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  H.B. No. 590
 
 
 
 
AN ACT
  relating to the consummation of sales for purposes of local sales
  and use taxes and to the reallocation of those taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 321.002, Tax Code, is amended to read as
  follows:
         Sec. 
  321.002.  DEFINITIONS.  (a)  In this chapter:
               (1)  "Additional municipal sales and use tax" means
  only the additional tax authorized by Section 321.101(b).
               (2)  "Municipality" includes any incorporated city,
  town, or village.
               (3)  "Place of business of the retailer" means an
  established outlet, office, or location operated by the retailer or
  the retailer's agent or employee for the purpose of receiving
  orders for taxable items and includes any location at which three or
  more orders are received by the retailer during a calendar year.  A
  warehouse, storage yard, or manufacturing plant is not a "place of
  business of the retailer" unless at last three orders are received
  by the retailer during the calendar year at the warehouse, storage
  yard, or manufacturing plant.  An outlet, office, facility, or any 
  location that contracts with a retail or commercial business
  [engaged in activities to which this chapter applies] to process
  for that business invoices, purchase orders, [or] bills of lading,
  or other equivalent records onto which sales tax is added,
  including an office operated for the purpose of buying and selling
  taxable goods to be used or consumed by the retail or commercial
  business, is not a "place of business of the retailer" if the
  comptroller determines that the outlet, office, facility, or
  location functions or exists to avoid the tax imposed by this
  chapter or to rebate a portion of the tax imposed by this chapter to
  the contracting business.  Notwithstanding any other provision of
  this subdivision, a kiosk is not a "place of business of the
  retailer."  In this subdivision, "kiosk" means a small stand-alone
  area or structure that:
                     (A)  is used solely to display merchandise or to
  submit orders for taxable items from a data entry device, or both;
                     (B)  is located entirely within a location that is
  a place of business of another retailer, such as a department store
  or shopping mall; and
                     (C)  at which taxable items are not available for
  immediate delivery to a customer.
         (b)  Words used in this chapter and defined by Chapter 151
  have the meanings assigned by Chapter 151.
         SECTION 2.  Subchapter F, Chapter 321, Tax Code, is amended
  by adding Section 321.510 to read as follows:
         Sec. 321.510.  REALLOCATION OF MUNICIPAL OR LOCAL
  GOVERNMENTAL ENTITY TAX REVENUE. (a)  In this section, "local
  governmental entity" includes any governmental entity created by
  the legislature that has a limited purpose or function, that has a
  defined or restricted geographic territory, and that is authorized
  by law to impose a local sales and use tax the imposition,
  computation, administration, enforcement, and collection of which
  is governed by this chapter.
         (b)  This section applies only if:
               (1)  the comptroller:
                     (A)  reallocates local tax revenue from a
  municipality or local governmental entity to another municipality
  or local governmental entity; or
                     (B)  refunds local tax revenue that was previously
  allocated to a municipality or local governmental entity; and
               (2)  the amount the comptroller reallocates or refunds
  is at least equal to the lesser of:
                     (A)  $200,000;
                     (B)  an amount equal to 10 percent of the revenue
  received by the municipality or local governmental entity under
  this chapter during the calendar year preceding the calendar year
  in which the reallocation or refund is made; or
                     (C)  an amount that increases or decreases the
  amount of revenue the municipality or local governmental entity
  receives under this chapter during a calendar month by more than 15
  percent as compared to revenue received by the municipality or
  local governmental entity during the same month in any previous
  year.
         (c)  Subject to the criteria provided by this section, a
  municipality or local governmental entity may request a review of
  all available sales tax returns and reports in the comptroller's
  possession filed by not more than five individual taxpayers doing
  business in the municipality or local governmental entity that are
  included and identified by the municipality or local governmental
  entity from the information received from the comptroller under
  Section 321.3022 and that relate to a reallocation or refund in an
  amount described by Subsection (b).
         (d)  The comptroller shall provide the returns and reports
  requested under Subsection (c) for review regardless of whether the
  information in the returns or reports is confidential under state
  law, including Sections 111.006 and 151.027.
         (e)  The provision of confidential information to a
  municipality or local governmental entity under this section does
  not affect the confidential nature of the information in the
  returns or reports. A municipality or local governmental entity
  shall use the information only in a manner that maintains the
  confidential nature of the information and may not disclose or
  release the information to the public.
         (f)  A municipality or local governmental entity must submit
  the request under Subsection (c) not later than the 90th day after
  the date the municipality or local governmental entity discovers a
  reallocation or refund described by Subsection (b).
         (g)  Not earlier than the 30th day or later than the 90th day
  after the date the comptroller receives a request under Subsection
  (c), the comptroller shall provide the requested returns and
  reports to the requesting municipality or local governmental entity
  for review.
         (h)  The comptroller may set and collect from a municipality
  or local governmental entity a reasonable fee to cover the expense
  of compiling and providing information under this section.
         SECTION 3.  Section 322.108(a), Tax Code, is amended to read
  as follows:
         (a)  Except as provided by Subsection (b), the following
  apply to the taxes imposed by this chapter in the same manner as
  applicable to a municipality under Chapter 321:
               (1)  Section 321.002(a)(3);
               (2)  Section 321.003;
               (3)  Section 321.203;
               (4)  Section 321.205(d);
               (5)  Section 321.208;
               (6)  Section 321.209;
               (7)  Section 321.303;
               (8)  Section 321.304; [and]
               (9)  Section 321.305; and
               (10)  Section 321.510.
         SECTION 4.  Subchapter F, Chapter 323, Tax Code, is amended
  by adding Section 323.510 to read as follows:
         Sec. 323.510.  REALLOCATION OF COUNTY OR LOCAL GOVERNMENTAL
  ENTITY TAX REVENUE. (a) In this section, "local governmental
  entity" includes any governmental entity created by the legislature
  that has a limited purpose or function, that has a defined or
  restricted geographic territory, and that is authorized by law to
  impose a local sales and use tax the imposition, computation,
  administration, enforcement, and collection of which is governed by
  this chapter.
         (b)  This section applies only if:
               (1)  the comptroller:
                     (A)  reallocates local tax revenue from a county
  or local governmental entity to another county or local
  governmental entity; or
                     (B)  refunds local tax revenue that was previously
  allocated to a county or local governmental entity; and
               (2)  the amount the comptroller reallocates or refunds
  is at least equal to the lesser of:
                     (A)  $200,000;
                     (B)  an amount equal to 10 percent of the revenue
  received by the county or local governmental entity under this
  chapter during the calendar year preceding the calendar year in
  which the reallocation or refund is made; or
                     (C)  an amount that increases or decreases the
  amount of revenue the county or local governmental entity receives
  under this chapter during a calendar month by more than 15 percent
  as compared to revenue received by the county or local governmental
  entity during the same month in any previous year.
         (c)  Subject to the criteria provided by this section, a
  county or local governmental entity may request a review of all
  available sales tax returns and reports in the comptroller's
  possession filed by not more than five individual taxpayers doing
  business in the county or local governmental entity that are
  included and identified by the county or local governmental entity
  from the information received from the comptroller under Section
  323.3022 and that relate to a reallocation or refund in an amount
  described by Subsection (b).
         (d)  The comptroller shall provide the returns and reports
  requested under Subsection (c) for review regardless of whether the
  information in the returns or reports is confidential under state
  law, including Sections 111.006 and 151.027.
         (e)  The provision of confidential information to a county or
  local governmental entity under this section does not affect the
  confidential nature of the information in the returns or reports. A
  county or local governmental entity shall use the information only
  in a manner that maintains the confidential nature of the
  information and may not disclose or release the information to the
  public.
         (f)  A county or local governmental entity must submit the
  request under Subsection (c) not later than the 90th day after the
  date the county or local governmental entity discovers a
  reallocation or refund described by Subsection (b).
         (g)  Not earlier than the 30th day or later than the 90th day
  after the date the comptroller receives a request under Subsection
  (c), the comptroller shall provide the requested returns and
  reports to the requesting county or local governmental entity for
  review.
         (h)  The comptroller may set and collect from a county or
  local governmental entity a reasonable fee to cover the expense of
  compiling and providing information under this section.
         SECTION 5.  Section 1 of this Act takes effect September 1,
  2011.
         SECTION 6.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 590 was passed by the House on May 11,
  2011, by the following vote:  Yeas 149, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 590 on May 25, 2011, by the following vote:  Yeas 142, Nays 0, 2
  present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 590 was passed by the Senate, with
  amendments, on May 20, 2011, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor