87R7541 SMT-D
 
  By: Howard H.B. No. 2663
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the rate of state sales and use taxes imposed on certain
  personal services and the use of a portion of the revenue from those
  taxes for sexual assault programs; increasing the rates of taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 151.051, Tax Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  Notwithstanding Subsection (b), the sales tax rate is
  18.75 percent of the sales price of a taxable item sold that is a
  personal service listed under Group 729 of the Standard Industrial
  Classification Manual, 1972, as massage parlors, an escort service,
  or Turkish baths.
         SECTION 2.  Section 151.0595(e), Tax Code, is amended to
  read as follows:
         (e)  As soon as practicable after the end of a state fiscal
  year, the comptroller shall determine the estimated average rate of
  local sales and use taxes imposed in this state during the preceding
  state fiscal year by:
               (1)  dividing the total amount of net local sales and
  use taxes remitted to the comptroller under this section and Title 3
  during that state fiscal year by the total amount of net state sales
  and use taxes remitted to the comptroller under this chapter during
  that state fiscal year;
               (2)  multiplying the amount computed under Subdivision
  (1) by the rate provided by Section 151.051(b) [151.051]; and
               (3)  rounding the amount computed under Subdivision (2)
  to the nearest .0025.
         SECTION 3.  Subchapter M, Chapter 151, Tax Code, is amended
  by adding Section 151.805 to read as follows:
         Sec. 151.805.  USE OF CERTAIN REVENUE FOR SEXUAL ASSAULT
  PROGRAMS. Notwithstanding Section 151.801(a), an amount equal to
  the proceeds from the collection of sales and use taxes imposed on
  the sale or use of personal services described by Section
  151.051(c) at a rate of 12.5 percent shall be deposited to the
  credit of the sexual assault prevention and crisis services fund
  established under Section 420.007, Government Code.
         SECTION 4.  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 5.  This Act takes effect October 1, 2021.