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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from the sales and use tax for tangible |
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personal property or a taxable service that is resold or otherwise |
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transferred. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.006, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (c) to read as |
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follows: |
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(a) "Sale for resale" means a sale of: |
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(1) tangible personal property or a taxable service to |
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a purchaser who acquires the property or service for the purpose of |
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reselling it with or as a taxable item in the United States of |
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America or a possession or territory of the United States of America |
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or in the United Mexican States in the normal course of business in |
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the form or condition in which it is acquired or as an attachment to |
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or integral part of other tangible personal property or taxable |
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service; |
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(2) tangible personal property to a purchaser for the |
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sole purpose of the purchaser's leasing or renting it in the United |
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States of America or a possession or territory of the United States |
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of America or in the United Mexican States in the normal course of |
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business to another person, but not if incidental to the leasing or |
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renting of real estate; |
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(3) tangible personal property to a purchaser who |
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acquires the property for the purpose of transferring it in the |
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United States of America or a possession or territory of the United |
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States of America or in the United Mexican States as an integral |
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part of a taxable service; [or] |
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(4) a taxable service performed on tangible personal |
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property that is held for sale by the purchaser of the taxable |
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service; or |
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(5) tangible personal property to a purchaser who |
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acquires the property for the sole purpose of transferring it as an |
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integral part of performing a contract with the federal government |
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only if the purchaser: |
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(A) allocates to the contract the cost of the |
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property as a direct or indirect cost; |
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(B) bills the cost of the property to the federal |
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government for reimbursement; and |
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(C) transfers title to the property to the |
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federal government under the contract and applicable federal |
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acquisition regulations. |
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(c) Except as otherwise provided by this chapter, a sale for |
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resale does not include the sale of tangible personal property or a |
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taxable service to a purchaser who acquires the property or service |
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for the purpose of performing a service that is not subject to |
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taxation under this chapter, regardless of whether title transfers |
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to the purchaser's customer. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |