Bill Text: TX HB4371 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to an exemption from sales and use taxes for certain items used by or for certain life sciences campuses.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-21 - Referred to Ways & Means [HB4371 Detail]
Download: Texas-2023-HB4371-Introduced.html
| 88R13363 CJD-F | ||
| By: Shine | H.B. No. 4371 | |
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| relating to an exemption from sales and use taxes for certain items | ||
| used by or for certain life sciences campuses. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended | ||
| by adding Section 151.360 to read as follows: | ||
| Sec. 151.360. ITEMS USED FOR CERTAIN LIFE SCIENCES | ||
| CAMPUSES. (a) In this section: | ||
| (1) "Affiliated group" has the meaning assigned by | ||
| Section 171.0001. | ||
| (2) "Life sciences activity" includes, when conducted | ||
| with respect to an existing or potential life sciences product or | ||
| service: | ||
| (A) discovery; | ||
| (B) research, including pre-clinical and | ||
| clinical; | ||
| (C) development; | ||
| (D) testing; | ||
| (E) clinical trials; | ||
| (F) regulatory application and review; | ||
| (G) dispensation; | ||
| (H) administration; | ||
| (I) prescription; | ||
| (J) manufacture; and | ||
| (K) production. | ||
| (3) "Life sciences campus" means a building that has | ||
| at least 1,500,000 square feet of space and any other buildings and | ||
| improvements to real property: | ||
| (A) that are owned by a single owner or by | ||
| multiple owners that are members of the same affiliated group; | ||
| (B) that are located or to be located on a single | ||
| parcel of land, or on multiple parcels of land, if each parcel of | ||
| land is: | ||
| (i) located entirely within a county: | ||
| (a) with a population of one million | ||
| or more; | ||
| (b) in which all or part of a | ||
| municipality with a population of one million or more is located; | ||
| and | ||
| (c) that is located adjacent to a | ||
| county with a population of 2.5 million or more; and | ||
| (ii) owned by a single owner or by multiple | ||
| owners that are members of the same affiliated group; | ||
| (C) the owner or owners of which, on or before | ||
| January 1, 2030, make a capital investment of at least $1 billion to | ||
| construct, refurbish, repair, restore, remodel, or modify for use | ||
| primarily to conduct life sciences activities and other activities | ||
| necessary and essential to life sciences activities; and | ||
| (D) that, on completion of the construction, | ||
| refurbishment, repair, restoration, remodeling, or modification, | ||
| are used by an owner or tenant primarily to conduct life sciences | ||
| activities and other activities necessary and essential to life | ||
| sciences activities. | ||
| (4) "Life sciences product or service" includes a | ||
| drug, medicine, therapeutic appliance, device, or supply, another | ||
| similar or related item, or an item intended for use with or as a | ||
| component of an item listed in this subdivision if the item is | ||
| intended to: | ||
| (A) be dispensed, administered, or prescribed | ||
| for use in the diagnosis, cure, mitigation, treatment, or | ||
| prevention of disease in humans or other animals; or | ||
| (B) affect the structure or function of the body | ||
| of humans or other animals. | ||
| (5) "Tenant" means a person who rents space in a life | ||
| sciences campus and whose activities at the campus are primarily | ||
| life sciences activities. | ||
| (b) The following are exempted from the taxes imposed by | ||
| this chapter: | ||
| (1) tangible personal property that is used to | ||
| construct, refurbish, repair, restore, remodel, or modify an | ||
| improvement to real property that is: | ||
| (A) part of a life sciences campus; or | ||
| (B) installed at or incorporated into an | ||
| improvement to real property that is part of a life sciences campus; | ||
| (2) labor to construct, refurbish, repair, restore, | ||
| remodel, or modify an improvement to real property that is part of a | ||
| life sciences campus; | ||
| (3) tangible personal property that is purchased, | ||
| leased, or rented by a tenant or an owner of a life sciences campus | ||
| for use primarily in the conduct of life sciences activities at the | ||
| life sciences campus; and | ||
| (4) gas and electricity that is purchased by a tenant | ||
| or an owner of a life sciences campus for use at the life sciences | ||
| campus. | ||
| (c) The exemption provided by this section does not apply to | ||
| the taxes imposed under Chapter 321, 322, or 323. | ||
| SECTION 2. Sections 151.317(a) and (b), Tax Code, are | ||
| amended to read as follows: | ||
| (a) Subject to Sections 151.1551, 151.359, [ |
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| and 151.360 and Subsection (d) of this section, gas and electricity | ||
| are exempted from the taxes imposed by this chapter when sold for: | ||
| (1) residential use; | ||
| (2) use in powering equipment exempt under Section | ||
| 151.318 or 151.3185 by a person processing tangible personal | ||
| property for sale as tangible personal property, other than | ||
| preparation or storage of prepared food described by Section | ||
| 151.314(c-2); | ||
| (3) use in lighting, cooling, and heating in the | ||
| manufacturing area during the actual manufacturing or processing of | ||
| tangible personal property for sale as tangible personal property, | ||
| other than preparation or storage of prepared food described by | ||
| Section 151.314(c-2); | ||
| (4) use directly in exploring for, producing, or | ||
| transporting, a material extracted from the earth; | ||
| (5) use in agriculture, including dairy or poultry | ||
| operations and pumping for farm or ranch irrigation; | ||
| (6) use directly in electrical processes, such as | ||
| electroplating, electrolysis, and cathodic protection; | ||
| (7) use directly in the off-wing processing, overhaul, | ||
| or repair of a jet turbine engine or its parts for a certificated or | ||
| licensed carrier of persons or property; | ||
| (8) use directly in providing, under contracts with or | ||
| on behalf of the United States government or foreign governments, | ||
| defense or national security-related electronics, classified | ||
| intelligence data processing and handling systems, or | ||
| defense-related platform modifications or upgrades; | ||
| (9) use directly by a data center or large data center | ||
| project that is certified by the comptroller as a qualifying data | ||
| center under Section 151.359 or a qualifying large data center | ||
| project under Section 151.3595 in the processing, storage, and | ||
| distribution of data; | ||
| (10) a direct or indirect use, consumption, or loss of | ||
| electricity by an electric utility engaged in the purchase of | ||
| electricity for resale; [ |
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| (11) use in timber operations, including pumping for | ||
| irrigation of timberland; or | ||
| (12) use at a life sciences campus that qualifies for | ||
| the exemption provided by Section 151.360. | ||
| (b) The sale, production, distribution, lease, or rental | ||
| of, and the use, storage, or other consumption in this state of, gas | ||
| and electricity sold for the uses listed in Subsection (a), are | ||
| exempted from the taxes imposed by a municipality under Chapter 321 | ||
| except as provided by Sections 151.359(j), 151.360(c), and 321.105. | ||
| SECTION 3. The change in law made by this Act does not | ||
| affect tax liability accruing before the effective date of this | ||
| Act. That liability continues in effect as if this Act had not been | ||
| enacted, and the former law is continued in effect for the | ||
| collection of taxes due and for civil and criminal enforcement of | ||
| the liability for those taxes. | ||
| SECTION 4. This Act takes effect September 1, 2023. | ||
