77R14649 CBH-F
By Armbrister S.B. No. 1125
Substitute the following for S.B. No. 1125:
By McCall C.S.S.B. No. 1125
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to technical changes to taxes and fees administered by the
1-3 comptroller of public accounts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subsection (k), Section 43.0751, Local Government
1-6 Code, is amended to read as follows:
1-7 (k) A municipality that has annexed all or part of a
1-8 district for limited purposes under this section may impose a
1-9 [retail] sales and use tax within the boundaries of the part of the
1-10 district that is annexed for limited purposes. Except to the
1-11 extent it is inconsistent with this section, Chapter 321, Tax Code,
1-12 governs the imposition, computation, administration, governance,
1-13 and abolition of the sales and use tax.
1-14 SECTION 2. Subsection (b), Section 326.023, Local Government
1-15 Code, is amended to read as follows:
1-16 (b) The petition must:
1-17 (1) include a name for the proposed district that
1-18 describes the location of the district followed by the words
1-19 "Library District";
1-20 (2) describe the boundaries of the proposed district
1-21 by:
1-22 (A) metes and bounds;
1-23 (B) lot and block number, if there is a recorded
1-24 map or plat and survey of the area; or
2-1 (C) other sufficient legal description;
2-2 (3) include the names of five persons who are willing
2-3 and qualified to serve as the initial board of trustees of the
2-4 district if elected at the election to create the district; and
2-5 (4) include the rate of the sales and use tax that
2-6 would be imposed by the board of the proposed district on approval
2-7 of the district.
2-8 SECTION 3. Section 326.029, Local Government Code, is
2-9 amended by amending Subsection (c) and adding Subsection (d) to
2-10 read as follows:
2-11 (c) The order canvassing the results of the election must:
2-12 (1) contain a description of the district's boundaries
2-13 and a map of the district; [and]
2-14 (2) state the date of the election; and
2-15 (3) state the total number of votes cast for and
2-16 against the ballot proposition [be filed in the deed records of the
2-17 county in which the district is located].
2-18 (d) The order issued by a commissioners court canvassing the
2-19 results of the election must be filed in the deed records of the
2-20 county in which the district is located.
2-21 SECTION 4. Subchapter F, Chapter 363, Local Government Code,
2-22 is amended by adding Section 363.262 to read as follows:
2-23 Sec. 363.262. EFFECTIVE DATE OF TAX CHANGE. (a) If less
2-24 than a majority of the votes cast in a continuation referendum are
2-25 for the continuation of the district or if a majority of the votes
2-26 cast in a dissolution referendum are for dissolution of the
2-27 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
3-27 taxes on property in the zone subject to the duration limits of
4-1 Section 312.204, Tax Code; and
4-2 (4) set baseline performance standards, such as the
4-3 Energy Star Program as developed by the Department of Energy, to
4-4 encourage the use of alternative building materials that address
4-5 concerns relating to the environment or to the building costs,
4-6 maintenance, or energy consumption.
4-7 SECTION 6. Section 383.104, Local Government Code, is
4-8 amended by adding Subsection (c) to read as follows:
4-9 (c) The district's sales and use tax is automatically
4-10 discontinued by operation of law if no tax revenue is collected
4-11 within the district before the first anniversary of the date the
4-12 tax took effect. The comptroller shall notify the board and the
4-13 commissioners court of the county in which the district is located
4-14 of the discontinuance of the tax. The district may authorize a new
4-15 sales and use tax by following the procedures provided by this
4-16 subchapter for imposition of the tax.
4-17 SECTION 7. Subsection (a), Section 25.00212, Government
4-18 Code, is amended to read as follows:
4-19 (a) At the end of each state fiscal year the comptroller
4-20 shall determine the amounts deposited in the judicial fund under
4-21 Section 51.704 [51.703] and the amounts paid to the counties under
4-22 Section 25.00211. If the total amount paid under Section 51.704 by
4-23 all counties exceeds the total amount paid to counties under
4-24 Section 25.00211, the state shall remit the excess to the counties
4-25 proportionately based on the percentage of the total paid by each
4-26 county.
4-27 SECTION 8. Subsection (b), Section 111.0081, Tax Code, is
5-1 amended to read as follows:
5-2 (b) This section does not apply to a determination under
5-3 Section 111.022 [151.506 of this code].
5-4 SECTION 9. Subsection (e), Section 111.301, Tax Code, is
5-5 amended to read as follows:
5-6 (e) Application for the refund is to the comptroller. The
5-7 application must:
5-8 (1) be made on the form prescribed by the comptroller;
5-9 (2) have attached a tax receipt from the assessor and
5-10 collector of taxes for the school district showing full payment of
5-11 school district ad valorem taxes on the property for the tax year
5-12 for which the refund is sought; and
5-13 (3) include sufficient information for the comptroller
5-14 to determine the portion of the ad valorem taxes paid to a school
5-15 district by the person for the applicable tax year on the property
5-16 that the person would not have been required to pay if the school
5-17 district had entered into a tax abatement agreement concerning the
5-18 property that included the same terms, including terms governing
5-19 the portion of the property that is to be exempt from taxation
5-20 under the agreement, as specified by the [applicable] municipal or
5-21 county tax abatement agreement on which the refund amount is to be
5-22 based.
5-23 SECTION 10. Section 111.302, Tax Code, is amended by
5-24 amending Subsections (b) and (c) and adding Subsection (d) to read
5-25 as follows:
5-26 (b) Applications for refund must be filed before August 1 of
5-27 the year following the tax year for which the person applying has
6-1 paid ad valorem taxes described by Section 111.301(a). Within 90
6-2 [60] days thereafter, the comptroller shall compute the total
6-3 amount eligible for refund.
6-4 (c) If the total amount of eligible refunds claimed by all
6-5 persons, as determined under Subsection (b), is less than $10
6-6 million, the amount of a tax refund is equal to the ad valorem
6-7 taxes paid to a school district by the person for the applicable
6-8 tax year on the property that the person would not have been
6-9 required to pay if the school district had entered into a tax
6-10 abatement agreement covering the property that included the same
6-11 terms, including terms governing the portion of the property that
6-12 is to be exempt from taxation under the agreement, as specified by
6-13 the [applicable] municipal or county tax abatement agreement on
6-14 which the refund amount is to be based. If the total amount of
6-15 eligible refunds claimed by all persons, as determined under
6-16 Subsection (b), is greater than $10 million, the comptroller shall
6-17 reduce the amount of each refund as necessary to allow all
6-18 claimants to share proportionally the $10 million available. The
6-19 amount by which a refund is reduced under this subsection may not
6-20 be included in a claim for a refund in a subsequent year.
6-21 (d) If an eligible person has entered into tax abatement
6-22 agreements with the municipality and the county, and the agreements
6-23 provided to the comptroller show that the agreements exempt
6-24 different portions of property value, the refund amount shall be
6-25 computed based on the greater of the portions exempted.
6-26 SECTION 11. Section 111.304, Tax Code, is amended to read as
6-27 follows:
7-1 Sec. 111.304. EVALUATION; ANNUAL REPORT. Not later than
7-2 [December 1, 1999, and] December 1 of each [subsequent] year, the
7-3 comptroller shall submit an annual report to the legislature. The
7-4 report:
7-5 (1) must document the applications for refunds filed
7-6 with the comptroller under this subchapter;
7-7 (2) must document the refunds paid by the comptroller
7-8 under this chapter; and
7-9 (3) [must contain relevant information obtained from
7-10 the Texas Department of Commerce, including information to
7-11 demonstrate the relationship between tax refunds under this
7-12 subchapter and the economy; and]
7-13 [(4)] may include any other relevant information that
7-14 the comptroller determines is applicable to this subchapter or to
7-15 Chapter 312.
7-16 SECTION 12. Subsection (a), Section 151.007, Tax Code, is
7-17 amended to read as follows:
7-18 (a) Except as provided by Subsections (c) and (d) [of this
7-19 section], "sales price" or "receipts" means the total amount for
7-20 which a taxable item is sold, leased, or rented, valued in money,
7-21 without a deduction for the cost of:
7-22 (1) the taxable item sold, leased, or rented;
7-23 (2) the materials used, labor or service employed,
7-24 interest, losses, or other expenses;
7-25 (3) the transportation or installation of tangible
7-26 personal property; or
7-27 (4) transportation incident to the performance of a
8-1 taxable service.
8-2 SECTION 13. Section 151.010, Tax Code, is amended to read as
8-3 follows:
8-4 Sec. 151.010. "TAXABLE ITEM." "Taxable item" means tangible
8-5 personal property and taxable services. Except as otherwise
8-6 provided by this chapter, the sale or use of a taxable item in
8-7 electronic form instead of on physical media does not alter the
8-8 item's tax status.
8-9 SECTION 14. Section 151.057, Tax Code, is amended to read as
8-10 follows:
8-11 Sec. 151.057. SERVICES BY EMPLOYEES. The following services
8-12 are not taxable under this chapter:
8-13 (1) a service performed by an employee for his
8-14 employer in the regular course of business, within the scope of the
8-15 employee's duties, and for which the employee is paid his regular
8-16 wages or salary;
8-17 (2) a service performed by an employee of a temporary
8-18 employment service as defined by Section 93.001, Labor Code, [a
8-19 temporary help service] for an employer to supplement the
8-20 employer's existing work force on a temporary basis, when the
8-21 service is normally performed by the employer's own employees, the
8-22 employer provides all supplies and equipment necessary, and the
8-23 help is under the direct or general supervision of the employer to
8-24 whom the help is furnished; or
8-25 (3) a service performed by assigned employees of a
8-26 staff leasing company, either licensed under Chapter 91, Labor
8-27 Code, or exempt from the licensing requirements of that chapter,
9-1 for a client company under a written contract that provides for
9-2 shared employment responsibilities between the staff leasing
9-3 company and the client company for the assigned employees, most of
9-4 whom must have been previously employed by the client company. The
9-5 comptroller shall prescribe by rule the minimum percentage of
9-6 assigned employees that must have been previously employed by the
9-7 client company, the minimum time period the assigned employees must
9-8 have been employed by the client company prior to the commencement
9-9 of its contract, and such other criteria as the comptroller may
9-10 deem necessary to properly implement this section.
9-11 SECTION 15. Subsection (a), Section 151.155, Tax Code, is
9-12 amended to read as follows:
9-13 (a) Except as provided by Section 151.3181 for property used
9-14 in manufacturing, if [If] a purchaser certifies in writing to a
9-15 seller that a taxable item sold, leased, or rented to the purchaser
9-16 will be used in a manner or for a purpose that qualifies the sale
9-17 of the item for an exemption from the taxes imposed by this
9-18 chapter, and if the purchaser then uses the item in some other
9-19 manner or for some other purpose, the purchaser is liable for the
9-20 payment of the sales tax on the value of the taxable item for any
9-21 period during which the item is used in the divergent manner or for
9-22 the divergent purpose.
9-23 SECTION 16. Subsection (b), Section 151.257, Tax Code, is
9-24 amended to read as follows:
9-25 (b) If the security filed by the person is a surety bond,
9-26 the comptroller shall send a copy of the determination to each
9-27 surety on the bond and shall demand payment from both the person
10-1 filing the bond and each surety. A surety's obligation under the
10-2 bond is not affected by whether the surety has a record of the
10-3 receipt of a copy of the comptroller's determination notice or
10-4 payment demand.
10-5 SECTION 17. Subchapter H, Chapter 151, Tax Code, is amended
10-6 by adding Section 151.3021 to read as follows:
10-7 Sec. 151.3021. PACKAGING SUPPLIES AND WRAPPING. (a) In
10-8 this section:
10-9 (1) "Laundry or dry cleaner" does not include
10-10 coin-operated or other self-service garment cleaning facilities.
10-11 (2) "Wrapping, packing, and packaging supplies" means
10-12 hangers, safety pins, pins, inventory tags, staples, boxes, paper
10-13 wrappers, and plastic bags.
10-14 (b) Internal and external wrapping, packing, and packaging
10-15 supplies are exempted from the taxes imposed by this chapter if
10-16 sold to a person who is a laundry or dry cleaner for use in
10-17 wrapping, packing, or packaging an item that has been pressed and
10-18 dry cleaned or laundered by the person operating as a laundry or
10-19 dry cleaner in the regular course of business.
10-20 SECTION 18. Subsection (a), Section 151.308, Tax Code, is
10-21 amended to read as follows:
10-22 (a) The following are exempted from the taxes imposed by
10-23 this chapter:
10-24 (1) oil as taxed by Chapter 202;
10-25 (2) sulphur as taxed by Chapter 203;
10-26 (3) motor fuels and special fuels as defined, taxed,
10-27 or exempted by Chapter 153;
11-1 (4) cement as taxed by Chapter 181;
11-2 (5) motor vehicles, trailers, and semitrailers as
11-3 defined, taxed, or exempted by Chapter 152 [or 157], other than a
11-4 mobile office as defined by Section 152.001(16);
11-5 (6) mixed beverages, ice, or nonalcoholic beverages
11-6 and the preparation or service of these items if the receipts are
11-7 taxable by Chapter 183 [202, Alcoholic Beverage Code];
11-8 (7) alcoholic beverages when sold to the holder of a
11-9 private club registration permit or to the agent or employee of the
11-10 holder of a private club registration permit if the holder or agent
11-11 or employee is acting as the agent of the members of the club and
11-12 if the beverages are to be served on the premises of the club;
11-13 (8) oil well service as taxed by Subchapter E, Chapter
11-14 191; and
11-15 (9) insurance premiums subject to gross premiums
11-16 taxes.
11-17 SECTION 19. Subsection (d), Section 151.310, Tax Code, is
11-18 amended to read as follows:
11-19 (d) If two or more organizations jointly hold a tax-free
11-20 sale or auction, each [neither] organization may hold one
11-21 additional [another] tax-free sale or auction during the calendar
11-22 year in which the joint sale or auction is held. The employment of
11-23 and payment of a reasonable fee to an auctioneer to conduct a
11-24 tax-free auction does not disqualify an otherwise qualified
11-25 organization from receiving the exemption provided by Subsection
11-26 (c) [of this section].
11-27 SECTION 20. Section 151.313, Tax Code, as amended by
12-1 Chapters 394 and 683, Acts of the 76th Legislature, Regular
12-2 Session, 1999, is reenacted and amended to read as follows:
12-3 Sec. 151.313. HEALTH CARE SUPPLIES. (a) The following
12-4 items are exempted from the taxes imposed by this chapter:
12-5 (1) a drug or medicine, other than insulin, if
12-6 prescribed or dispensed for a human or animal by a licensed
12-7 practitioner of the healing arts;
12-8 (2) insulin;
12-9 (3) subject to Subsection (c), a drug or medicine,
12-10 without regard to whether it is prescribed or dispensed by a
12-11 licensed practitioner of the healing arts[, that is labeled with a
12-12 national drug code issued by the federal Food and Drug
12-13 Administration];
12-14 (4) a hypodermic syringe or needle;
12-15 (5) a brace; hearing aid or audio loop; orthopedic,
12-16 dental, or prosthetic device; ileostomy, colostomy, or ileal
12-17 bladder appliance; or supplies or replacement parts for the listed
12-18 items;
12-19 (6) a therapeutic appliance, device, and any related
12-20 supplies specifically designed for those products, if dispensed or
12-21 prescribed by a licensed practitioner of the healing arts, when
12-22 those items are purchased and used by an individual for whom the
12-23 items listed in this subdivision were dispensed or prescribed;
12-24 (7) corrective lens and necessary and related
12-25 supplies, if dispensed or prescribed by an ophthalmologist or
12-26 optometrist;
12-27 (8) specialized printing or signalling equipment used
13-1 by the deaf for the purpose of enabling the deaf to communicate
13-2 through the use of an ordinary telephone and all materials, paper,
13-3 and printing ribbons used in that equipment;
13-4 (9) a braille wristwatch, braille writer, braille
13-5 paper and braille electronic equipment that connects to computer
13-6 equipment, and the necessary adaptive devices and adaptive computer
13-7 software;
13-8 (10) each of the following items if purchased for use
13-9 by the blind to enable them to function more independently: a
13-10 slate and stylus, print enlarger, light probe, magnifier, white
13-11 cane, talking clock, large print terminal, talking terminal, or
13-12 harness for guide dog;
13-13 (11) hospital beds;
13-14 (12) blood glucose monitoring test strips; [and]
13-15 (13) an adjustable eating utensil used to facilitate
13-16 independent eating if purchased for use by a person, including a
13-17 person who is elderly or physically disabled, has had a stroke, or
13-18 is a burn victim, who does not have full use or control of the
13-19 person's hands or arms; and
13-20 (14) subject to Subsection (d), a dietary supplement.
13-21 (b) Each of the following items is exempted from the tax
13-22 imposed by this chapter if the item is used by a person who is deaf
13-23 to enable the person to function more independently:
13-24 (1) a light signal and device to adapt items such as
13-25 telecommunication devices for the deaf (TDDs), telephones,
13-26 doorbells, and smoke alarms; and
13-27 (2) adaptive devices or adaptive software for
14-1 computers used by persons who are deaf.
14-2 (c) A product is a drug or medicine for purposes of this
14-3 section if:
14-4 (1) the product:
14-5 (A) is intended for use in the diagnosis, cure,
14-6 mitigation, treatment, or prevention of disease, illness, injury,
14-7 or pain;
14-8 (B) is applied to the human body or is a product
14-9 that a human ingests or inhales;
14-10 (C) is not an appliance or device; and
14-11 (D) is not food; or
14-12 (2) the product is labeled or required to be labeled
14-13 with a "Drug Facts" panel in accordance with regulations of the
14-14 federal Food and Drug Administration.
14-15 (d) A product is a dietary supplement for purposes of this
14-16 section if:
14-17 (1) the product:
14-18 (A) contains one or more vitamins, minerals,
14-19 herbs or botanicals, amino acids, or substances that supplement the
14-20 daily dietary intake;
14-21 (B) is not represented as food or the sole item
14-22 of a meal or the diet; and
14-23 (C) is labeled "dietary supplement" or
14-24 "supplement"; or
14-25 (2) the product is labeled or required to be labeled
14-26 with a "Supplement Facts" panel in accordance with regulations of
14-27 the federal Food and Drug Administration.
15-1 SECTION 21. Subsection (a), Section 151.317, Tax Code, is
15-2 amended to read as follows:
15-3 (a) Subject to Subsection (d), gas and electricity are
15-4 exempted from the taxes imposed by this chapter when sold for:
15-5 (1) residential use;
15-6 (2) use in powering equipment exempt under Section
15-7 151.318 or 151.3185 by a person processing tangible personal
15-8 property for sale as tangible personal property, other than
15-9 preparation or storage of food for immediate consumption;
15-10 (3) use in lighting, cooling, and heating in the
15-11 manufacturing area during the actual manufacturing or processing of
15-12 tangible personal property for sale as tangible personal property,
15-13 other than preparation or storage of food for immediate
15-14 consumption;
15-15 (4) use directly in exploring for, producing, or
15-16 transporting, a material extracted from the earth;
15-17 (5) use in agriculture, including dairy or poultry
15-18 operations and pumping for farm or ranch irrigation;
15-19 (6) use directly in electrical processes, such as
15-20 electroplating, electrolysis, and cathodic protection;
15-21 (7) use directly in the off-wing processing, overhaul,
15-22 or repair of a jet turbine engine or its parts for a certificated
15-23 or licensed carrier of persons or property;
15-24 (8) use directly in providing, under contracts with or
15-25 on behalf of the United States government or foreign governments,
15-26 defense or national security-related electronics, classified
15-27 intelligence data processing and handling systems, or
16-1 defense-related platform modifications or upgrades; [or]
16-2 (9) a direct or indirect use, consumption, or loss of
16-3 electricity by an electric utility engaged in the purchase of
16-4 electricity for resale; or
16-5 (10) use in timber operations, including pumping for
16-6 irrigation of timberland.
16-7 SECTION 22. Subsections (a) and (t), Section 151.318, Tax
16-8 Code, are amended to read as follows:
16-9 (a) The following items are exempted from the taxes imposed
16-10 by this chapter if sold, leased, or rented to, or stored, used, or
16-11 consumed by a manufacturer:
16-12 (1) tangible personal property that will become an
16-13 ingredient or component part of tangible personal property
16-14 manufactured, processed, or fabricated for ultimate sale;
16-15 (2) tangible personal property directly used or
16-16 consumed in or during the actual manufacturing, processing, or
16-17 fabrication of tangible personal property for ultimate sale if the
16-18 use or consumption of the property is necessary or essential to the
16-19 manufacturing, processing, or fabrication operation and directly
16-20 makes or causes a chemical or physical change to:
16-21 (A) the product being manufactured, processed,
16-22 or fabricated for ultimate sale; or
16-23 (B) any intermediate or preliminary product that
16-24 will become an ingredient or component part of the product being
16-25 manufactured, processed, or fabricated for ultimate sale;
16-26 (3) services performed directly on the product being
16-27 manufactured prior to its distribution for sale and for the purpose
17-1 of making the product more marketable;
17-2 (4) actuators, steam production equipment and its
17-3 fuel, in-process flow through tanks, cooling towers, generators,
17-4 heat exchangers, transformers and the switches, breakers, capacitor
17-5 banks, regulators, relays, reclosers, fuses, interruptors,
17-6 reactors, arrestors, resistors, insulators, instrument
17-7 transformers, and telemetry units that are related to the
17-8 transformers, electronic control room equipment, computerized
17-9 control units, pumps, compressors, and hydraulic units, that are
17-10 used to power, supply, support, or control equipment that qualifies
17-11 for exemption under Subdivision (2) or (5) or to generate
17-12 electricity, chilled water, or steam for ultimate sale;
17-13 transformers located at an electric generating facility that
17-14 increase the voltage of electricity generated for ultimate sale,
17-15 the electrical cable that carries the electricity from the electric
17-16 generating equipment to the step-up transformers, and the switches,
17-17 breakers, capacitor banks, regulators, relays, reclosers, fuses,
17-18 interruptors, reactors, arrestors, resistors, insulators,
17-19 instrument transformers, and telemetry units that are related to
17-20 the step-up transformers; and transformers that decrease the
17-21 voltage of electricity generated for ultimate sale and the
17-22 switches, breakers, capacitor banks, regulators, relays, reclosers,
17-23 fuses, interruptors, reactors, arrestors, resistors, insulators,
17-24 instrument transformers, and telemetry units that are related to
17-25 the step-down transformers;
17-26 (5) tangible personal property used or consumed in the
17-27 actual manufacturing, processing, or fabrication of tangible
18-1 personal property for ultimate sale if the use or consumption of
18-2 the property is necessary and essential to a pollution control
18-3 process;
18-4 (6) lubricants, chemicals, chemical compounds, gases,
18-5 or liquids that are used or consumed during the actual
18-6 manufacturing, processing, or fabrication of tangible personal
18-7 property for ultimate sale if their use or consumption is necessary
18-8 and essential to prevent the decline, failure, lapse, or
18-9 deterioration of equipment exempted by this section;
18-10 (7) gases used on the premises of a manufacturing
18-11 plant to prevent contamination of raw material or product, or to
18-12 prevent a fire, explosion, or other hazardous or environmentally
18-13 damaging situation at any stage in the manufacturing process or in
18-14 loading or storage of the product or raw material on premises;
18-15 (8) tangible personal property used or consumed during
18-16 the actual manufacturing, processing, or fabrication of tangible
18-17 personal property for ultimate sale if the use or consumption of
18-18 the property is necessary and essential to a quality control
18-19 process that tests tangible personal property that is being
18-20 manufactured, processed, or fabricated for ultimate sale;
18-21 (9) safety apparel or work clothing that is used
18-22 during the actual manufacturing, processing, or fabrication of
18-23 tangible personal property for ultimate sale if:
18-24 (A) the manufacturing process would not be
18-25 possible without the use of the apparel or clothing; and
18-26 (B) the apparel or clothing is not resold to the
18-27 employee;
19-1 (10) tangible personal property used or consumed in
19-2 the actual manufacturing, processing, or fabrication of tangible
19-3 personal property for ultimate sale if the use or consumption of
19-4 the property is necessary and essential to comply with federal,
19-5 state, or local laws or rules that establish requirements related
19-6 to public health; and
19-7 (11) tangible personal property specifically installed
19-8 to:
19-9 (A) reduce water use and wastewater flow volumes
19-10 from the manufacturing, processing, fabrication, or repair
19-11 operation;
19-12 (B) reuse and recycle wastewater streams
19-13 generated within the manufacturing, processing, fabrication, or
19-14 repair operation; or
19-15 (C) treat wastewater from another industrial or
19-16 municipal source for the purpose of replacing existing freshwater
19-17 sources in the manufacturing, processing, fabrication, or repair
19-18 operation.
19-19 (t) In addition to the other items exempted under this
19-20 section, pre-press machinery, equipment, and supplies, including
19-21 computers, cameras, photographic props, film, film developing
19-22 chemicals, veloxes, plate-making machinery, plate metal, litho
19-23 negatives, color separation negatives, proofs of color negatives,
19-24 production art work, and typesetting or composition proofs, that
19-25 are necessary and essential to and used in connection with the
19-26 printing process are exempted from the tax imposed by this chapter
19-27 if they are purchased by a person engaged in:
20-1 (1) printing or imprinting tangible personal property
20-2 for sale; or
20-3 (2) producing a publication for the dissemination of
20-4 news of a general character and of a general interest that is
20-5 printed on newsprint and distributed to the general public free of
20-6 charge at a daily, weekly, or other short interval.
20-7 SECTION 23. Subchapter H, Chapter 151, Tax Code, is amended
20-8 by adding Section 151.3181 to read as follows:
20-9 Sec. 151.3181. DIVERGENT USE OF PROPERTY USED IN
20-10 MANUFACTURING. (a) In this section:
20-11 (1) "Divergent use" means the use of property in a
20-12 manner or for a purpose other than the manner or purpose that
20-13 qualified the sale, lease, rental, use, or other consumption of the
20-14 property for exemption under Section 151.318.
20-15 (2) "Property" means tangible personal property
20-16 regardless of whether the tangible personal property is permanently
20-17 affixed to or incorporated into realty after its purchase.
20-18 (b) Divergent use of property exempted under Section 151.318
20-19 will not result in sales and use tax being due on the property if
20-20 the divergent use occurs after the fourth anniversary of the date
20-21 the property is purchased.
20-22 (c) Except as provided by Subsection (d), divergent use of
20-23 property exempted under Section 151.318 that occurs during any
20-24 month before the fourth anniversary of the date the property is
20-25 purchased results in sales and use tax being due for that month.
20-26 The amount of the sales and use tax due for a month is equal to
20-27 1/48 of the purchase price of the property multiplied by the
21-1 percentage of divergent use during that month multiplied by the
21-2 sales and use tax rate applicable at the time of purchase.
21-3 (d) Divergent use of property exempted under Section 151.318
21-4 that occurs during a month before the fourth anniversary of the
21-5 date the property is purchased does not result in sales and use tax
21-6 being due for that month if the percentage of divergent use during
21-7 that month does not exceed five percent of the total use of the
21-8 property that month.
21-9 (e) The amount of divergent use during a month is:
21-10 (1) the total time the property operates for a
21-11 divergent use during a month, measured in hours; or
21-12 (2) the total output of the property during divergent
21-13 use during a month, measured in a manner applicable to that
21-14 property.
21-15 (f) The total use of property is:
21-16 (1) the total time the property operates during a
21-17 month, measured in hours; or
21-18 (2) the total output of the property during a month,
21-19 measured in a manner applicable to that property.
21-20 (g) The percentage of divergent use for a month is
21-21 determined by:
21-22 (1) dividing the amount of divergent use determined
21-23 under Subsection (e)(1) by the amount of total use of the property
21-24 determined under Subsection (f)(1); or
21-25 (2) dividing the amount of divergent use determined
21-26 under Subsection (e)(2) by the amount of total use of the property
21-27 determined under Subsection (f)(2).
22-1 SECTION 24. Section 151.3185, Tax Code, is amended by adding
22-2 Subsections (e) and (f) to read as follows:
22-3 (e) The sale of a motion picture, video, or audio master by
22-4 the producer of the master is exempt from the taxes imposed by this
22-5 chapter.
22-6 (f) Tangible personal property that is sold to an entity to
22-7 which 47 C.F.R. Section 73.624(b) applies is exempt from the taxes
22-8 imposed by this chapter if the property is necessary for the entity
22-9 to comply with 47 C.F.R. Section 73.682(d).
22-10 SECTION 25. Subsection (b), Section 151.319, Tax Code, is
22-11 amended to read as follows:
22-12 (b) A transaction involving a sale of a newspaper that has
22-13 been produced, fabricated, or printed to the special order of a
22-14 customer is exempted from the taxes imposed by this chapter if:
22-15 (1) the customer is responsible for gathering
22-16 substantially all of the information contained in the newspaper and
22-17 for formulating the design, layout, and format of the newspaper;
22-18 and
22-19 (2) the customer would be entitled to the exemption
22-20 provided by Section 151.318(t) [Subsection (d) of this section] if
22-21 the customer had a printing facility capable of processing and
22-22 printing the newspaper and printed and processed the newspaper.
22-23 SECTION 26. Section 152.002, Tax Code, is amended by adding
22-24 Subsection (e) to read as follows:
22-25 (e) A person who is a motor vehicle owner, is in the
22-26 business of renting motor vehicles, and holds a permit may deduct
22-27 the fair market value of a replaced motor vehicle that is titled to
23-1 another person if:
23-2 (1) either person:
23-3 (A) holds a beneficial ownership interest in the
23-4 other person of at least 80 percent; or
23-5 (B) acquires all of its vehicles exclusively
23-6 from franchised dealers whose franchisor shares common ownership
23-7 with the other person; and
23-8 (2) the replaced motor vehicle is offered for sale.
23-9 SECTION 27. Section 152.041, Tax Code, is amended by
23-10 amending Subsections (c) and (d) and adding Subsection (f) to read
23-11 as follows:
23-12 (c) Except as provided by Subsection (f) and Section
23-13 152.047, the tax imposed by Section 152.021 [of this code] is due
23-14 on the 20th working day after the date [day that] the motor vehicle
23-15 is delivered to the purchaser.
23-16 (d) Except as provided by Subsection (f), the [The] tax
23-17 imposed by Section 152.022 [of this code] is due on the 20th
23-18 working day after the date [day that] the motor vehicle is brought
23-19 into this state.
23-20 (f) The tax imposed by Section 152.021 or 152.022 on a motor
23-21 vehicle designed for commercial use is due on the 20th working day
23-22 after the date the motor vehicle is equipped with a body or other
23-23 equipment that enables the motor vehicle to be eligible to be
23-24 registered under the Transportation Code.
23-25 SECTION 28. Subsection (a), Section 152.047, Tax Code, is
23-26 amended to read as follows:
23-27 (a) Except as inconsistent with this chapter and rules
24-1 adopted under this chapter, the seller of a motor vehicle shall
24-2 report and pay the tax imposed on a seller-financed sale to the
24-3 comptroller on the seller's receipts from seller-financed sales in
24-4 the same manner as the sales tax is reported and paid by a retailer
24-5 under Sections 151.401, 151.402, 151.405, 151.406, 151.409,
24-6 151.423, 151.424, and 151.425 [Chapter 151].
24-7 SECTION 29. Section 152.091, Tax Code, is amended by adding
24-8 Subsection (d) to read as follows:
24-9 (d) For purposes of this section, a machine is used
24-10 "primarily for timber operations" if the machine is a
24-11 self-propelled motor vehicle that is specially adapted to perform a
24-12 specialized function in the production of timber, including land
24-13 preparation, planting, maintenance, and gathering of trees commonly
24-14 grown for commercial timber. The term does not include a
24-15 self-propelled motor vehicle used to transport timber or timber
24-16 products.
24-17 SECTION 30. Subdivision (25), Section 153.001, Tax Code, is
24-18 amended to read as follows:
24-19 (25) "Supplier" means a person who:
24-20 (A) refines, distills, manufactures, produces,
24-21 or blends for sale or distribution diesel fuel in this state;
24-22 (B) imports or exports diesel fuel other than in
24-23 the fuel supply tanks of motor vehicles;
24-24 (C) sells or delivers diesel fuel in bulk
24-25 quantities to dealers, dyed diesel fuel bonded users, agricultural
24-26 bonded users, bulk users, aviation fuel dealers, or other
24-27 suppliers; or
25-1 (D) is engaged in the business of selling or
25-2 delivering diesel fuel in bulk quantities to consumers for
25-3 nonhighway uses.
25-4 SECTION 31. Subsection (i), Section 153.018, Tax Code, is
25-5 amended to read as follows:
25-6 (i) Each terminal or bulk plant shall post a notice in a
25-7 conspicuous location proximate to the point of receipt of shipping
25-8 papers that describes the duties of importers and exporters under
25-9 this section. The comptroller may prescribe the language, type,
25-10 style, and format of the notice.
25-11 SECTION 32. Subsection (c), Section 153.115, Tax Code, is
25-12 amended to read as follows:
25-13 (c) A permitted interstate trucker is entitled to deduct
25-14 one-half of one percent of the taxable gallons of gasoline on
25-15 timely payment of the taxes to the state for the expense of
25-16 recordkeeping, reporting, and remitting the tax.
25-17 SECTION 33. Subsection (a), Section 153.117, Tax Code, is
25-18 amended to read as follows:
25-19 (a) A distributor shall keep:
25-20 (1) a record showing the number of gallons of:
25-21 (A) all gasoline inventories on hand at the
25-22 first of each month;
25-23 (B) all gasoline refined, compounded, or
25-24 blended;
25-25 (C) all gasoline purchased or received, showing
25-26 the name of the seller and date of each purchase or receipt;
25-27 (D) all gasoline sold, distributed, or used,
26-1 showing the name of the purchaser and the date of the sale or use;
26-2 and
26-3 (E) all gasoline lost by fire, theft, or
26-4 accident; and
26-5 (2) an itemized statement showing by load the number
26-6 of gallons of all gasoline:
26-7 (A) received during the preceding calendar month
26-8 for export and the location of the loading;
26-9 (B) exported from this state by destination
26-10 state or country; and
26-11 (C) imported during the preceding calendar month
26-12 by [destination] state or country of origin.
26-13 SECTION 34. Subsection (a), Section 153.119, Tax Code, is
26-14 amended to read as follows:
26-15 (a) A person who exports, sells to the federal government,
26-16 to a public school district in this state, or to a commercial
26-17 transportation company for exclusive use in providing public school
26-18 transportation services to a school district under Section 34.008,
26-19 Education Code, without having added the amount of the tax imposed
26-20 by this chapter to his selling price, loses by fire, theft, or
26-21 accident, or uses gasoline for the purpose of operating or
26-22 propelling a motorboat, tractor used for agricultural purposes, or
26-23 stationary engine, or for another purpose except in a vehicle
26-24 operated or intended to be operated on the public highways of this
26-25 state, and who has paid the tax imposed on gasoline by this chapter
26-26 either directly or indirectly is, when the person has complied with
26-27 the invoice and filing provisions of this section and the rules of
27-1 the comptroller, entitled to reimbursement of the tax paid by him,
27-2 less [a filing fee and] any amount allowed distributors under
27-3 Section 153.105(e) [of this code]. A public school district that
27-4 has paid the tax imposed under this chapter on gasoline used by the
27-5 district or a commercial transportation company that has paid the
27-6 tax imposed under this chapter on gasoline used by the company
27-7 exclusively to provide public school transportation services to a
27-8 school district under Section 34.008, Education Code, is entitled
27-9 to reimbursement of the amount of the tax paid in the same manner
27-10 and subject to the same procedures as other exempted users.
27-11 SECTION 35. Section 153.122, Tax Code, is amended to read as
27-12 follows:
27-13 Sec. 153.122. GASOLINE TAX REFUND PAYMENT [AND FILING FEE].
27-14 [(a)] After examination of the refund claim, the comptroller
27-15 before issuing a refund warrant shall deduct from the amount of the
27-16 refund[:]
27-17 [(1)] the two percent deducted originally by the
27-18 distributor on the first sale or distribution of the gasoline[; and]
27-19 [(2) $1.50 as a filing fee.]
27-20 [(b) The filing fees shall be set aside for the use and
27-21 benefit of the comptroller in the administration and enforcement of
27-22 this section. All filing fees shall be paid into the state
27-23 treasury and shall be paid out on vouchers and warrants in the
27-24 manner prescribed by law].
27-25 SECTION 36. (a) Section 153.203, Tax Code, is amended to
27-26 read as follows:
27-27 Sec. 153.203. EXCEPTIONS. The tax imposed by this
28-1 subchapter does not apply to:
28-2 (1) diesel fuel delivered by a permitted supplier to a
28-3 common or contract carrier, oceangoing vessel (including ship,
28-4 tanker, or boat), or barge for export from this state, if the
28-5 diesel fuel is moved forthwith outside this state;
28-6 (2) diesel fuel sold by a permitted supplier to the
28-7 federal government for its exclusive use;
28-8 (3) diesel fuel sold or delivered by a permitted
28-9 supplier to another permitted supplier or to the bulk storage
28-10 facility of an agricultural bonded user, or dyed diesel fuel sold
28-11 or delivered by a permitted supplier to the bulk storage facility
28-12 of a dyed diesel fuel bonded user, to the bulk storage facility of
28-13 a diesel tax prepaid user, or to a purchaser who provides a signed
28-14 statement as provided by Section 153.205 of this code, but not
28-15 including a delivery of tax-free diesel fuel into the fuel supply
28-16 tanks of a motor vehicle, except for a motor vehicle owned by the
28-17 federal government;
28-18 (4) diesel fuel sold or delivered by a permitted
28-19 supplier into the storage facility of a permitted aviation fuel
28-20 dealer, from which diesel fuel will be sold or delivered solely
28-21 into the fuel supply tanks of aircraft or aircraft servicing
28-22 equipment;
28-23 (5) diesel fuel sold or delivered by a permitted
28-24 supplier into fuel supply tanks of railway engines, motorboats, or
28-25 refrigeration units or other stationary equipment powered by a
28-26 separate motor from a separate fuel supply tank;
28-27 (6) kerosene when delivered by a permitted supplier
29-1 into a storage facility at a retail business from which all
29-2 deliveries are exclusively for heating, cooking, lighting, or
29-3 similar nonhighway use;
29-4 (7) diesel fuel sold or delivered by one aviation fuel
29-5 dealer to another aviation fuel dealer who will deliver the diesel
29-6 fuel exclusively into the supply tanks of aircraft or aircraft
29-7 servicing equipment;
29-8 (8) diesel fuel sold by a permitted supplier to a
29-9 public school district in this state for its exclusive use;
29-10 (9) diesel fuel sold by a permitted supplier to a
29-11 commercial transportation company that provides public school
29-12 transportation services to a school district under Section 34.008,
29-13 Education Code, and used by the company exclusively to provide
29-14 those services; [or]
29-15 (10) diesel fuel sold by a permitted supplier to a
29-16 person, other than a political subdivision, who owns, controls,
29-17 operates, or manages a commercial motor vehicle as defined by
29-18 Section 548.001, Transportation Code, if the fuel:
29-19 (A) is delivered exclusively into the fuel
29-20 supply tank of the commercial motor vehicle; and
29-21 (B) is used exclusively to transport passengers
29-22 for compensation or hire between points in this state on a fixed
29-23 route or schedule; or
29-24 (11) the volume of water that is blended together with
29-25 taxable diesel fuel when the finished product sold or used is
29-26 clearly identified on the retail pump, storage tank, and sales
29-27 invoice as a combination of diesel fuel and water.
30-1 (b) The change in law made by this section of this Act does
30-2 not affect taxes imposed before the effective date of this section,
30-3 and the law in effect before the effective date of this section is
30-4 continued in effect for purposes of the liability for and
30-5 collection of those taxes.
30-6 SECTION 37. Section 153.205, Tax Code, is amended to read as
30-7 follows:
30-8 Sec. 153.205. STATEMENT FOR PURCHASE OF DIESEL FUEL TAX
30-9 FREE. (a) The first sale or use of diesel fuel in this state is
30-10 taxable, except that sales of dyed diesel fuel, or of undyed diesel
30-11 fuel if the fuel will be used for an agricultural nonhighway
30-12 purpose, may be made without collecting the tax if the purchaser
30-13 furnishes to a permitted supplier a signed statement, including an
30-14 end user number or agricultural [user] exemption number issued by
30-15 the comptroller. A person who wants to use a signed statement to
30-16 purchase dyed diesel fuel must apply to the comptroller for an end
30-17 user number to be used in conjunction with a signed statement. A
30-18 person who wants to use a signed statement to purchase dyed or
30-19 undyed diesel fuel for an agricultural nonhighway purpose must
30-20 apply to the comptroller for an agricultural exemption number to be
30-21 used in conjunction with a signed statement. A supplier may not
30-22 make a tax-free sale of any diesel fuel to a purchaser using a
30-23 signed statement unless the purchaser has an end user number or
30-24 agricultural exemption number issued by the comptroller under this
30-25 section [that stipulates that:]
30-26 [(1) the purchaser does not operate any diesel-powered
30-27 motor vehicles on the public highway;]
31-1 [(2) all of the diesel fuel will be consumed by the
31-2 purchaser and no diesel fuel purchased on a signed statement will
31-3 be resold; and]
31-4 [(3) none of the diesel fuel purchased in this state
31-5 will be delivered or permitted by the purchaser to be delivered
31-6 into fuel supply tanks of motor vehicles].
31-7 (b) A sale of dyed diesel fuel may be made without
31-8 collecting the tax if the purchaser furnishes to a permitted
31-9 supplier a signed statement, including an end user number issued by
31-10 the comptroller, that stipulates that:
31-11 (1) none of the diesel fuel purchased on the signed
31-12 statement is of a type that may legally be used on the public
31-13 highway;
31-14 (2) all of the dyed diesel fuel purchased on the
31-15 signed statement will be consumed by the purchaser and will not be
31-16 resold; and
31-17 (3) none of the dyed diesel fuel purchased on the
31-18 signed statement will be delivered or permitted to be delivered
31-19 into the fuel supply tank of a motor vehicle operated on the public
31-20 highways of this state.
31-21 (c) A sale of dyed or undyed diesel fuel for an agricultural
31-22 nonhighway use may be made without collecting the tax if the
31-23 purchaser furnishes to a permitted supplier a signed statement,
31-24 including an agricultural exemption number issued by the
31-25 comptroller, that stipulates that:
31-26 (1) all of the dyed and undyed diesel fuel purchased
31-27 on the signed statement will be used exclusively in agricultural
32-1 nonhighway equipment;
32-2 (2) all of the dyed and undyed diesel fuel purchased
32-3 on the signed statement will be consumed by the purchaser and will
32-4 not be resold; and
32-5 (3) none of the dyed or undyed diesel fuel purchased
32-6 on the signed statement will be delivered or permitted to be
32-7 delivered into the fuel supply tank of a motor vehicle operated on
32-8 the public highways of this state.
32-9 (d) A person may not make a tax-free purchase of any diesel
32-10 fuel under this section using a signed statement:
32-11 (1) for the purchase of more than 3,000 gallons of
32-12 dyed or undyed diesel fuel in a single transaction or delivery; or
32-13 (2) in a calendar month in which the person has
32-14 previously purchased more than 10,000 gallons of dyed or undyed
32-15 diesel fuel from all sources.
32-16 (e) Any gallons purchased in excess of the limitations
32-17 prescribed by Subsection (d) constitute a taxable purchase. The
32-18 purchaser paying the tax on dyed or undyed diesel fuel in excess of
32-19 the limitations prescribed by Subsection (d) may claim a refund of
32-20 the tax paid on any dyed or undyed diesel fuel used for nonhighway
32-21 purposes under Section 153.222.
32-22 (f) A supplier may not make a tax-free sale of any diesel
32-23 fuel under this section to a purchaser using a signed statement:
32-24 (1) for the sale of more than 3,000 gallons of dyed or
32-25 undyed diesel fuel in a single transaction or delivery; or
32-26 (2) in a calendar month in which the supplier has
32-27 previously sold more than 10,000 gallons of dyed or undyed diesel
33-1 fuel to the purchaser.
33-2 (g) Any gallons sold in excess of the limitations prescribed
33-3 by Subsection (f) constitute a taxable sale. The purchaser paying
33-4 the tax on dyed or undyed diesel fuel in excess of the limitations
33-5 prescribed by Subsection (f) may claim a refund of the tax paid on
33-6 any dyed or undyed diesel fuel used for nonhighway purposes under
33-7 Section 153.222.
33-8 (h) [(c)] The signed statement and end user number or
33-9 agricultural [user] exemption number from the purchaser as provided
33-10 by this section relieves the permitted supplier from the burden of
33-11 proof that the sale of dyed diesel fuel or of undyed diesel fuel
33-12 for an agricultural nonhighway purpose was not taxable to the
33-13 purchaser and remains in effect unless:
33-14 (1) the statement is revoked in writing by the
33-15 purchaser or supplier; or
33-16 (2) the comptroller notifies the supplier in writing
33-17 that the purchaser may no longer make tax-free purchases[; or]
33-18 [(3) the supplier is put on notice by making taxable
33-19 sales of diesel fuel to a purchaser who has previously submitted a
33-20 signed statement to this supplier].
33-21 (i) [(d) A taxable sale to a person who has previously
33-22 submitted a signed statement creates a rebuttable presumption that
33-23 the supplier had reasonable notice that all subsequent sales should
33-24 have been taxable.]
33-25 [(e)] A taxable use of any part of the dyed or undyed diesel
33-26 fuel purchased under a signed statement shall, in addition to any
33-27 criminal penalty, forfeit the right of the person to purchase dyed
34-1 or undyed diesel fuel tax free for a period of one year from the
34-2 date of the offense, and any tax, interest, and penalty found to be
34-3 due through false or erroneous execution or continuance of a
34-4 promissory statement by the purchaser, if assessed to the supplier,
34-5 is a debt of the purchaser to the supplier until paid, and is
34-6 recoverable at law in the same manner as the purchase price of the
34-7 fuel. The person may, however, claim a refund of the tax paid on
34-8 any dyed or undyed diesel fuel used for nonhighway purposes under
34-9 Section 153.222.
34-10 [(f) The statement must be signed by the purchaser or his
34-11 representative.]
34-12 [(g) The comptroller's regulations may allow separate
34-13 operating divisions of corporations to give separate signed
34-14 statements as if they were different legal entities.]
34-15 [(h) The comptroller may promulgate necessary forms and
34-16 rules to administer and enforce this section.]
34-17 [(i) A permitted supplier may not make a tax-free sale of
34-18 dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
34-19 to a purchaser using a signed statement:]
34-20 [(1) for the sale of more than 3,000 gallons of dyed
34-21 or undyed diesel fuel in a single transaction; or]
34-22 [(2) in a calendar month in which the supplier has
34-23 previously sold more than 10,000 gallons of dyed or undyed diesel
34-24 fuel to the purchaser.]
34-25 [(j)(1) A sale of dyed diesel fuel, or undyed diesel fuel
34-26 for agricultural purposes, may be made without collecting tax from
34-27 a purchaser who operates one or more motor vehicles on the public
35-1 highway and who furnishes to a permitted supplier a signed
35-2 statement and end user number or agricultural user exemption number
35-3 only as provided in this subsection.]
35-4 [(2) The statement must stipulate that all the dyed or
35-5 undyed diesel fuel will be consumed by the purchaser for purposes
35-6 other than operating a motor vehicle on the public highway and that
35-7 no dyed or undyed diesel fuel purchased on a signed statement will
35-8 be resold or delivered into the fuel supply tanks of a motor
35-9 vehicle.]
35-10 [(3) Diesel fuel which may be sold without collection
35-11 of tax under this subsection must be of a type that may not be
35-12 legally used by the purchaser for the operation of a motor vehicle
35-13 on the public highway under state or federal law.]
35-14 [(4) Subsections (a), (c)(3), and (d) of this section
35-15 do not apply to sales of fuel under this subsection.]
35-16 [(k) A person who wants to use a signed statement to
35-17 purchase dyed diesel fuel must apply to the comptroller for an end
35-18 user number to be used in conjunction with a signed statement. A
35-19 person who wants to use a signed statement to purchase dyed or
35-20 undyed diesel fuel for agricultural purposes must apply to the
35-21 comptroller for an agricultural user exemption number to be used in
35-22 conjunction with a signed statement. A person may not make a
35-23 tax-free sale of any diesel fuel to a purchaser using a signed
35-24 statement unless the purchaser has an end user number or
35-25 agricultural user exemption number issued by the comptroller under
35-26 this subsection.]
35-27 SECTION 38. Subsections (c) and (i), Section 153.206, Tax
36-1 Code, are amended to read as follows:
36-2 (c) A dyed diesel fuel bonded user, agricultural bonded
36-3 user, or other user, except a diesel tax prepaid user, shall report
36-4 and pay to the state the tax at the rate imposed on each gallon of
36-5 diesel fuel delivered by him into the fuel supply tanks of a motor
36-6 vehicle, unless the tax has been paid to a permitted supplier or a
36-7 dealer, or, as a diesel tax prepaid user, the tax has been prepaid
36-8 directly to the comptroller.
36-9 (i) A dyed diesel fuel bonded user, an agricultural bonded
36-10 user, or a permitted interstate trucker is entitled to deduct
36-11 one-half of one percent of the taxable gallons of diesel fuel on
36-12 timely payment of the taxes to this state for the expense of
36-13 recordkeeping, reporting, and remitting the tax.
36-14 SECTION 39. The heading to Section 153.217, Tax Code, is
36-15 amended to read as follows:
36-16 Sec. 153.217. LIST OF SUPPLIERS, DYED DIESEL FUEL BONDED
36-17 USERS, AGRICULTURAL BONDED USERS, AVIATION FUEL DEALERS, AND DIESEL
36-18 FUEL JOBBERS.
36-19 SECTION 40. Subsection (j), Section 153.219, Tax Code, is
36-20 amended to read as follows:
36-21 (j) A supplier shall keep:
36-22 (1) an itemized statement showing by load the number
36-23 of gallons of all diesel fuel received during the preceding
36-24 calendar month for export;
36-25 (2) an itemized statement showing by load the number
36-26 of gallons of all diesel fuel exported from this state by
36-27 destination state or country;
37-1 (3) an itemized statement showing by load the number
37-2 of gallons of all diesel fuel imported during the preceding
37-3 calendar month by [destination] state or country of origin;
37-4 (4) an itemized statement differentiating between dyed
37-5 and undyed diesel fuel and showing by purchaser, end user number,
37-6 or agricultural [user] exemption number the number of gallons of
37-7 dyed and undyed diesel fuel sold tax free to a purchaser using a
37-8 signed statement in accordance with Section 153.205; and
37-9 (5) an itemized statement showing by purchaser and
37-10 permit number the number of gallons of dyed and undyed diesel fuel
37-11 sold tax free to dyed diesel fuel bonded users and agricultural
37-12 bonded users.
37-13 SECTION 41. Subsections (a) and (c), Section 153.221, Tax
37-14 Code, are amended to read as follows:
37-15 (a) On or before the 25th day of each month, a supplier, a
37-16 dealer required to collect the tax under Section 153.206(b), or a
37-17 dyed diesel fuel bonded user, agricultural bonded user, or other
37-18 user required to pay the tax under Section 153.206(c) shall file a
37-19 report of diesel fuel transactions or of diesel fuel delivered by a
37-20 dyed diesel fuel bonded user, agricultural bonded user, or other
37-21 user into the fuel tank of a motor vehicle owned or operated by the
37-22 user and such supplements as the comptroller may require and remit
37-23 the amount of tax required to be collected or to be paid during the
37-24 preceding month. A report must be filed on a form or in a manner
37-25 provided by the comptroller and contain information required by the
37-26 comptroller, showing complete and detailed information of diesel
37-27 fuel transactions or use during the preceding month. A supplier
38-1 required to file a report under this section who has not sold,
38-2 used, or distributed any diesel fuel during the reporting period
38-3 shall file with the comptroller the report setting forth the facts
38-4 or information. The failure of a supplier, dealer, or dyed diesel
38-5 fuel bonded user, agricultural bonded user, or other user to obtain
38-6 forms or software from the comptroller is no excuse for the failure
38-7 to file a report. The report must be executed by the supplier,
38-8 dealer, or user, or his representative, and is subject to the
38-9 penalties provided in this chapter.
38-10 (c) No report is required to be filed by:
38-11 (1) an aviation fuel dealer;
38-12 (2) a trip permit user;
38-13 (3) a diesel tax prepaid user;
38-14 (4) a person issuing signed statements; or
38-15 (5) [a common or contract carrier; or]
38-16 [(6)] a diesel fuel jobber.
38-17 SECTION 42. Subsection (a), Section 153.222, Tax Code, is
38-18 amended to read as follows:
38-19 (a) A dealer or diesel fuel jobber who has paid tax on
38-20 diesel fuel that has been used or sold for use by the dealer or
38-21 diesel fuel jobber for any purpose other than propelling a motor
38-22 vehicle on the public highways of this state or that has been sold
38-23 to the United States or a public school district in this state for
38-24 the exclusive use of the purchaser, or to a commercial
38-25 transportation company for exclusive use in providing public school
38-26 transportation services to a school district under Section 34.008,
38-27 Education Code, without adding the amount of the tax to his selling
39-1 price, and a user who has paid tax on any diesel fuel that has been
39-2 used by him for a purpose other than propelling a motor vehicle on
39-3 the public highways, is a public school district and has paid the
39-4 tax on diesel fuel purchased for its exclusive use, is a commercial
39-5 transportation company and has paid the tax on diesel fuel used by
39-6 the company exclusively to provide public school transportation
39-7 services to a school district under Section 34.008, Education Code,
39-8 or is a person who has paid tax on diesel fuel used in a commercial
39-9 motor vehicle as provided by Section 153.203(10) may file a claim
39-10 for a refund of taxes paid, less the deduction allowed vendors [and
39-11 a filing fee].
39-12 SECTION 43. Section 153.225, Tax Code, is amended to read as
39-13 follows:
39-14 Sec. 153.225. DIESEL FUEL TAX REFUND PAYMENTS [AND FILING
39-15 FEE]. [(a)] After examination and approval of the refund claim,
39-16 the comptroller before issuing a refund warrant shall deduct from
39-17 the amount of the refund payment[:]
39-18 [(1)] the 2 percent deducted originally by the
39-19 supplier on the sale or delivery of the diesel fuel[; and]
39-20 [(2) $1.50 as a filing fee.]
39-21 [(b) The filing fees shall be set aside for the use and
39-22 benefit of the comptroller in the administration and enforcement of
39-23 the provisions of this chapter, and for payment of expenses in
39-24 furnishing the claim forms and other forms. All filing fees shall
39-25 be paid into the state treasury and shall be paid out on vouchers
39-26 and warrants in the manner prescribed by law].
39-27 SECTION 44. Subsections (c) and (d), Section 153.308, Tax
40-1 Code, are amended to read as follows:
40-2 (c) The tax on one percent of the taxable gallons of
40-3 liquefied gas sold in this state shall be allocated to the
40-4 permitted dealer making the sale for the expense of collecting,
40-5 accounting for, reporting, and timely remitting the taxes collected
40-6 and keeping the records. The allocation allowance shall be
40-7 deducted by the permitted dealers in the payment to the state.
40-8 (d) The tax of one-half of one percent of the taxable
40-9 gallons of liquefied gas used in this state by persons permitted as
40-10 interstate truckers shall be allocated to the interstate trucker
40-11 making the use of the liquefied gas for the expense of accounting
40-12 for, reporting, and timely remitting the taxes due.
40-13 SECTION 45. Subsection (c), Section 153.311, Tax Code, is
40-14 amended to read as follows:
40-15 (c) A permitted interstate trucker is entitled to a refund
40-16 of the amount of the Texas liquefied gas tax paid on each gallon of
40-17 liquefied gas subsequently used outside this state. On
40-18 verification by the comptroller that the interstate trucker's
40-19 report was timely filed with all information required, the
40-20 comptroller [he] shall issue a warrant to the interstate trucker
40-21 for the amount of the refund less the one percent deducted
40-22 originally by the permitted dealer making the sale [and a filing
40-23 fee of $1.50]. Failure to file an interstate trucker report by the
40-24 25th of the month following the end of a calendar quarter forfeits
40-25 the right to a refund.
40-26 SECTION 46. Subdivision (13), Section 154.001, Tax Code, is
40-27 amended to read as follows:
41-1 (13) "Permit holder" means a bonded agent,
41-2 distributor, wholesaler, manufacturer, importer, or retailer
41-3 required to obtain a permit under Section 154.101.
41-4 SECTION 47. Subsections (a), (b), and (h), Section 154.101,
41-5 Tax Code, are amended to read as follows:
41-6 (a) A person may not engage in business as a distributor,
41-7 wholesaler, bonded agent, manufacturer, importer, or retailer
41-8 unless the person has applied for and received the applicable
41-9 permit from the comptroller.
41-10 (b) Each distributor, wholesaler, bonded agent,
41-11 manufacturer, importer, or retailer shall obtain a permit for each
41-12 place of business owned or operated by the distributor, wholesaler,
41-13 bonded agent, manufacturer, importer, or retailer.
41-14 (h) Permits for engaging in business as a distributor,
41-15 wholesaler, bonded agent, manufacturer, importer, or retailer shall
41-16 be governed exclusively by the provisions of this code.
41-17 SECTION 48. Subsection (a), Section 154.102, Tax Code, is
41-18 amended to read as follows:
41-19 (a) The comptroller may issue a combination permit for
41-20 cigarettes and tobacco products to a person who is a distributor,
41-21 wholesaler, bonded agent, manufacturer, importer, or retailer as
41-22 defined by this chapter and Chapter 155 for both cigarettes and
41-23 tobacco products.
41-24 SECTION 49. Subsection (a), Section 154.110, Tax Code, is
41-25 amended to read as follows:
41-26 (a) The comptroller shall issue a permit to a distributor,
41-27 wholesaler, bonded agent, manufacturer, importer, or retailer if
42-1 the comptroller:
42-2 (1) has received an application and fee, if required;
42-3 (2) believes that the applicant has complied with
42-4 Section 154.101; and
42-5 (3) determines that issuing the permit will not
42-6 jeopardize the administration and enforcement of this chapter.
42-7 SECTION 50. Subsection (a), Section 154.501, Tax Code, is
42-8 amended to read as follows:
42-9 (a) A person violates this chapter if the person:
42-10 (1) is a distributor, wholesaler, manufacturer,
42-11 importer, bonded agent, manufacturer's representative, or retailer
42-12 and fails to keep records required by this chapter;
42-13 (2) engages in the business of a bonded agent,
42-14 distributor, wholesaler, manufacturer, importer, or retailer
42-15 without a valid permit;
42-16 (3) is a distributor, wholesaler, manufacturer,
42-17 importer, bonded agent, or retailer and fails to make a report or
42-18 makes a false or incomplete report or application required by this
42-19 chapter to the comptroller; or
42-20 (4) is a person affected by this chapter and fails or
42-21 refuses to abide by or violates a provision of this chapter or a
42-22 rule adopted by the comptroller under this chapter.
42-23 SECTION 51. Subdivision (11), Section 155.001, Tax Code, is
42-24 amended to read as follows:
42-25 (11) "Permit holder" means a bonded agent,
42-26 distributor, wholesaler, manufacturer, importer, or retailer
42-27 required to obtain a permit under Section 155.041.
43-1 SECTION 52. Subsections (a), (b), and (h), Section 155.041,
43-2 Tax Code, are amended to read as follows:
43-3 (a) A person may not engage in business as a distributor,
43-4 wholesaler, bonded agent, manufacturer, importer, or retailer
43-5 unless the person has applied for and received the applicable
43-6 permit from the comptroller.
43-7 (b) Each distributor, wholesaler, bonded agent,
43-8 manufacturer, importer, or retailer shall obtain a permit for each
43-9 place of business owned or operated by the distributor, wholesaler,
43-10 bonded agent, manufacturer, importer, or retailer.
43-11 (h) Permits for engaging in business as a distributor,
43-12 wholesaler, bonded agent, manufacturer, importer, or retailer shall
43-13 be governed exclusively by the provisions of this code.
43-14 SECTION 53. Subsection (a), Section 155.048, Tax Code, is
43-15 amended to read as follows:
43-16 (a) The comptroller shall issue a permit to a distributor,
43-17 wholesaler, bonded agent, manufacturer, importer, or retailer if
43-18 the comptroller:
43-19 (1) has received an application and fee, if required;
43-20 (2) does not reject the application and deny the
43-21 permit under Section 155.0481; and
43-22 (3) determines that issuing the permit will not
43-23 jeopardize the administration and enforcement of this chapter.
43-24 SECTION 54. Section 155.111, Tax Code, is amended by adding
43-25 Subsection (d) to read as follows:
43-26 (d) If more than 50 percent of all untaxed tobacco products
43-27 received by the distributor in this state are actually sold outside
44-1 of this state, the distributor shall include in the report only
44-2 tobacco products that are sold in this state.
44-3 SECTION 55. Subsection (a), Section 155.201, Tax Code, is
44-4 amended to read as follows:
44-5 (a) A person violates this chapter if the person:
44-6 (1) is a distributor, wholesaler, manufacturer,
44-7 importer, bonded agent, manufacturer's representative, or retailer
44-8 and fails to keep records required by this chapter;
44-9 (2) engages in the business of a bonded agent,
44-10 distributor, wholesaler, manufacturer, importer, or retailer
44-11 without a valid permit;
44-12 (3) is a distributor, wholesaler, manufacturer,
44-13 importer, bonded agent, or retailer and fails to make a report
44-14 required by this chapter to the comptroller or makes a false or
44-15 incomplete report or application required by this chapter to the
44-16 comptroller; or
44-17 (4) is a person affected by this chapter and fails or
44-18 refuses to abide by or violates a provision of this chapter or a
44-19 rule adopted by the comptroller under this chapter.
44-20 SECTION 56. Section 171.076, Tax Code, is amended to read as
44-21 follows:
44-22 Sec. 171.076. EXEMPTION--COOPERATIVE CREDIT ASSOCIATION. A
44-23 cooperative credit association incorporated under Chapter 55,
44-24 Agriculture Code, an organization organized under 12 U.S.C. Section
44-25 2071, or an agricultural credit association regulated by the Farm
44-26 Credit Administration is exempted from the franchise tax.
44-27 SECTION 57. Section 171.1032, Tax Code, is amended by
45-1 amending Subsection (a) and adding Subsection (c) to read as
45-2 follows:
45-3 (a) Except for the gross receipts of a corporation that are
45-4 subject to the provisions of Section 171.1061, in apportioning
45-5 taxable earned surplus, the gross receipts of a corporation from
45-6 its business done in this state is the sum of the corporation's
45-7 receipts from:
45-8 (1) each sale of tangible personal property if the
45-9 property is delivered or shipped to a buyer in this state
45-10 regardless of the FOB point or another condition of the sale, and
45-11 each sale of tangible personal property shipped from this state to
45-12 a purchaser in another state in which the seller is not subject to
45-13 any tax on, or measured by, net income, without regard to whether
45-14 the tax is imposed;
45-15 (2) each service performed in this state;
45-16 (3) each rental of property situated in this state;
45-17 (4) the use of a patent, copyright, trademark,
45-18 franchise, or license in this state;
45-19 (5) each sale of real property located in this state,
45-20 including royalties from oil, gas, or other mineral interests;
45-21 [and]
45-22 (6) each partnership or joint venture to the extent
45-23 provided by Subsection (c); and
45-24 (7) other business done in this state.
45-25 (c) A corporation shall include in its gross receipts
45-26 computed under Subsection (a) the corporation's share of the gross
45-27 receipts of each partnership and joint venture of which the
46-1 corporation is a part apportioned to this state as though the
46-2 corporation directly earned the receipts, including receipts from
46-3 business done with the corporation.
46-4 SECTION 58. Section 171.1051, Tax Code, is amended by
46-5 amending Subsection (a) and adding Subsection (d) to read as
46-6 follows:
46-7 (a) Except for the gross receipts of a corporation that are
46-8 subject to the provisions of Section 171.1061, in apportioning
46-9 taxable earned surplus, the gross receipts of a corporation from
46-10 its entire business is the sum of the corporation's receipts from:
46-11 (1) each sale of the corporation's tangible personal
46-12 property;
46-13 (2) each service, rental, or royalty; [and]
46-14 (3) each partnership and joint venture as provided by
46-15 Subsection (d); and
46-16 (4) other business.
46-17 (d) A corporation shall include in its gross receipts
46-18 computed under Subsection (a) the corporation's share of the gross
46-19 receipts of each partnership and joint venture of which the
46-20 corporation is a part.
46-21 SECTION 59. Section 171.106, Tax Code, is amended by adding
46-22 Subsection (h) to read as follows:
46-23 (h) A banking corporation shall exclude from the numerator
46-24 of the bank's apportionment factor interest earned on federal funds
46-25 and interest earned on securities sold under an agreement to
46-26 repurchase that are held in this state in a correspondent bank that
46-27 is domiciled in this state. In this subsection, "correspondent"
47-1 has the meaning assigned by 12 C.F.R. Section 206.2(c).
47-2 SECTION 60. Section 171.109, Tax Code, is amended by adding
47-3 Subsection (n) to read as follows:
47-4 (n) A corporation must use the equity method of accounting
47-5 when reporting an investment in a partnership or joint venture.
47-6 SECTION 61. Section 171.1121, Tax Code, is amended by adding
47-7 Subsection (e) to read as follows:
47-8 (e) A corporation's share of a partnership's gross receipts
47-9 that is included in the corporation's federal taxable income must
47-10 be used in computing the corporation's gross receipts under this
47-11 section. Unless otherwise provided by this chapter, a corporation
47-12 may not deduct costs incurred from the corporation's share of a
47-13 partnership's gross receipts. The gross receipts must be
47-14 apportioned as though the corporation directly earned them.
47-15 SECTION 62. Subsection (b), Section 171.260, Tax Code, is
47-16 amended to read as follows:
47-17 (b) The savings and loan commissioner shall appoint a
47-18 conservator under Subtitle B or C, Title 3, Finance Code, to pay
47-19 the franchise tax of a savings and loan association [corporation]
47-20 that is organized under the laws of this state and that the
47-21 commissioner certifies as being delinquent in the payment of the
47-22 association's [corporation's] franchise tax.
47-23 SECTION 63. Subsection (d), Section 171.501, Tax Code, is
47-24 amended to read as follows:
47-25 (d) The amount of a refund under this section is the lesser
47-26 of $5,000 or 25 percent of the amount of franchise tax due [taxes
47-27 paid] for any one privilege period before any other applicable
48-1 credits. For purposes of this subsection, the initial and second
48-2 periods are considered to be the same privilege period.
48-3 SECTION 64. Section 171.655, Tax Code, is amended to read as
48-4 follows:
48-5 Sec. 171.655. LIMITATION. The credit claimed for each
48-6 privilege period may not exceed 50 percent of the amount of [net]
48-7 franchise tax due for the privilege period before [after] any other
48-8 applicable tax credits.
48-9 SECTION 65. Section 171.685, Tax Code, is amended to read as
48-10 follows:
48-11 Sec. 171.685. LIMITATION. The total credits claimed under
48-12 this subchapter for a privilege period may not exceed 50 percent of
48-13 the amount of [net] franchise tax due for the privilege period
48-14 before [after] any other applicable tax credits.
48-15 SECTION 66. Subsection (b), Section 171.705, Tax Code, is
48-16 amended to read as follows:
48-17 (b) A corporation may not claim a credit in an amount that
48-18 exceeds 90 percent of the amount of tax due for the report before
48-19 any other applicable credits.
48-20 SECTION 67. Section 171.753, Tax Code, is amended to read as
48-21 follows:
48-22 Sec. 171.753. CALCULATION OF CREDIT. A corporation may
48-23 establish a credit equal to five [25] percent of the total wages
48-24 and salaries paid by the corporation for qualifying jobs during the
48-25 period upon which the tax is based.
48-26 SECTION 68. Section 171.754, Tax Code, is amended to read as
48-27 follows:
49-1 Sec. 171.754. LENGTH OF CREDIT. The credit established
49-2 shall be established on [claimed in five equal installments of
49-3 one-fifth the credit amount over the] five consecutive reports
49-4 beginning with the report based upon the period during which the
49-5 qualifying jobs were created.
49-6 SECTION 69. Section 171.756, Tax Code, is amended to read as
49-7 follows:
49-8 Sec. 171.756. CARRYFORWARD. (a) If a corporation is
49-9 eligible for a credit [from an installment] that exceeds the
49-10 limitations under Section 171.755(a) or (b), the corporation may
49-11 carry the unused credit forward for not more than five consecutive
49-12 reports.
49-13 (b) A carryforward is considered the remaining portion of a
49-14 credit [an installment] that cannot be claimed in the current year
49-15 because of the tax limitation under Section 171.755. A
49-16 carryforward is added to the next year's [installment of the]
49-17 credit in determining the tax limitation for that year. A credit
49-18 carryforward from a previous report is considered to be utilized
49-19 before the current year credit [installment].
49-20 SECTION 70. Section 171.831, Tax Code, is amended to read as
49-21 follows:
49-22 Sec. 171.831. DEFINITION. In this subchapter, "school-age
49-23 child care" means care provided before or [and] after school and
49-24 during the summer and holidays for children who are at least five
49-25 years of age but younger than 14 years of age.
49-26 SECTION 71. Subsection (c), Section 171.834, Tax Code, is
49-27 amended to read as follows:
50-1 (c) A corporation may not claim a credit in an amount that
50-2 exceeds 50 percent of the amount of [net] franchise tax due, before
50-3 [after] applying any other credits, for the reporting period.
50-4 SECTION 72. Chapter 171, Tax Code, is amended by adding
50-5 Subchapter S to read as follows:
50-6 SUBCHAPTER S. CREDITS LIMITATION
50-7 Sec. 171.851. LIMITATION. The total credits claimed under
50-8 this chapter for a report, including the amount of any carryforward
50-9 credits, may not exceed the amount of franchise tax due for the
50-10 report.
50-11 SECTION 73. Section 211.055, Tax Code, is amended to read as
50-12 follows:
50-13 Sec. 211.055. MAXIMUM TAX. The amount of tax imposed by
50-14 this chapter may not exceed the amount of the tax imposed under
50-15 Section 2001, Internal Revenue Code, reduced by the unified credit
50-16 provided under Section 2010, Internal Revenue Code [taxes imposed
50-17 by this chapter, when added to the federal tax as finally assessed
50-18 and determined, may not exceed the amount of the federal tax which,
50-19 without application of this chapter and the federal credit and the
50-20 generation-skipping transfer tax credit to which it refers, would
50-21 otherwise be payable to the federal government under Subtitle B,
50-22 Chapters 11 and 13, Internal Revenue Code].
50-23 SECTION 74. Section 321.102, Tax Code, is amended by
50-24 amending Subsection (g) and adding Subsections (h) and (i) to read
50-25 as follows:
50-26 (g) Subsections (e) and (f) do not apply if and during any
50-27 period in which a local governmental entity has outstanding
51-1 indebtedness or obligations that are payable wholly or partly from
51-2 the sales and use tax revenue of the entity. A municipality may
51-3 not implement the imposition or increase of the sales and use tax
51-4 as a result of the circumstances described by Subsection (e) if, as
51-5 a result of the implementation of that imposition or increase, the
51-6 combined rate of all sales and use taxes imposed by the
51-7 municipality, the local governmental entity, and any other
51-8 political subdivisions having territory in the district would
51-9 exceed two percent at any location in the municipality.
51-10 (h) A transit authority is not a local governmental entity
51-11 for the purposes of Subsections (e) and (f).
51-12 (i) Subsection (g) does not apply to a local governmental
51-13 entity or political subdivision created under Chapter 326, Local
51-14 Government Code.
51-15 SECTION 75. Subchapter D, Chapter 321, Tax Code, is amended
51-16 by adding Section 321.312 to read as follows:
51-17 Sec. 321.312. RETENTION OF CERTAIN MUNICIPAL SALES TAXES. A
51-18 municipality that holds a sales and use tax permit issued by the
51-19 comptroller and that imposes a sales and use tax may retain the
51-20 portion of the tax that the municipality collects and that
51-21 constitutes the municipality's own tax. The municipality shall
51-22 remit to the comptroller all other applicable local sales and use
51-23 taxes and the state sales and use tax.
51-24 SECTION 76. Subchapter D, Chapter 322, Tax Code, is amended
51-25 by adding Section 322.306 to read as follows:
51-26 Sec. 322.306. RETENTION OF CERTAIN SPECIAL PURPOSE DISTRICT
51-27 SALES TAXES. A taxing entity that holds a sales and use tax permit
52-1 issued by the comptroller and that imposes a sales and use tax may
52-2 retain the portion of the tax that the taxing entity collects and
52-3 that constitutes the entity's own tax. The taxing entity shall
52-4 remit to the comptroller all other applicable local sales and use
52-5 taxes and the state sales and use tax.
52-6 SECTION 77. Subchapter D, Chapter 323, Tax Code, is amended
52-7 by adding Section 323.312 to read as follows:
52-8 Sec. 323.312. RETENTION OF CERTAIN COUNTY SALES TAXES. A
52-9 county that holds a sales and use tax permit issued by the
52-10 comptroller and that imposes a sales and use tax may retain the
52-11 portion of the tax that the county collects and that constitutes
52-12 the county's own tax. The county shall remit to the comptroller
52-13 all other applicable local sales and use taxes and the state sales
52-14 and use tax.
52-15 SECTION 78. Subsection (a), Section 311.045, Health and
52-16 Safety Code, is amended to read as follows:
52-17 (a) A nonprofit hospital or hospital system shall annually
52-18 satisfy the requirements of this subchapter and of Sections
52-19 11.18(d)(1), 151.310(a)(2) and (e), and 171.063(a)(1), Tax Code, to
52-20 provide community benefits which include charity care and
52-21 government-sponsored indigent health care by complying with one or
52-22 more of the standards set forth in Subsection (b). The hospital or
52-23 hospital system shall file a statement with the Bureau of State
52-24 Health Data and Policy Analysis at the department and[, with] the
52-25 chief appraiser of the local appraisal district[, and with the
52-26 comptroller's office] no later than the 120th day after the
52-27 hospital's or hospital system's fiscal year ends, stating which of
53-1 the standards in Subsection (b) have been satisfied, provided,
53-2 however, that the first report shall be filed no later than the
53-3 120th day after the end of the hospital's or hospital system's
53-4 fiscal year ending during 1994. For hospitals in a hospital
53-5 system, the corporate parent may elect to satisfy the charity care
53-6 requirements of this subchapter for each of the hospitals within
53-7 the system on a consolidated basis.
53-8 SECTION 79. Section 2153.002(1), Occupations Code, is
53-9 amended to read as follows:
53-10 (1) "Coin-operated machine" means any kind of machine
53-11 or device operated by or with a coin or other United States
53-12 currency, metal slug, token, electronic card, or check, including a
53-13 music or skill or pleasure coin-operated machine.
53-14 SECTION 80. Section 74.402, Property Code, is amended to
53-15 read as follows:
53-16 Sec. 74.402. NOTICE OF SALE. Before the 21st day preceding
53-17 the day on which a public sale is held under Section 74.401, the
53-18 comptroller shall publish notice of the sale in a newspaper of
53-19 general circulation in Travis County or in the county where the
53-20 sale is to be held. If the public sale is to be held on the
53-21 Internet or by an online auction, the comptroller may post the
53-22 notice on the comptroller's own website before the seventh day
53-23 preceding the date on which the sale or auction is held.
53-24 SECTION 81. Subsection (e), Section 11.011, Texas Racing Act
53-25 (Article 179e, Vernon's Texas Civil Statutes), is amended to read
53-26 as follows:
53-27 (e) The racetrack where the wager is made is responsible for
54-1 reporting and remitting the state's share of the pari-mutuel pool.
54-2 [If intrastate wagering pools are combined between tracks, the
54-3 track where the race originates is responsible for the state's
54-4 share of the pari-mutuel pool regardless of whether a shortage or
54-5 error occurred at the originating track or receiving track.]
54-6 SECTION 82. Section 1, Article 6550c-1, Revised Statutes, is
54-7 amended by amending Subdivision (6) and adding Subdivision (7) to
54-8 read as follows:
54-9 (6) "District property" means all property the
54-10 district owns or leases under a long-term lease.
54-11 (7) "System" means all of the commuter rail and
54-12 intermodal facilities leased or owned by or operated on behalf of a
54-13 district created under this article.
54-14 SECTION 83. Section 9, Article 6550c-1, Revised Statutes, is
54-15 amended to read as follows:
54-16 Sec. 9. SALES AND USE TAXES. (a) A [district shall collect
54-17 or cause to be collected] sales and use tax is imposed [taxes] on
54-18 items sold on district property. The sales and use tax shall be
54-19 imposed [collected] at the rate of the highest combination of
54-20 [state and] local sales and use taxes imposed at the time of the
54-21 district's creation in any local governmental jurisdiction which is
54-22 a member of a district. The [After deducting the state share of
54-23 sales and use taxes, the] comptroller shall remit to a district the
54-24 local sales and use tax collected on the district's property. All
54-25 other local sales and use taxes that would otherwise be imposed on
54-26 district property are preempted by the imposition of this tax.
54-27 (b) The comptroller shall administer, collect, and enforce a
55-1 tax imposed under this Act. Chapter 321, Tax Code, governs the
55-2 computation, administration, governance, and use of the tax except
55-3 as inconsistent with this Act.
55-4 (c) The district shall notify the comptroller in writing by
55-5 United States registered or certified mail of the district's
55-6 creation and of its intent to impose the sales and use tax under
55-7 this Act. The district shall provide to the comptroller all
55-8 information required to implement the tax, including:
55-9 (1) an adequate map showing the property boundaries of
55-10 the district;
55-11 (2) a certified copy of the resolution of the district
55-12 board adopting the tax; and
55-13 (3) certified copies of the resolutions of the
55-14 governing bodies of the municipalities creating the district and of
55-15 the commissioners courts in the counties in which the
55-16 municipalities are located.
55-17 (d) Not later than the 30th day after the date the
55-18 comptroller receives the notice, map, and other information, the
55-19 comptroller shall inform the district whether the comptroller is
55-20 prepared to administer the tax.
55-21 (e) At the same time the district notifies the comptroller
55-22 under Subsection (c) of this section, the district shall notify
55-23 each affected local governmental jurisdiction of the district's
55-24 creation and provide each jurisdiction with an adequate map showing
55-25 the property boundaries of the district.
55-26 (f) Not later than the 30th day after the date the district
55-27 acquires additional territory, the district shall notify the
56-1 comptroller and each affected local governmental jurisdiction of
56-2 the acquisition. The district must include with each notification
56-3 an adequate map showing the new property boundaries of the district
56-4 and the date the additional territory was acquired. Not later than
56-5 the 30th day after the date the comptroller receives the notice
56-6 under this subsection, the comptroller shall inform the district
56-7 whether the comptroller is prepared to administer the tax in the
56-8 additional territory.
56-9 (g) A tax imposed under this Act or the repeal of a tax
56-10 abolished under this Act takes effect on the first day of the first
56-11 complete calendar quarter that occurs after the expiration of the
56-12 first complete calendar quarter that occurs after the date the
56-13 comptroller receives a notice of the action as required by this
56-14 section.
56-15 SECTION 84. The following provisions of the Tax Code are
56-16 repealed:
56-17 (1) Subsections (d) and (e), Section 151.319;
56-18 (2) Subsections (c) and (d), Section 171.757; and
56-19 (3) Subsection (b), Section 201.052.
56-20 SECTION 85. Each change in law made by this Act to the
56-21 following provisions is a clarification of existing law and does
56-22 not imply that existing law may be construed as inconsistent with
56-23 the law as amended by this Act:
56-24 (1) Subsection (b), Section 111.0081, Tax Code;
56-25 (2) Subsection (a), Section 151.007, Tax Code;
56-26 (3) Section 151.010, Tax Code;
56-27 (4) Section 151.057, Tax Code;
57-1 (5) Subsection (b), Section 151.257, Tax Code;
57-2 (6) Subsection (a), Section 151.308, Tax Code;
57-3 (7) Subsection (d), Section 151.310, Tax Code;
57-4 (8) Section 151.313, Tax Code;
57-5 (9) Subsection (a), Section 151.317, Tax Code;
57-6 (10) Subsections (a) and (t), Section 151.318, Tax
57-7 Code;
57-8 (11) Subsection (e), Section 151.3185, Tax Code;
57-9 (12) Subsection (b), Section 151.319, Tax Code;
57-10 (13) Subsection (a), Section 152.047, Tax Code;
57-11 (14) Subsection (d), Section 152.091, Tax Code;
57-12 (15) Subdivision (25), Section 153.001, Tax Code;
57-13 (16) Subsection (i), Section 153.018, Tax Code;
57-14 (17) Subsection (a), Section 153.117, Tax Code;
57-15 (18) Section 153.205, Tax Code;
57-16 (19) Subsection (c), Section 153.206, Tax Code;
57-17 (20) Subsection (j), Section 153.219, Tax Code;
57-18 (21) Subsections (a) and (c), Section 153.221, Tax
57-19 Code;
57-20 (22) Subdivision (13), Section 154.001, Tax Code;
57-21 (23) Subsections (a), (b), and (h), Section 154.101,
57-22 Tax Code;
57-23 (24) Subsection (a), Section 154.102, Tax Code;
57-24 (25) Subsection (a), Section 154.110, Tax Code;
57-25 (26) Subsection (a), Section 154.501, Tax Code;
57-26 (27) Subdivision (11), Section 155.001, Tax Code;
57-27 (28) Subsections (a), (b), and (h), Section 155.041,
58-1 Tax Code;
58-2 (29) Subsection (a), Section 155.048, Tax Code;
58-3 (30) Subsection (a), Section 155.201, Tax Code;
58-4 (31) Subsections (a) and (c), Section 171.1032, Tax
58-5 Code;
58-6 (32) Subsections (a) and (d), Section 171.1051, Tax
58-7 Code;
58-8 (33) Subsection (e), Section 171.1121, Tax Code;
58-9 (34) Subsection (b), Section 171.260, Tax Code;
58-10 (35) Section 171.831, Tax Code; and
58-11 (36) Subchapter S, Chapter 171, Tax Code.
58-12 SECTION 86. (a) The changes to Subsection (b), Section
58-13 326.023, Local Government Code, made by Section 2 of this Act apply
58-14 only to a petition filed with a commissioners court on or after the
58-15 effective date of that section. A petition filed before that date
58-16 is governed by the law in effect on the date the petition is filed,
58-17 and that law is continued in effect for that purpose.
58-18 (b) The changes to Section 326.029, Local Government Code,
58-19 made by Section 3 of this Act apply only to an order issued on or
58-20 after the effective date of that section. An order issued before
58-21 that date is governed by the law in effect on the date the order is
58-22 issued, and that law is continued in effect for that purpose.
58-23 SECTION 87. The comptroller of public accounts may adopt
58-24 rules and take other actions before October 1, 2001, as the
58-25 comptroller considers necessary or advisable to prepare for this
58-26 Act to take effect.
58-27 SECTION 88. (a) Except as otherwise provided by this
59-1 section, this Act takes effect September 1, 2001.
59-2 (b) Sections 12, 13, 14, 15, 17 through 26, 29 through 55,
59-3 75 through 77, and 81 of this Act, and Subdivisions (1) and (3),
59-4 Section 84, of this Act, take effect October 1, 2001.
59-5 (c) Sections 57 through 72 of this Act and Subdivision (2),
59-6 Section 84, of this Act take effect January 1, 2002, and apply to a
59-7 report originally due on or after that date.