Bill Text: TX HB126 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to refunds or credits of certain sales tax paid by certain business entities during a limited period.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-02-06 - Referred to Ways & Means [HB126 Detail]
Download: Texas-2013-HB126-Introduced.html
83R1826 KLA-D | ||
By: Raymond | H.B. No. 126 |
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relating to refunds or credits of certain sales tax paid by certain | ||
business entities during a limited period. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended | ||
by adding Section 151.3411 to read as follows: | ||
Sec. 151.3411. COMPUTER EQUIPMENT SOLD TO OR USED BY | ||
ELIGIBLE BUSINESS ENTITIES DURING CERTAIN PERIODS. (a) In this | ||
section: | ||
(1) "Computer equipment" means a desktop or notebook | ||
computer and related equipment, including: | ||
(A) a computer monitor or other display device; | ||
(B) a printer, which may also be capable of | ||
performing scanning, photocopying, or facsimile functions; and | ||
(C) other hardware or networking equipment for | ||
computers, such as adapters, modems, servers, routers, and other | ||
equipment associated with Internet access. | ||
(2) "County average weekly wage" means the average | ||
weekly wage in a county for all jobs during the most recent four | ||
quarterly periods for which data is available, as computed by the | ||
Texas Workforce Commission, at the time a small business creates a | ||
job used to qualify for an exemption under this section. | ||
(3) "Eligible small business" means a small business | ||
that meets the qualifications prescribed by Subsection (c). | ||
(4) "Permanent job" means an employment position that | ||
will exist for at least five years after the date the job is | ||
created. | ||
(5) "Qualifying job" means a full-time, permanent job | ||
the weekly wage for which exceeds the county average weekly wage in | ||
the county in which the job is based. | ||
(6) "Small business" means a corporation, | ||
partnership, sole proprietorship, or other legal entity that | ||
employs fewer than 100 full-time, permanent employees, including | ||
the employees employed in the qualified jobs created to qualify for | ||
an exemption under this section. | ||
(b) An eligible small business may claim a refund or credit | ||
as provided by this section for the taxes imposed by this chapter | ||
and paid on the sale, lease, or rental to or use by the business of a | ||
taxable item that is computer equipment if: | ||
(1) the item: | ||
(A) is for the exclusive use and benefit of the | ||
business; | ||
(B) is necessary for the operation of the | ||
business; and | ||
(C) replaces an item that is computer equipment | ||
with respect to the sale, lease, rental, or use of which the | ||
business previously paid the tax imposed by this chapter, subject | ||
to Subsection (e); and | ||
(2) the sale, lease, rental, or use of the item occurs | ||
not later than the fifth anniversary of the date the business | ||
initially qualifies as an eligible small business. | ||
(c) A small business is eligible for the refund or credit | ||
under this section if the business: | ||
(1) on or after September 1, 2013: | ||
(A) begins engaging in business in this state, | ||
subject to Subsection (d); | ||
(B) creates at least 25 qualifying jobs in the | ||
county in which the headquarters or other main office of the | ||
business is located; | ||
(C) invests at least $10 million in capital | ||
investments in this state; and | ||
(D) purchases, leases, rents, or uses computer | ||
equipment for the exclusive use and benefit of the business that is | ||
necessary for the operation of the business and pays the tax imposed | ||
by this chapter on that purchase, lease, rental, or use; and | ||
(2) certifies in writing to the comptroller that, in | ||
the absence of the refund or credit under this section, the business | ||
would not have begun engaging in business in this state. | ||
(d) A small business is not considered to have begun | ||
engaging in business in this state on or after September 1, 2013, | ||
for purposes of Subsection (c)(1)(A) if the business is a | ||
subsidiary or affiliate of another business entity that engaged in | ||
business in this state before that date. | ||
(e) Each item that is computer equipment with respect to | ||
which the eligible small business claims the refund or credit may | ||
replace only one item that is computer equipment described by | ||
Subsection (b)(1)(C), and the business may not receive a refund or | ||
credit for more items than the number of items being replaced. The | ||
sales price of the replacement item may not be more than the sales | ||
price of the item that is replaced, and the replacement item and the | ||
item that is replaced must be the same type of computer equipment. | ||
(f) An eligible small business entitled to a credit or | ||
refund under this section may elect to receive either a credit or a | ||
refund. A business that elects to receive a credit must claim the | ||
credit on the return for the period that ends not later than the | ||
first anniversary of the date the taxable event occurred. A | ||
business that elects to receive a refund must apply to the | ||
comptroller for the refund before or during the calendar year | ||
following the year in which the tax was paid. The certification | ||
required by Subsection (c)(2) may be made in conjunction with the | ||
return on which the credit is claimed or with the application for | ||
the refund. | ||
(g) The comptroller may require a small business that claims | ||
a credit or applies for a refund under this section to provide to | ||
the comptroller additional documentation necessary to establish | ||
that the business is an eligible small business. | ||
(h) A refund under this section is not a refund of taxes | ||
erroneously collected, and Section 111.064 does not apply. | ||
(i) The comptroller shall adopt rules necessary to | ||
implement this section, including rules relating to the: | ||
(1) qualification of a small business for a refund or | ||
credit under this section; | ||
(2) determination of the date a small business | ||
initially qualifies as an eligible small business; and | ||
(3) circumstances under which computer equipment is | ||
considered to replace other computer equipment. | ||
SECTION 2. 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 3. This Act takes effect September 1, 2013. |