Bill Text: TX SB1525 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the application of the sales and use tax to certain property and services.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-10 - Effective immediately [SB1525 Detail]
Download: Texas-2019-SB1525-Enrolled.html
S.B. No. 1525 |
|
||
relating to the application of the sales and use tax to certain | ||
property and services. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 151.0028, Tax Code, is amended by adding | ||
Subsection (c) to read as follows: | ||
(c) "Amusement services" does not include services provided | ||
through coin-operated machines that are operated by the consumer. | ||
SECTION 2. Section 151.0045, Tax Code, is amended to read as | ||
follows: | ||
Sec. 151.0045. "PERSONAL SERVICES". "Personal services" | ||
means those personal services listed as personal services under | ||
Group 721, Major Group 72 of the Standard Industrial Classification | ||
Manual, 1972, and includes massage parlors, escort services, and | ||
Turkish baths under Group 729 of said manual but does not include | ||
any other services listed under Group 729 unless otherwise covered | ||
under this chapter [ |
||
division of the office on management and budget, office of the | ||
president of the United States. The term does not include services | ||
provided through coin-operated machines that are operated by the | ||
consumer. | ||
SECTION 3. Section 151.006, Tax Code, is amended by | ||
amending Subsections (a) and (c) and adding Subsection (e) 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 [ |
||
151.010 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; | ||
(4) a taxable service performed on tangible personal | ||
property that is held for sale by the purchaser of the taxable | ||
service; or | ||
(5) [ |
||
personal property or a taxable service to a purchaser who acquires | ||
the property or service for the purpose of transferring it as an | ||
integral part of performing a contract, or a subcontract of a | ||
contract, for the sale, other than the lease or rental, of tangible | ||
personal property with an entity or organization exempted from the | ||
taxes imposed by this chapter under Section 151.309 or 151.310 [ |
||
|
||
(A) allocates and bills to the contract the cost | ||
of the property or service as a direct or indirect cost; and | ||
(B) transfers title to the property to the exempt | ||
entity or organization [ |
||
any applicable [ |
||
(c) 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 not | ||
listed as a taxable service under Section 151.0101 [ |
||
|
||
transfers to the service provider's customer, unless the tangible | ||
personal property or taxable service is purchased for the purpose | ||
of performing [ |
||
a subcontract of a contract, for a service, including a taxable | ||
service under Section 151.0101, with any branch of the Department | ||
of Defense, Department of Homeland Security, Department of Energy, | ||
National Aeronautics and Space Administration, Central | ||
Intelligence Agency, National Security Agency, National Oceanic | ||
and Atmospheric Administration, or National Reconnaissance Office | ||
to the extent allocated and billed to the contract with the federal | ||
government. | ||
(e) A sale for resale does not include the sale of tangible | ||
personal property to a purchaser who acquires the property for the | ||
purpose of using, consuming, or expending it in, or incorporating | ||
it into, an oil or gas well in the performance of an oil well service | ||
taxable under Chapter 191. | ||
SECTION 4. Section 151.338, Tax Code, is amended to read as | ||
follows: | ||
Sec. 151.338. ENVIRONMENT AND CONSERVATION SERVICES. | ||
(a) Subject to Subsections (b) and (c), labor to [ |
||
|
||
|
||
exempted from the taxes imposed by [ |
||
chapter if: | ||
(1) the repair, remodeling, maintenance, or | ||
restoration is required by statute, ordinance, order, rule, or | ||
regulation of any commission, agency, court, or political, | ||
governmental, or quasi-governmental entity in order to protect the | ||
environment or to conserve energy; and | ||
(2) the charge for the labor is itemized separately | ||
from the charge for materials furnished. | ||
(b) The exemption provided by Subsection (a) does not apply | ||
to the charge for materials furnished by the service provider to the | ||
purchaser as part of the service. | ||
(c) Sixty-five percent of a lump-sum charge for labor and | ||
materials to repair, remodel, maintain, or restore tangible | ||
personal property is exempted from the taxes imposed by this | ||
chapter if: | ||
(1) the repair, remodeling, maintenance, or | ||
restoration is required under the circumstances described by | ||
Subsection (a)(1); and | ||
(2) the labor and materials are purchased for a health | ||
care facility, as defined by Section 108.002, Health and Safety | ||
Code, or for an oncology center. | ||
SECTION 5. Section 151.335, Tax Code, is repealed. | ||
SECTION 6. The amendments made by this Act are a | ||
clarification of existing law and do not imply that existing law may | ||
be construed as inconsistent with the law as amended by this Act. | ||
SECTION 7. 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 October 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1525 passed the Senate on | ||
April 26, 2019, by the following vote: Yeas 30, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1525 passed the House on | ||
May 21, 2019, by the following vote: Yeas 146, Nays 0, | ||
one present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |