Bill Text: TX HB3709 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to authorizing a county to impose a tax on the sale of certain solid materials and substances.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-05-03 - Left pending in committee [HB3709 Detail]

Download: Texas-2017-HB3709-Introduced.html
  85R12051 CBH-D
 
  By: Sheffield H.B. No. 3709
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to authorizing a county to impose a tax on the sale of
  certain solid materials and substances.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 3, Tax Code, is amended by
  adding Chapter 329 to read as follows:
  CHAPTER 329. COUNTY TAX ON SALE OF CERTAIN SOLID MATERIALS AND
  SUBSTANCES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 329.001.  DEFINITIONS. In this chapter:
               (1)  "First sale" with respect to taxable material
  means the first transfer of possession in connection with a
  purchase, sale, or any exchange for value of taxable material.
               (2)  "Place of business of the seller" means the
  location at which taxable materials are mined.
               (3)  "Seller" means a person engaged in the business of
  making sales of taxable materials.
               (4)  "Taxable material" means clay, stone, sand,
  gravel, aggregate, limestone, caliche, metalliferous and
  nonmetalliferous ores, and other solid materials or substances of
  commercial value excavated in solid form from natural deposits on
  or in the earth. The term does not include coal or lignite.
  SUBCHAPTER B. IMPOSITION OF TAX
         Sec. 329.051.  TAX AUTHORIZED. (a)  A county by order may
  impose a tax on the first sale of taxable material. Subsequent
  sales of taxable material are not subject to the tax authorized by
  this chapter.
         (b)  A sale of taxable material occurs in the county in which
  the sale is consummated. A sale of taxable material is consummated
  at the place of business of the seller regardless of:
               (1)  the place where the seller first receives the
  order for the sale;
               (2)  the place from which the seller ships or delivers
  the taxable material; or
               (3)  the place where transfer of title or possession
  occurs.
         Sec. 329.052.  TAX RATE. (a)  The county by order may impose
  the tax authorized by this chapter at any rate not to exceed 15
  cents for each ton or fraction of a ton of taxable material.
         (b)  A county by order may change the rate of the tax
  authorized by this chapter to any rate that does not exceed the
  maximum rate prescribed by Subsection (a).
         Sec. 329.053.  ABOLITION OF TAX. A county by order may
  abolish a tax authorized by this chapter.
         Sec. 329.054.  EFFECTIVE DATE AND ENDING DATE OF TAX. The
  imposition of the tax authorized by this chapter, a change in a tax
  rate, or the abolition of the tax takes effect on the date
  prescribed by the county order imposing the tax, changing the rate,
  or abolishing the tax.
  SUBCHAPTER C. COLLECTION AND ENFORCEMENT OF TAX
         Sec. 329.101.  DUTY TO COLLECT. (a) A county by order may
  require the seller of taxable material to collect the tax
  authorized by this chapter for the benefit of the county.
         (b)  A seller required to collect the tax shall add the tax to
  the price of the taxable material and the tax is a part of the price
  of the taxable material, a debt owed to the seller of the taxable
  material by the person who purchased the taxable material, and
  recoverable at law in the same manner as the price of the taxable
  material.
         Sec. 329.102.  COLLECTION PROCEDURES. (a) A person
  required to collect a tax authorized by this chapter shall report
  and remit the tax to the county as provided by the county imposing
  the tax.
         (b)  A county by order may prescribe penalties, including
  interest charges, for failure to keep records required by the
  county, to report when required, or to remit the tax when due. The
  attorney acting for the county may bring suit against a person who
  fails to collect the tax and to remit the tax to the county as
  required.
         (c)  A county by order may permit a person who is required to
  collect a tax under this chapter to retain a percentage of the
  amount collected and required to be reported and remitted as
  reimbursement to the person for the costs of collecting the tax.
  The county may provide that the person may retain the amount only if
  the person files reports and remits the tax as required by the
  county.
  SUBCHAPTER D. CLASSIFICATION OF TAX AND USE OF REVENUE
         Sec. 329.151.  NOT OCCUPATION TAX. The tax authorized by
  this chapter is not an occupation tax on the person that mines the
  taxable material or on the seller of the taxable material.
         Sec. 329.152.  USE OF REVENUE. A county may use revenue from
  the tax authorized by this chapter only to operate, maintain, and
  improve county roads.
         SECTION 2.  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, 2017.
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