H.B. No. 1133

	AN ACT
	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.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
	by adding Section 151.3186 to read as follows:
	Sec. 151.3186.  PROPERTY USED IN CABLE TELEVISION, INTERNET
	ACCESS, OR TELECOMMUNICATIONS SERVICES. (a) In this section,
	"provider" means a provider of cable television service, Internet
	access service, or telecommunications services.
	(b)  A provider is entitled to a refund of the tax imposed by
	this chapter on the sale, lease, or rental or storage, use, or other
	consumption of tangible personal property if:
	(1)  the property is sold, leased, or rented to or
	stored, used, or consumed by a provider or a subsidiary of a
	provider; and
	(2)  the property is directly used or consumed by the
	provider or subsidiary described by Subdivision (1) in or during:
	(A)  the distribution of cable television
	service;
	(B)  the provision of Internet access service; or
	(C)  the transmission, conveyance, routing, or
	reception of telecommunications services.
	(c)  Notwithstanding Subsection (b), property directly used
	or consumed in or during the provision, creation, or production of a
	data processing service or information service is not eligible for
	a refund under this section.
	(d)  The amount of the refund to which a provider or
	subsidiary, as described by Subsection (b)(1), is entitled under
	this section for a calendar year is equal to:
	(1)  the amount of the tax paid by the provider or
	subsidiary during the calendar year on property eligible for a
	refund under this section, if the total amount of tax paid by all
	providers and subsidiaries described by Subsection (b)(1) that are
	eligible for a refund under this section is not more than $50
	million for the calendar year; or
	(2)  a pro rata share of $50 million, if the total
	amount of tax paid by all providers and subsidiaries described by
	Subsection (b)(1) that are eligible for a refund under this section
	is more than $50 million for the calendar year.
	(e)  The refund provided by this section does not apply to
	the taxes imposed under Subtitle C, Title 3.
	SECTION 2.  Section 313.021(2), Tax Code, is amended to read
	as follows:
	(2)  "Qualified property" means:
	(A)  land:
	(i)  that is located in an area designated as
	a reinvestment zone under Chapter 311 or 312 or as an enterprise
	zone under Chapter 2303, Government Code;
	(ii)  on which a person proposes to
	construct a new building or erect or affix a new improvement that
	does not exist before the date the person applies for a limitation
	on appraised value under this subchapter;
	(iii)  that is not subject to a tax abatement
	agreement entered into by a school district under Chapter 312; and
	(iv)  on which, in connection with the new
	building or new improvement described by Subparagraph (ii), the
	owner or lessee of, or the holder of another possessory interest in,
	the land proposes to:
	(a)  make a qualified investment in an
	amount equal to at least the minimum amount required by Section
	313.023; and
	(b)  create at least 25 new jobs;
	(B)  the new building or other new improvement
	described by Paragraph (A)(ii); and
	(C)  tangible personal property [that]:
	(i)  that is not subject to a tax abatement
	agreement entered into by a school district under Chapter 312;
	[and]
	(ii)  for which a sales and use tax refund is
	not claimed under Section 151.3186; and
	(iii)  except for new equipment described in
	Section 151.318(q) or (q-1), that is first placed in service in the
	new building or in or on the new improvement described by Paragraph
	(A)(ii), or on the land on which that new building or new
	improvement is located, if the personal property is ancillary and
	necessary to the business conducted in that new building or in or on
	that new improvement.
	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, 2013.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 1133 was passed by the House on May 7,
	2013, by the following vote:  Yeas 130, Nays 0, 4 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 1133 was passed by the Senate on May
	21, 2013, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor