Honorable Tommy Williams, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
HB1133 by Otto (Relating to a sales and use tax refund for tangible personal property used to provide cable television service, Internet access service, or telecommunications services and to the exclusion of that property in certain economic development agreements.), As Engrossed
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The bill would amend Chapters 151 and 313, Tax Code, in relation to taxation of certain property used to provide cable television service, internet access service, and telecommunications service.
A new Section 151.3186 would be added to provide for refund of state sales and use tax imposed on tangible personal property directly used or consumed in or during the distribution of cable television service, the provision of internet access service, or the transmission, conveyance, routing or reception of telecommunications services by the service provider or a subsidiary of the service provider. Tax paid on items directly used or consumed in or during the provision, creation, or production of data processing or information services would not be eligible for refund.
The bill would provide for an annual limit of $50 million on the aggregate amount of refunds that could be made for each calendar year under the new section. If the total amount of tax paid by all providers and subsidiaries for a calendar year is more than $50 million, each provider or subsidiary would be entitled to a pro rata share of $50 million.
The entitlement to refunds would not apply to taxes imposed under Subtitle C, Title 3, Tax Code (local sales and use taxes).
Section 313.021(2) would be amended to exclude property for which a refund is claimed under Section 151.3186 from a limitation on appraised value in an economic development agreement under Chapter 313.
The bill would take effect September 1, 2013.
304 Comptroller of Public Accounts
UP, KK, SD