Bill Text: TX HB3767 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Relating to the exemption from the sales and use tax for tangible personal property or a taxable service that is resold or otherwise transferred.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-03-23 - Referred to Appropriations [HB3767 Detail]

Download: Texas-2011-HB3767-Introduced.html
  82R3896 ALL-F
 
  By: Pitts H.B. No. 3767
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from the sales and use tax for tangible
  personal property or a taxable service that is resold or otherwise
  transferred.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 151.006, Tax Code, is amended by
  amending Subsection (a) and adding Subsection (c) to read as
  follows:
         (a)  "Sale for resale" means a sale of:
               (1)  tangible personal property or a taxable service to
  a purchaser who acquires the property or service for the purpose of
  reselling it with or as a taxable item in the United States of
  America or a possession or territory of the United States of America
  or in the United Mexican States in the normal course of business in
  the form or condition in which it is acquired or as an attachment to
  or integral part of other tangible personal property or taxable
  service;
               (2)  tangible personal property to a purchaser for the
  sole purpose of the purchaser's leasing or renting it in the United
  States of America or a possession or territory of the United States
  of America or in the United Mexican States in the normal course of
  business to another person, but not if incidental to the leasing or
  renting of real estate;
               (3)  tangible personal property to a purchaser who
  acquires the property for the purpose of transferring it in the
  United States of America or a possession or territory of the United
  States of America or in the United Mexican States as an integral
  part of a taxable service; [or]
               (4)  a taxable service performed on tangible personal
  property that is held for sale by the purchaser of the taxable
  service; or
               (5)  tangible personal property to a purchaser who
  acquires the property for the sole purpose of transferring it as an
  integral part of performing a contract with the federal government
  only if the purchaser:
                     (A)  allocates to the contract the cost of the
  property as a direct or indirect cost;
                     (B)  bills the cost of the property to the federal
  government for reimbursement; and
                     (C)  transfers title to the property to the
  federal government under the contract and applicable federal
  acquisition regulations.
         (c)  Except as otherwise provided by this chapter, a sale for
  resale does not include the sale of tangible personal property or a
  taxable service to a purchaser who acquires the property or service
  for the purpose of performing a service that is not subject to
  taxation under this chapter, regardless of whether title transfers
  to the purchaser's customer.
         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, 2011.
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