Bill Text: TX HB744 | 2011-2012 | 82nd Legislature | Introduced

Texas House Bill 744 (Prior Session Legislation)

Introduced

Bill Title: Relating to exemptions from the sales tax for certain business entities during a limited period.

Sponsorship: Bipartisan Bill

Status: (Introduced - Dead) 2011-03-07 - No action taken in committee [HB744 Detail]

Download: Texas-2011-HB744-Introduced.html

	82R2400 KLA-D

	By: Raymond	H.B. No. 744



	A BILL TO BE ENTITLED
	AN ACT
	relating to exemptions from the sales tax for certain business
	entities during a limited period.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
	by adding Section 151.3411 to read as follows:
	Sec. 151.3411. COMPUTER EQUIPMENT SOLD TO OR USED BY
	ELIGIBLE BUSINESS ENTITIES DURING CERTAIN PERIODS. (a) In this
	section:
	(1) "Computer equipment" means a desktop or notebook
	computer and related equipment, including:
	(A) a computer monitor or other display device;
	(B) a printer, which may also be capable of
	performing scanning, photocopying, or facsimile functions; and
	(C) other hardware or networking equipment for
	computers, such as adapters, modems, servers, routers, and other
	equipment associated with Internet access.
	(2) "County average weekly wage" means the average
	weekly wage in a county for all jobs during the most recent four
	quarterly periods for which data is available, as computed by the
	Texas Workforce Commission, at the time a small business creates a
	job used to qualify for an exemption under this section.
	(3) "Eligible small business" means a small business
	that meets the qualifications prescribed by Subsection (c).
	(4) "Qualifying job" means a permanent full-time job
	the weekly wage for which exceeds the county average weekly wage in
	the county in which the job is based.
	(5) "Small business" means a corporation,
	partnership, sole proprietorship, or other legal entity that
	employs fewer than 100 permanent full-time employees, including the
	employees employed in the qualified jobs created to qualify for an
	exemption under this section.
	(b) The sale, lease, or rental to or use by an eligible small
	business of a taxable item that is computer equipment is exempted
	from the taxes imposed by this chapter and the business may claim a
	refund or credit as provided by this section if:
	(1) the item:
	(A) is for the exclusive use and benefit of the
	business;
	(B) is necessary for the operation of the
	business; and
	(C) replaces computer equipment with respect to
	the sale, lease, rental, or use of which the business paid the tax
	imposed by this chapter; and
	(2) the sale, lease, rental, or use of the item occurs
	not later than the fifth anniversary of the date the business
	initially qualifies as an eligible small business.
	(c) A small business is eligible for the exemption provided
	by Subsection (b) from the tax imposed by this chapter if the
	business:
	(1) is engaged in business in this state; and
	(2) on or after September 1, 2011:
	(A) creates at least 25 qualifying jobs in the
	county in which the headquarters or other main office of the
	business is located;
	(B) invests at least $10 million in capital
	investments in this state; and
	(C) purchases, leases, rents, or uses computer
	equipment for the exclusive use and benefit of the business that is
	necessary for the operation of the business and pays the tax imposed
	by this chapter on that purchase, lease, rental, or use.
	(d) An eligible small business entitled to a credit or
	refund under this section may elect to receive either a credit or a
	refund. A business that elects to receive a credit must claim the
	credit on the return for the period that ends not later than the
	first anniversary of the date the taxable event occurred. A
	business that elects to receive a refund must apply to the
	comptroller for the refund before or during the calendar year
	following the year in which the tax was paid.
	(e) The comptroller may require a small business that claims
	a credit or applies for a refund under this section to provide to
	the comptroller additional documentation necessary to establish
	that the business is an eligible small business.
	(f) A refund under this section is not a refund of taxes
	erroneously collected, and Section 111.064 does not apply.
	(g) The comptroller shall adopt rules necessary to
	implement this section, including rules relating to the:
	(1) qualification of a small business for an exemption
	under this section;
	(2) determination of the date a small business
	initially qualifies as an eligible small business; and
	(3) circumstances under which computer equipment is
	considered to replace other computer equipment.
	SECTION 2. 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 3. This Act takes effect September 1, 2011.