Bill Text: TX HB4467 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to imposing a tax on certain revenue derived from digital advertising services.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-29 - Referred to Ways & Means [HB4467 Detail]
Download: Texas-2021-HB4467-Introduced.html
| 87R10860 BEF-D | ||
| By: Martinez Fischer | H.B. No. 4467 | |
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| relating to imposing a tax on certain revenue derived from digital | ||
| advertising services. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle G, Title 2, Tax Code, is amended by | ||
| adding Chapter 184 to read as follows: | ||
| CHAPTER 184. DIGITAL ADVERTISING TAX | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 184.0001. DEFINITIONS. In this chapter: | ||
| (1) "Assessable base" means the portion of gross | ||
| revenue derived from digital advertising services in this state. | ||
| (2) "Digital advertising services" means | ||
| advertisement services on a digital interface. The term includes | ||
| advertisements in the form of banner advertising, search engine | ||
| advertising, interstitial advertising, and other comparable | ||
| advertising services. | ||
| (3) "Digital interface" means any type of software, | ||
| including any part of an Internet website or application that a user | ||
| is able to access. | ||
| (4) "Gross revenue" means income or revenue from all | ||
| sources located anywhere in the world, before any expenses or | ||
| taxes, computed according to generally accepted accounting | ||
| principles. | ||
| (5) "Person" does not include an individual. | ||
| (6) "Reporting period" means the calendar year on | ||
| which a report is based. | ||
| (7) "User" means a person or individual who accesses a | ||
| digital interface with a device. | ||
| Sec. 184.0002. RULES. (a) The comptroller shall adopt | ||
| rules necessary to implement, administer, and enforce this chapter. | ||
| (b) The rules must include a method for determining the | ||
| portion of a person's gross revenue that is derived from digital | ||
| advertising services in this state. The method may include formulas | ||
| for apportioning any part of a person's gross revenue to this state | ||
| based on any person or individual's nexus with this state for the | ||
| purpose of taxation. | ||
| (c) The rules may include a requirement that a person make | ||
| periodic reports during a reporting period and pay estimated tax | ||
| amounts for each report. | ||
| SUBCHAPTER B. TAX | ||
| Sec. 184.0051. TAX IMPOSED. A tax is imposed on a person | ||
| whose: | ||
| (1) assessable base for the reporting period is at | ||
| least $1 million; and | ||
| (2) gross revenue for the reporting period is at least | ||
| $100 million. | ||
| Sec. 184.0052. TAX RATES. The rate of the tax imposed under | ||
| this chapter is: | ||
| (1) 2.5 percent of a person's assessable base for the | ||
| reporting period if the person's gross revenue for the reporting | ||
| period is at least $100 million but not more than $1 billion; | ||
| (2) five percent of a person's assessable base for the | ||
| reporting period if the person's gross revenue for the reporting | ||
| period is more than $1 billion but not more than $5 billion; | ||
| (3) 7.5 percent of a person's assessable base for the | ||
| reporting period if the person's gross revenue for the reporting | ||
| period is more than $5 billion but not more than $15 billion; and | ||
| (4) 10 percent of a person's assessable base for the | ||
| reporting period if the person's gross revenue for the reporting | ||
| period is more than $15 billion. | ||
| Sec. 184.0053. BUSINESS ON WHICH TAX IS BASED. (a) The tax | ||
| is based on gross revenue from business done during the reporting | ||
| period. | ||
| (b) The comptroller shall adopt rules for determining when | ||
| business is done. To the extent practicable, the comptroller shall | ||
| consider business to be done when revenue derived from that | ||
| business is recognized by a person according to generally accepted | ||
| accounting principles. | ||
| SUBCHAPTER C. RECORDS, REPORTS, AND PAYMENTS | ||
| Sec. 184.0101. RECORDS. (a) A person on whom the tax is or | ||
| may be imposed shall keep records as required by comptroller rule. | ||
| (b) The comptroller may investigate or examine any records | ||
| of a person to determine the person's liability for the tax. | ||
| Sec. 184.0102. REPORT AND PAYMENT. (a) A person on whom the | ||
| tax is imposed shall file a report with the comptroller on or before | ||
| April 15 following the end of a reporting period. The report must be | ||
| on a form and contain the information required by the comptroller. | ||
| (b) Payment of the tax for a reporting period is due when the | ||
| report is due. The person shall pay the tax to the comptroller. | ||
| SUBCHAPTER D. DISPOSITION OF TAX PROCEEDS | ||
| Sec. 184.0151. ALLOCATION AND DEPOSIT OF PROCEEDS. The | ||
| comptroller shall deposit: | ||
| (1) one-fourth of the proceeds from the collection of | ||
| the tax to the credit of the foundation school fund; and | ||
| (2) three-fourths of the proceeds from the collection | ||
| of the tax to the credit of the general revenue fund. | ||
| SECTION 2. (a) Chapter 184, Tax Code, as added by this Act, | ||
| applies only to revenue derived from business done on or after | ||
| January 1, 2022. | ||
| (b) A person is required to file the first report and make | ||
| the first payment under Section 184.0102, Tax Code, as added by this | ||
| Act, on or before April 15, 2023. | ||
| SECTION 3. (a) Except as provided by Subsection (b) of this | ||
| section, this Act takes effect January 1, 2022. | ||
| (b) Section 184.0002, Tax Code, as added by this Act, takes | ||
| effect September 1, 2021. | ||
