Bill Text: TX HB3174 | 2015-2016 | 84th Legislature | Comm Sub
Bill Title: Relating to the application of the sales and use tax to certain computer program transactions.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2015-05-13 - Placed on General State Calendar [HB3174 Detail]
Download: Texas-2015-HB3174-Comm_Sub.html
84R21299 CBH-D | |||
By: Button, Miller of Comal, Bernal, Larson, | H.B. No. 3174 | ||
Martinez Fischer | |||
Substitute the following for H.B. No. 3174: | |||
By: Springer | C.S.H.B. No. 3174 |
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relating to the application of the sales and use tax to certain | ||
computer program transactions. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 151.006, Tax Code, is amended by adding | ||
Subsection (d) to read as follows: | ||
(d) A sale for resale includes the sale of a computer | ||
program to a provider of Internet hosting who acquires the computer | ||
program from an unrelated vendor for the purpose of selling the | ||
right to use the computer program to an unrelated user of the | ||
provider's Internet hosting services in the normal course of | ||
business and in the form or condition in which the provider acquired | ||
the computer program. For purposes of this subsection, the | ||
purchase of the computer program by the provider qualifies as a sale | ||
for resale only if the provider offers the unrelated user a | ||
selection of computer programs that are available to the public for | ||
purchase directly from an unrelated vendor and executes a written | ||
contract with the unrelated user that specifies the name of the | ||
computer program sold to the unrelated user and includes a charge to | ||
the unrelated user for computing hardware. This subsection applies | ||
notwithstanding Section 151.302(b), if the unrelated user | ||
purchases the right to use the computer program from the provider | ||
through the acquisition of a license and the provider does not | ||
retain the right to use the computer program under that license. | ||
The performance by the provider of routine maintenance of the | ||
computer program that is recommended or required by the unrelated | ||
vendor of the computer program does not affect the application of | ||
this subsection. In this subsection, "Internet hosting" has the | ||
meaning assigned by Section 151.108(a). | ||
SECTION 2. The changes in law made by this Act do 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 immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2015. |