller all
57-8 information required to implement the tax, including:
57-9 (1) an adequate map showing the property boundaries of
57-10 the district;
57-11 (2) a certified copy of the resolution of the district
57-12 board adopting the tax; and
57-13 (3) certified copies of the resolutions of the
57-14 governing bodies of the municipalities creating the district and of
57-15 the commissioners courts in the counties in which the
57-16 municipalities are located.
57-17 (d) Not later than the 30th day after the date the
57-18 comptroller receives the notice, map, and other information, the
57-19 comptroller shall inform the district whether the comptroller is
57-20 prepared to administer the tax.
57-21 (e) At the same time the district notifies the comptroller
57-22 under Subsection (c) of this section, the district shall notify
57-23 each affected local governmental jurisdiction of the district's
57-24 creation and provide each jurisdiction with an adequate map showing
57-25 the property boundaries of the district.
57-26 (f) Not later than the 30th day after the date the district
58-1 acquires additional territory, the district shall notify the
58-2 comptroller and each affected local governmental jurisdiction of
58-3 the acquisition. The district must include with each notification
58-4 an adequate map showing the new property boundaries of the district
58-5 and the date the additional territory was acquired. Not later than
58-6 the 30th day after the date the comptroller receives the notice
58-7 under this subsection, the comptroller shall inform the district
58-8 whether the comptroller is prepared to administer the tax in the
58-9 additional territory.
58-10 (g) A tax imposed under this Act or the repeal of a tax
58-11 abolished under this Act takes effect on the first day of the first
58-12 complete calendar quarter that occurs after the expiration of the
58-13 first complete calendar quarter that occurs after the date the
58-14 comptroller receives a notice of the action as required by this
58-15 section.
58-16 SECTION 84. The following provisions of the Tax Code are
58-17 repealed:
58-18 (1) Subsections (d) and (e), Section 151.319;
58-19 (2) Subsections (c) and (d), Section 171.757; and
58-20 (3) Subsection (b), Section 201.052.
58-21 SECTION 85. Each change in law made by this Act to the
58-22 following provisions is a clarification of existing law and does
58-23 not imply that existing law may be construed as inconsistent with
58-24 the law as amended by this Act:
58-25 (1) Subsection (b), Section 111.0081, Tax Code;
58-26 (2) Subsection (a), Section 151.007, Tax Code;
59-1 (3) Section 151.010, Tax Code;
59-2 (4) Section 151.057, Tax Code;
59-3 (5) Subsection (b), Section 151.257, Tax Code;
59-4 (6) Subsection (a), Section 151.308, Tax Code;
59-5 (7) Subsection (d), Section 151.310, Tax Code;
59-6 (8) Section 151.313, Tax Code;
59-7 (9) Subsection (a), Section 151.317, Tax Code;
59-8 (10) Subsections (a) and (t), Section 151.318, Tax
59-9 Code;
59-10 (11) Subsection (e), Section 151.3185, Tax Code;
59-11 (12) Subsection (b), Section 151.319, Tax Code;
59-12 (13) Subsection (a), Section 152.047, Tax Code;
59-13 (14) Subsection (d), Section 152.091, Tax Code;
59-14 (15) Subdivision (25), Section 153.001, Tax Code;
59-15 (16) Subsection (i), Section 153.018, Tax Code;
59-16 (17) Subsection (a), Section 153.117, Tax Code;
59-17 (18) Section 153.205, Tax Code;
59-18 (19) Subsection (c), Section 153.206, Tax Code;
59-19 (20) Subsection (j), Section 153.219, Tax Code;
59-20 (21) Subsections (a) and (c), Section 153.221, Tax
59-21 Code;
59-22 (22) Subdivision (13), Section 154.001, Tax Code;
59-23 (23) Subsections (a), (b), and (h), Section 154.101,
59-24 Tax Code;
59-25 (24) Subsection (a), Section 154.102, Tax Code;
59-26 (25) Subsection (a), Section 154.110, Tax Code;
60-1 (26) Subsection (a), Section 154.501, Tax Code;
60-2 (27) Subdivision (11), Section 155.001, Tax Code;
60-3 (28) Subsections (a), (b), and (h), Section 155.041,
60-4 Tax Code;
60-5 (29) Subsection (a), Section 155.048, Tax Code;
60-6 (30) Subsection (a), Section 155.201, Tax Code;
60-7 (31) Subsections (a) and (c), Section 171.1032, Tax
60-8 Code;
60-9 (32) Subsections (a) and (d), Section 171.1051, Tax
60-10 Code;
60-11 (33) Subsection (e), Section 171.1121, Tax Code;
60-12 (34) Subsection (b), Section 171.260, Tax Code;
60-13 (35) Section 171.831, Tax Code; and
60-14 (36) Subchapter S, Chapter 171, Tax Code.
60-15 SECTION 86. (a) The changes to Subsection (b), Section
60-16 326.023, Local Government Code, made by Section 2 of this Act apply
60-17 only to a petition filed with a commissioners court on or after the
60-18 effective date of that section. A petition filed before that date
60-19 is governed by the law in effect on the date the petition is filed,
60-20 and that law is continued in effect for that purpose.
60-21 (b) The changes to Section 326.029, Local Government Code,
60-22 made by Section 3 of this Act apply only to an order issued on or
60-23 after the effective date of that section. An order issued before
60-24 that date is governed by the law in effect on the date the order is
60-25 issued, and that law is continued in effect for that purpose.
60-26 SECTION 87. The comptroller of public accounts may adopt
61-1 rules and take other actions before October 1, 2001, as the
61-2 comptroller considers necessary or advisable to prepare for this
61-3 Act to take effect.
61-4 SECTION 88. (a) Except as otherwise provided by this
61-5 section, this Act takes effect September 1, 2001.
61-6 (b) Sections 12, 13, 14, 15, 17 through 26, 29 through 55,
61-7 75 through 77, and 81 of this Act, and Subdivisions (1) and (3),
61-8 Section 84, of this Act, take effect October 1, 2001.
61-9 (c) Sections 57 through 72 of this Act and Subdivision (2),
61-10 Section 84, of this Act take effect January 1, 2002, and apply to a
61-11 report originally due on or after that date.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1125 passed the Senate on
April 5, 2001, by a viva-voce vote; and that the Senate concurred
in House amendment on May 25, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1125 passed the House, with
amendment, on May 17, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor