Bill Text: TX SB1711 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to state and local taxes and fees; imposing a tax; imposing fees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-26 - Referred to Finance [SB1711 Detail]
Download: Texas-2021-SB1711-Introduced.html
87R11926 SMT/CJC/GCB/MP-D | ||
By: Springer | S.B. No. 1711 |
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relating to state and local taxes and fees; imposing a tax; imposing | ||
fees. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
ARTICLE 1. PROVISIONS RELATED TO DECREASING PROPERTY TAX LIABILITY | ||
SECTION 1.01. Section 48.255(b), Education Code, is amended | ||
to read as follows: | ||
(b) The state compression percentage is the lower of: | ||
(1) the following compression percentages, based on | ||
the district's maintenance and operations tax for the 2020 tax | ||
year: | ||
(A) if a district's maintenance and operations | ||
tax is equal to or greater than $1.00 per hundred dollars of | ||
valuation, 60 percent; | ||
(B) if a district's maintenance and operations | ||
tax is equal to or greater than $0.90 but less than $1.00 per | ||
hundred dollars of valuation, a compression percentage determined | ||
by the commissioner for that district that will compress the | ||
district's maintenance and operations tax to $0.90 per hundred | ||
dollars of valuation; or | ||
(C) if a district's maintenance and operations | ||
tax is $0.90 or less per hundred dollars of valuation, 66.67 | ||
percent; or | ||
(2) a compression percentage established by | ||
appropriation for a school year [ |
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SECTION 1.02. Section 403.302(d), Government Code, is | ||
amended to read as follows: | ||
(d) For the purposes of this section, "taxable value" means | ||
the market value of all taxable property less: | ||
(1) the total dollar amount of any residence homestead | ||
exemptions lawfully granted under Section 11.13(b), [ |
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(s), Tax Code, in the year that is the subject of the study for each | ||
school district; | ||
(2) one-half of the total dollar amount of any | ||
residence homestead exemptions granted under Section 11.13(n), Tax | ||
Code, in the year that is the subject of the study for each school | ||
district; | ||
(3) the total dollar amount of any exemptions granted | ||
before May 31, 1993, within a reinvestment zone under agreements | ||
authorized by Chapter 312, Tax Code; | ||
(4) subject to Subsection (e), the total dollar amount | ||
of any captured appraised value of property that: | ||
(A) is within a reinvestment zone created on or | ||
before May 31, 1999, or is proposed to be included within the | ||
boundaries of a reinvestment zone as the boundaries of the zone and | ||
the proposed portion of tax increment paid into the tax increment | ||
fund by a school district are described in a written notification | ||
provided by the municipality or the board of directors of the zone | ||
to the governing bodies of the other taxing units in the manner | ||
provided by former Section 311.003(e), Tax Code, before May 31, | ||
1999, and within the boundaries of the zone as those boundaries | ||
existed on September 1, 1999, including subsequent improvements to | ||
the property regardless of when made; | ||
(B) generates taxes paid into a tax increment | ||
fund created under Chapter 311, Tax Code, under a reinvestment zone | ||
financing plan approved under Section 311.011(d), Tax Code, on or | ||
before September 1, 1999; and | ||
(C) is eligible for tax increment financing under | ||
Chapter 311, Tax Code; | ||
(5) the total dollar amount of any captured appraised | ||
value of property that: | ||
(A) is within a reinvestment zone: | ||
(i) created on or before December 31, 2008, | ||
by a municipality with a population of less than 18,000; and | ||
(ii) the project plan for which includes | ||
the alteration, remodeling, repair, or reconstruction of a | ||
structure that is included on the National Register of Historic | ||
Places and requires that a portion of the tax increment of the zone | ||
be used for the improvement or construction of related facilities | ||
or for affordable housing; | ||
(B) generates school district taxes that are paid | ||
into a tax increment fund created under Chapter 311, Tax Code; and | ||
(C) is eligible for tax increment financing under | ||
Chapter 311, Tax Code; | ||
(6) the total dollar amount of any exemptions granted | ||
under Section 11.251 or 11.253, Tax Code; | ||
(7) the difference between the comptroller's estimate | ||
of the market value and the productivity value of land that | ||
qualifies for appraisal on the basis of its productive capacity, | ||
except that the productivity value estimated by the comptroller may | ||
not exceed the fair market value of the land; | ||
(8) the portion of the appraised value of residence | ||
homesteads of individuals who receive a tax limitation under | ||
Section 11.26, Tax Code, on which school district taxes are not | ||
imposed in the year that is the subject of the study, calculated as | ||
if the residence homesteads were appraised at the full value | ||
required by law; | ||
(9) a portion of the market value of property not | ||
otherwise fully taxable by the district at market value because of | ||
action required by statute or the constitution of this state, other | ||
than Section 11.311, Tax Code, that, if the tax rate adopted by the | ||
district is applied to it, produces an amount equal to the | ||
difference between the tax that the district would have imposed on | ||
the property if the property were fully taxable at market value and | ||
the tax that the district is actually authorized to impose on the | ||
property, if this subsection does not otherwise require that | ||
portion to be deducted; | ||
(10) the market value of all tangible personal | ||
property, other than manufactured homes, owned by a family or | ||
individual and not held or used for the production of income; | ||
(11) the appraised value of property the collection of | ||
delinquent taxes on which is deferred under Section 33.06, Tax | ||
Code; | ||
(12) the portion of the appraised value of property | ||
the collection of delinquent taxes on which is deferred under | ||
Section 33.065, Tax Code; | ||
(13) the amount by which the market value of a | ||
residence homestead to which Section 23.23, Tax Code, applies | ||
exceeds the appraised value of that property as calculated under | ||
that section; and | ||
(14) the total dollar amount of any exemptions granted | ||
under Section 11.35, Tax Code. | ||
SECTION 1.03. Section 11.13, Tax Code, is amended by | ||
amending Subsection (i) and adding Subsections (s) and (t) to read | ||
as follows: | ||
(i) The assessor and collector for a taxing unit may | ||
disregard the exemptions authorized by Subsection (b), (c), (d), | ||
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pledged for payment of debt without deducting the amount of the | ||
exemption if: | ||
(1) prior to adoption of the exemption, the unit | ||
pledged the taxes for the payment of a debt; and | ||
(2) granting the exemption would impair the obligation | ||
of the contract creating the debt. | ||
(s) In addition to any other exemptions provided by this | ||
section, an individual is entitled to an exemption from taxation by | ||
a school district of a portion of the appraised value of the | ||
individual's residence homestead in an amount equal to 150 percent | ||
of the median appraised value of all single family residences in | ||
this state in the preceding year as determined by the comptroller | ||
under Subsection (t). | ||
(t) Not later than January 1 of each year, the comptroller | ||
shall determine the median appraised value of all single-family | ||
residences in this state in the preceding year and publish that | ||
value in the Texas Register. | ||
SECTION 1.04. Section 48.255(c), Education Code, is | ||
repealed. | ||
SECTION 1.05. This article applies only to an ad valorem tax | ||
year that begins on or after the effective date of this Act. | ||
ARTICLE 2. PROVISIONS RELATED TO OTHER FEE AND TAX REVENUE | ||
SECTION 2.01. Subchapter A, Chapter 151, Tax Code, is | ||
amended by adding Section 151.0025 to read as follows: | ||
Sec. 151.0025. "ADVERTISING SERVICES". "Advertising | ||
services" means: | ||
(1) the provision of advertising space and time, | ||
including television and radio time, magazine space, newspaper | ||
space, and billboard space; or | ||
(2) the development of an advertising campaign or the | ||
content of an advertisement, including a television, radio, print, | ||
or Internet advertisement. | ||
SECTION 2.02. Sections 151.0028(a) and (b), Tax Code, are | ||
amended to read as follows: | ||
(a) "Amusement services" means the provision of amusement, | ||
entertainment, tanning, or recreation, but does not include the | ||
provision of educational or health services if prescribed by a | ||
licensed practitioner of the healing arts for the primary purpose | ||
of education or health maintenance or improvement. | ||
(b) "Amusement services" includes membership in a private | ||
club or organization that provides entertainment, tanning, | ||
recreational, sports, dining, or social facilities to its members. | ||
SECTION 2.03. Subchapter A, Chapter 151, Tax Code, is | ||
amended by adding Sections 151.0029, 151.00295, 151.00352, | ||
151.00375, and 151.00378 to read as follows: | ||
Sec. 151.0029. "AUTOMOTIVE SERVICES". "Automotive | ||
services" means services performed on or to a motor vehicle, | ||
including washing, waxing, painting, lubrication, rustproofing, | ||
and undercoating. | ||
Sec. 151.00295. "BARBERING OR COSMETOLOGY SERVICES". | ||
"Barbering or cosmetology services" means acts or activities that | ||
constitute "barbering," as that term is defined by Section | ||
1601.002, Occupations Code, or "cosmetology," as that term is | ||
defined by Section 1602.002, Occupations Code, and any other act or | ||
activity provided to a client of a person who holds a license, | ||
certificate, permit, or other credential issued under Chapter 1601, | ||
1602, or 1603, Occupations Code, authorizing the person to practice | ||
or perform the activity. | ||
Sec. 151.00352. "DATING SERVICES". "Dating services" means | ||
services to arrange romantic or social dates between individuals, | ||
to offer potential romantic or social dates to individuals, or to | ||
allow individuals to contact other individuals for the purpose of | ||
arranging romantic or social dates. | ||
Sec. 151.00375. "FUNERAL SERVICES". "Funeral services" | ||
means acts or activities that constitute "funeral directing," as | ||
that term is defined by Section 651.001, Occupations Code, and | ||
services provided by a funeral director, embalmer, or funeral | ||
establishment, as those terms are defined by that section, or by an | ||
employee of one of those persons. | ||
Sec. 151.00378. "HUNTING OR FISHING GUIDE SERVICES". | ||
"Hunting or fishing guide services" means guiding a person who is | ||
hunting or fishing. | ||
SECTION 2.04. The heading to Section 151.0038, Tax Code, is | ||
amended to read as follows: | ||
Sec. 151.0038. "INFORMATION SERVICES" [ |
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SECTION 2.05. Section 151.0038(b), Tax Code, is amended to | ||
read as follows: | ||
(b) In this section, "newspaper" means a publication that is | ||
printed on newsprint, the average sales price of which for each copy | ||
over a 30-day period does not exceed $3, and that is printed and | ||
distributed at a daily, weekly, or other short interval for the | ||
dissemination of news of a general character and of a general | ||
interest. "Newspaper" does not include a magazine, handbill, | ||
circular, flyer, sales catalog, or similar printed item unless the | ||
printed item is printed for distribution as a part of a newspaper | ||
and is actually distributed as a part of a newspaper. For the | ||
purposes of this section, an advertisement is news of a general | ||
character and of a general interest. Notwithstanding any other | ||
provision of this subsection, "newspaper" includes: | ||
(1) a publication containing articles and essays of | ||
general interest by various writers and advertisements that is | ||
produced for the operator of a licensed and certified carrier of | ||
persons and distributed by the operator to its customers during | ||
their travel on the carrier; and | ||
(2) a publication for the dissemination of news of a | ||
general character and of a general interest that is printed on | ||
newsprint and distributed to the general public free of charge at a | ||
daily, weekly, or other short interval [ |
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SECTION 2.06. Subchapter A, Chapter 151, Tax Code, is | ||
amended by adding Sections 151.00391, 151.00425, 151.0044, and | ||
151.00442 to read as follows: | ||
Sec. 151.00391. "INTERIOR DESIGN OR INTERIOR DECORATING | ||
SERVICES". "Interior design or interior decorating services" means | ||
an act or activity provided by a person who represents that the | ||
person is a "registered interior designer" under Section 1053.151, | ||
Occupations Code, in connection with the act or activity or the | ||
selection or provision of advice regarding the selection of | ||
furnishings, materials, or finishing for a residential or | ||
commercial space. | ||
Sec. 151.00425. "MASSAGE THERAPY SERVICES". "Massage | ||
therapy services" means acts or activities that constitute "massage | ||
therapy," as that term is defined by Section 455.001, Occupations | ||
Code, and any other acts or activities performed for a massage | ||
therapist's client in relation to massage therapy. | ||
Sec. 151.0044. "PACKING SERVICES". "Packing services" | ||
means packing, crating, or wrapping. The term includes gift and | ||
package wrapping. | ||
Sec. 151.00442. "PERSONAL INSTRUCTION SERVICES". "Personal | ||
instruction services" means coaching or instruction in an | ||
individual skill, including dance, golf, or tennis. | ||
SECTION 2.07. 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, prepared by the statistical policy division of | ||
the office on management and budget, office of the president of the | ||
United States. [ |
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SECTION 2.08. Section 151.0047, Tax Code, is amended to | ||
read as follows: | ||
Sec. 151.0047. "REAL PROPERTY CONSTRUCTION SERVICES" | ||
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services [ |
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restoration, remodeling, or modification of an improvement to real | ||
property [ |
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SECTION 2.09. Section 151.006(a), Tax Code, is amended 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 as a taxable item as defined by Section 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, other than a transport service, | ||
performed on tangible personal property that is held for sale by the | ||
purchaser of the taxable service; or | ||
(5) tangible 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 only if the purchaser: | ||
(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 under the contract and any applicable | ||
acquisition regulations. | ||
SECTION 2.10. Section 151.0101(a), Tax Code, is amended to | ||
read as follows: | ||
(a) "Taxable services" means: | ||
(1) amusement services; | ||
(2) cable television services; | ||
(3) personal services; | ||
(4) motor vehicle parking and storage services; | ||
(5) the repair, remodeling, maintenance, and | ||
restoration of tangible personal property, except: | ||
(A) aircraft; | ||
(B) a ship, boat, or other vessel, other than: | ||
(i) a taxable boat or motor as defined by | ||
Section 160.001; | ||
(ii) a sports fishing boat; or | ||
(iii) any other vessel used for pleasure; | ||
and | ||
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restoration of a computer program, including its development and | ||
modification, not sold by the person performing the repair, | ||
maintenance, creation, or restoration service; | ||
(6) telecommunications services; | ||
(7) credit reporting services; | ||
(8) debt collection services; | ||
(9) insurance services; | ||
(10) information services; | ||
(11) real property services; | ||
(12) data processing services; | ||
(13) real property construction services, except to | ||
the extent prohibited by Section 29, Article VIII, Texas | ||
Constitution [ |
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(14) security services; | ||
(15) telephone answering services; | ||
(16) Internet access service; [ |
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(17) a sale by a transmission and distribution | ||
utility, as defined in Section 31.002, Utilities Code, of | ||
transmission or delivery of service directly to an electricity | ||
end-use customer whose consumption of electricity is subject to | ||
taxation under this chapter; | ||
(18) advertising services; | ||
(19) automotive services; | ||
(20) barbering or cosmetology services; | ||
(21) dating services; | ||
(22) funeral services; | ||
(23) hunting or fishing guide services; | ||
(24) interior design or interior decorating services; | ||
(25) massage therapy services; | ||
(26) packing services; | ||
(27) personal instruction services; | ||
(28) transport services; and | ||
(29) veterinary services. | ||
SECTION 2.11. Subchapter A, Chapter 151, Tax Code, is | ||
amended by adding Sections 151.0108 and 151.013 to read as follows: | ||
Sec. 151.0108. "TRANSPORT SERVICES". "Transport services" | ||
means private mail or package delivery or courier service sold to a | ||
person in this state. | ||
Sec. 151.013. "VETERINARY SERVICES". "Veterinary | ||
services" means an act or activity constituting the "practice of | ||
veterinary medicine," as that term is defined by Section 801.002, | ||
Occupations Code, and any other act or activity provided to a | ||
veterinarian's client in relation to the practice of veterinary | ||
medicine. The term also includes: | ||
(1) prescribed medications, artificial insemination, | ||
breeding services, boarding, and training provided by a | ||
veterinarian or a person employed by a veterinarian; and | ||
(2) medical tests performed on an animal or on tissue, | ||
fluids, or other substances removed from an animal in connection | ||
with diagnosis or treatment. | ||
SECTION 2.12. Section 151.1551(a), Tax Code, is amended to | ||
read as follows: | ||
(a) This section applies to an exemption provided by: | ||
(1) Section 151.316(a)(6), (7), (8), (10), (11), (12), | ||
or (14); | ||
(2) Section 151.316(b) for tangible personal property | ||
used in the production of agricultural products for sale; | ||
(3) Section 151.3162(b) for tangible personal | ||
property used in the production of timber for sale; | ||
(4) Sections 151.317(a)(4) and (10) [ |
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and | ||
(5) Section 151.3111 for services performed on | ||
tangible personal property exempted under Section 151.316(a)(6), | ||
(7), (8), (10), (11), or (12), 151.316(b), or 151.3162(b). | ||
SECTION 2.13. Section 151.313(a), Tax Code, is amended to | ||
read as follows: | ||
(a) The following items are exempted from the taxes imposed | ||
by this chapter: | ||
(1) a drug or medicine, other than insulin, if | ||
prescribed or dispensed for a human or animal by a licensed | ||
practitioner of the healing arts; | ||
(2) insulin; | ||
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(4) [ |
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orthopedic, dental, or prosthetic device; ileostomy, colostomy, or | ||
ileal bladder appliance; or supplies or replacement parts for the | ||
listed items; | ||
(5) [ |
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related supplies specifically designed for those products, if | ||
dispensed or prescribed by a licensed practitioner of the healing | ||
arts, when those items are purchased and used by an individual for | ||
whom the items listed in this subdivision were dispensed or | ||
prescribed; | ||
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supplies, if dispensed or prescribed by an ophthalmologist or | ||
optometrist; | ||
(7) [ |
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equipment used by the deaf for the purpose of enabling the deaf to | ||
communicate through the use of an ordinary telephone and all | ||
materials, paper, and printing ribbons used in that equipment; | ||
(8) [ |
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braille paper and braille electronic equipment that connects to | ||
computer equipment, and the necessary adaptive devices and adaptive | ||
computer software; | ||
(9) [ |
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for use by the blind to enable them to function more independently: | ||
a slate and stylus, print enlarger, light probe, magnifier, white | ||
cane, talking clock, large print terminal, talking terminal, or | ||
harness for guide dog; | ||
(10) [ |
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(11) [ |
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(12) [ |
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facilitate independent eating if purchased for use by a person, | ||
including a person who is elderly or physically disabled, has had a | ||
stroke, or is a burn victim, who does not have full use or control of | ||
the person's hands or arms; | ||
(13) [ |
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supplement; and | ||
(14) [ |
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replacement parts designed or intended to be used in the diagnosis | ||
or treatment of humans. | ||
SECTION 2.14. Sections 151.314(b), (c), (c-2), (c-3), and | ||
(d), Tax Code, are amended to read as follows: | ||
(b) "Food products" shall include, except as otherwise | ||
provided herein, but shall not be limited to cereals and cereal | ||
products; milk and milk products[ |
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oleomargarine; meat and meat products; poultry and poultry | ||
products; fish and fish products; eggs and egg products; vegetables | ||
and vegetable products; fruit and fruit products; spices, | ||
condiments, and salt; sugar and sugar products; coffee and coffee | ||
substitutes; tea; cocoa products; [ |
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of the above. | ||
(c) "Food products" shall not include: | ||
(1) drugs, medicines, tonics, vitamins, dietary | ||
supplements, and medicinal preparations in any form; | ||
(2) carbonated and noncarbonated packaged soft | ||
drinks, which are nonalcoholic beverages that contain natural or | ||
artificial sweeteners; | ||
(3) ice; [ |
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(4) candy; | ||
(5) bakery items; or | ||
(6) snack items. | ||
(c-2) The exemption provided by Subsection (a) does not | ||
include the following prepared food: | ||
(1) [ |
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food products, and drinks, including meals, milk and milk products, | ||
fruit and fruit products, sandwiches, salads, processed meats and | ||
seafoods, and vegetable juice[ |
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restaurants, lunch counters, cafeterias, delis, vending machines, | ||
hotels, or like places of business or sold ready for immediate | ||
consumption from pushcarts, motor vehicles, or any other form of | ||
vehicle; | ||
(2) [ |
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sold in a heated state or heated by the seller; or | ||
(3) two or more food ingredients mixed or combined by | ||
the seller for sale as a single item, including items that are sold | ||
in an unheated state by weight or volume as a single item, but not | ||
including food that is only cut, repackaged, or pasteurized by the | ||
seller. | ||
(c-3) The exemption provided by Subsection (a) includes[ |
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containing these raw animal foods, that require cooking by the | ||
consumer as recommended by the Food and Drug Administration in | ||
Chapter 3, Section 401.11 of its Food Code to prevent food-borne | ||
illness and any other food that requires cooking by the consumer | ||
before the food is edible. | ||
(d) Food products, meals, soft drinks, bakery items, snack | ||
items, and candy for human consumption are exempted from the taxes | ||
imposed by this chapter if: | ||
(1) served by a public or private school, school | ||
district, student organization, booster club or other school | ||
support organization, or parent-teacher association under an | ||
agreement with the proper school authorities in an elementary or | ||
secondary school during the regular school day or by a | ||
parent-teacher association during a fund-raising sale the proceeds | ||
of which do not benefit an individual; | ||
(2) sold by a church or at a function of a church; | ||
(3) served to a patient or inmate of a hospital or | ||
other institution licensed by the state for the care of humans; | ||
(4) served to a permanent resident of a retirement | ||
facility which provides permanent housing and residence to | ||
individuals, a majority of whom are 60 years or older; or | ||
(5) sold during an event sponsored or sanctioned by an | ||
elementary or secondary school or school district at a concession | ||
stand operated by a booster club or other school support | ||
organization formed to support the school or school district, but | ||
only if the proceeds from the sales benefit the school or school | ||
district. | ||
SECTION 2.15. Section 151.314(e), Tax Code, as amended by | ||
Chapters 209 (H.B. 2424) and 1310 (H.B. 2425), Acts of the 78th | ||
Legislature, 2003, is reenacted and amended to read as follows: | ||
(e) Food products, candy, snack items, bakery items, and | ||
soft drinks are exempted from the taxes imposed by this chapter if | ||
sold at an exempt sale qualifying under this subsection or if stored | ||
or used by the purchaser of the item at the exempt sale. A sale is | ||
exempted under this subsection if[ |
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a nonprofit organization devoted to the exclusive purpose of | ||
education or religious or physical training or by a group | ||
associated with a public or private elementary or secondary school | ||
and: | ||
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drive sponsored by the organization or group; and | ||
(2) [ |
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organization or group for its exclusive use. | ||
SECTION 2.16. Sections 151.317(a) and (d), Tax Code, are | ||
amended to read as follows: | ||
(a) Subject to Sections 151.1551, 151.359, and 151.3595 and | ||
Subsection (d) of this section, gas and electricity are exempted | ||
from the taxes imposed by this chapter when sold for: | ||
(1) [ |
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151.318 or 151.3185 by a person processing tangible personal | ||
property for sale as tangible personal property, other than | ||
preparation or storage of prepared food described by Section | ||
151.314(c-2); | ||
(2) [ |
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manufacturing area during the actual manufacturing or processing of | ||
tangible personal property for sale as tangible personal property, | ||
other than preparation or storage of prepared food described by | ||
Section 151.314(c-2); | ||
(3) [ |
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transporting, a material extracted from the earth; | ||
(4) [ |
||
poultry operations and pumping for farm or ranch irrigation; | ||
(5) [ |
||
as electroplating, electrolysis, and cathodic protection; | ||
(6) [ |
||
overhaul, or repair of a jet turbine engine or its parts for a | ||
certificated or licensed carrier of persons or property; | ||
(7) [ |
||
with or on behalf of the United States government or foreign | ||
governments, defense or national security-related electronics, | ||
classified intelligence data processing and handling systems, or | ||
defense-related platform modifications or upgrades; | ||
(8) [ |
||
center project that is certified by the comptroller as a qualifying | ||
data center under Section 151.359 or a qualifying large data center | ||
project under Section 151.3595 in the processing, storage, and | ||
distribution of data; | ||
(9) [ |
||
loss of electricity by an electric utility engaged in the purchase | ||
of electricity for resale; or | ||
(10) [ |
||
pumping for irrigation of timberland. | ||
(d) To qualify for the exemptions in Subsections (a)(1)-(8) | ||
[ |
||
using the gas or electricity in the exempt manner. For purposes of | ||
this subsection, the use of gas or electricity in an exempt manner | ||
by an independent contractor engaged by the purchaser of the gas or | ||
electricity to perform one or more of the exempt activities | ||
identified in Subsections (a)(1)-(8) [ |
||
use by the purchaser of the gas or electricity. | ||
SECTION 2.17. Section 151.350(d), Tax Code, is amended to | ||
read as follows: | ||
(d) In this section, "restore" means: | ||
(1) launder, clean, repair, treat, or apply protective | ||
chemicals to an item, to the extent the service is a personal | ||
service as defined in Section 151.0045; and | ||
(2) repair, restore, or remodel, to the extent the | ||
service is: | ||
(A) considered to be the [ |
||
repair, restoration, [ |
||
improvement to real property under [ |
||
151.0047; or | ||
(B) defined as a taxable service in Section | ||
151.0101(a)(5). | ||
SECTION 2.18. Section 151.401(a), Tax Code, is amended to | ||
read as follows: | ||
(a) The taxes imposed by this chapter are due and payable to | ||
the comptroller on or before the 20th day of the month following the | ||
end of each calendar month unless a taxpayer qualifies as a | ||
quarterly filer under Subsection (b) [ |
||
SECTION 2.19. Section 151.425, Tax Code, is amended to read | ||
as follows: | ||
Sec. 151.425. FORFEITURE OF [ |
||
If a taxpayer fails to file a report required by this chapter when | ||
due or to pay the tax when due, the taxpayer forfeits any claim to a | ||
deduction [ |
||
SECTION 2.20. Section 151.428(c), Tax Code, is amended to | ||
read as follows: | ||
(c) The reporting, collection, refund, and penalty | ||
provisions of this chapter and Subtitle B of this title apply to the | ||
payments required by this section, except that Section [ |
||
151.423 does [ |
||
section. | ||
SECTION 2.21. Section 152.047(a), Tax Code, is amended to | ||
read as follows: | ||
(a) Except as inconsistent with this chapter and rules | ||
adopted under this chapter, the seller of a motor vehicle shall | ||
report and pay the tax imposed on a seller-financed sale to the | ||
comptroller on the seller's receipts from seller-financed sales in | ||
the same manner as the sales tax is reported and paid by a retailer | ||
under Sections 151.401, 151.402, 151.405, 151.406, 151.409, | ||
151.423, [ |
||
SECTION 2.22. Subtitle E, Title 2, Tax Code, is amended by | ||
adding Chapter 165 to read as follows: | ||
CHAPTER 165. TAX ON E-CIGARETTE VAPOR PRODUCTS | ||
Sec. 165.0001. DEFINITIONS. In this chapter: | ||
(1) "E-cigarette" has the meaning assigned by Section | ||
161.081, Health and Safety Code. | ||
(2) "Vapor product" means a consumable nicotine liquid | ||
solution or other material containing nicotine suitable for use in | ||
an e-cigarette. | ||
Sec. 165.0002. E-CIGARETTE VAPOR PRODUCT SALES TAX. (a) A | ||
tax is imposed on each sale of a vapor product in this state. | ||
(b) The tax rate is 10 cents for each milliliter or | ||
fractional part of a milliliter of vapor product sold. | ||
(c) The tax imposed under this section is in addition to the | ||
tax imposed under Subchapter C, Chapter 151. The tax imposed under | ||
this section does not apply to a sale unless the tax imposed under | ||
Subchapter C, Chapter 151, applies to the sale. | ||
Sec. 165.0003. E-CIGARETTE VAPOR PRODUCT USE TAX. (a) A | ||
tax is imposed on the storage, use, or other consumption in this | ||
state of a vapor product purchased from a retailer for storage, use, | ||
or other consumption in this state. | ||
(b) The tax rate is 10 cents for each milliliter or | ||
fractional part of a milliliter of vapor product stored, used, or | ||
otherwise consumed in this state. | ||
(c) The tax imposed under this section is in addition to the | ||
tax imposed under Subchapter D, Chapter 151. The tax imposed under | ||
this section does not apply to the storage, use, or other | ||
consumption of a vapor product unless the tax imposed under | ||
Subchapter D, Chapter 151, applies to the storage, use, or other | ||
consumption. | ||
Sec. 165.0004. APPLICATION OF OTHER PROVISIONS OF CODE. | ||
(a) Except as provided by this chapter: | ||
(1) the taxes imposed under this chapter are | ||
administered, imposed, collected, and enforced in the same manner | ||
as the taxes under Chapter 151 are administered, imposed, | ||
collected, and enforced; and | ||
(2) the provisions of Chapter 151 applicable to the | ||
sales tax imposed under Subchapter C, Chapter 151, and the use tax | ||
imposed under Subchapter D, Chapter 151, apply to the sales and use | ||
taxes imposed under this chapter. | ||
(b) A change in the law relating to the taxation of the sale | ||
or use of a vapor product under Chapter 151 also applies to the | ||
sales or use tax imposed under this chapter. | ||
Sec. 165.0005. REPORTS. (a) A person required to file a | ||
report under Section 151.403 who is also required to collect or pay | ||
a tax under this chapter shall file with the comptroller a report | ||
stating: | ||
(1) for sales tax purposes, the volume of vapor | ||
products sold by the seller during the reporting period; | ||
(2) for use tax purposes, the volume of vapor products | ||
sold by the retailer during the reporting period for storage, use, | ||
or other consumption in this state; | ||
(3) the volume of vapor products subject to the use tax | ||
that were acquired during the reporting period for storage, use, or | ||
other consumption in this state by a purchaser who did not pay the | ||
tax to a retailer; | ||
(4) the amount of the taxes due under this chapter for | ||
the reporting period; and | ||
(5) any other information required by the comptroller. | ||
(b) The report required by this section for a reporting | ||
period is due on the same date that the tax payment for the period is | ||
due. | ||
Sec. 165.0006. RECORDS. A person required to file a report | ||
under Section 151.403 who is also required to collect or pay a tax | ||
under this chapter shall keep a complete record of: | ||
(1) the volume of vapor products sold in this state | ||
during each reporting period; | ||
(2) the volume of vapor products, including the | ||
constituent parts of vapor products, purchased from every source | ||
during each reporting period; | ||
(3) all sales and use taxes, and any money represented | ||
to be sales or use tax, collected during each reporting period; and | ||
(4) any other information required by the comptroller. | ||
Sec. 165.0007. DISPOSITION OF PROCEEDS. The comptroller | ||
shall deposit the proceeds from taxes imposed under this chapter to | ||
the credit of the general revenue fund. | ||
SECTION 2.23. Section 171.1012, Tax Code, is amended by | ||
adding Subsection (u) to read as follows: | ||
(u) Notwithstanding any other provision of this section, a | ||
taxable entity that employs a professional athlete and that elects | ||
to subtract costs of goods sold may not include the cost to employ | ||
the professional athlete as labor costs when calculating the | ||
entity's costs of goods sold to the extent the amount paid to the | ||
athlete exceeds the limit on wage and cash compensation under | ||
Section 171.1013(c) as applied to the athlete. In this subsection, | ||
"professional athlete" has the meaning assigned by Section 406.095, | ||
Labor Code. | ||
SECTION 2.24. Section 183.043(b), Tax Code, is amended to | ||
read as follows: | ||
(b) Sections 151.027(a) and [ |
||
not apply to the tax imposed by this subchapter. | ||
SECTION 2.25. Section 313.021(2), Tax Code, is amended to | ||
read as follows: | ||
(2) "Qualified property" means: | ||
(A) land: | ||
(i) that is located in an area designated as | ||
a reinvestment zone under Chapter 311 or 312 or as an enterprise | ||
zone under Chapter 2303, Government Code; | ||
(ii) on which a person proposes to | ||
construct a new building or erect or affix a new improvement that | ||
does not exist before the date the person submits a complete | ||
application for a limitation on appraised value under this | ||
subchapter; | ||
(iii) that is not subject to a tax abatement | ||
agreement entered into by a school district under Chapter 312; and | ||
(iv) on which, in connection with the new | ||
building or new improvement described by Subparagraph (ii), the | ||
owner or lessee of, or the holder of another possessory interest in, | ||
the land proposes to: | ||
(a) make a qualified investment in an | ||
amount equal to at least the minimum amount required by Section | ||
313.023; and | ||
(b) create at least 25 new qualifying | ||
jobs; | ||
(B) the new building or other new improvement | ||
described by Paragraph (A)(ii); and | ||
(C) tangible personal property: | ||
(i) that is not subject to a tax abatement | ||
agreement entered into by a school district under Chapter 312; and | ||
(ii) [ |
||
[ |
||
in Section 151.318(q) or (q-1), that is first placed in service in | ||
the new building, in the newly expanded building, or in or on the | ||
new improvement described by Paragraph (A)(ii), or on the land on | ||
which that new building or new improvement is located, if the | ||
personal property is ancillary and necessary to the business | ||
conducted in that new building or in or on that new improvement. | ||
SECTION 2.26. Section 321.203(n), Tax Code, is amended to | ||
read as follows: | ||
(n) A sale of a service described by Section 151.0047 to | ||
construct, repair, restore, remodel, [ |
||
improvement to [ |
||
consummated at the location of the job site. | ||
SECTION 2.27. Section 323.203(m), Tax Code, is amended to | ||
read as follows: | ||
(m) A sale of a service described by Section 151.0047 to | ||
construct, repair, restore, remodel, [ |
||
improvement to [ |
||
consummated at the location of the job site. | ||
SECTION 2.28. Subchapter F, Chapter 502, Transportation | ||
Code, is amended by adding Sections 502.257 and 502.258 to read as | ||
follows: | ||
Sec. 502.257. FEE; ELECTRIC MOTOR VEHICLE. Notwithstanding | ||
any other provision of this subchapter, the fee for a registration | ||
year for registration of a motor vehicle that uses electricity as | ||
its only source of motor power is the greater of: | ||
(1) $225; or | ||
(2) the applicable fee under Section 502.253. | ||
Sec. 502.258. FEE; HYBRID MOTOR VEHICLE. (a) In this | ||
section, "hybrid motor vehicle" means a motor vehicle that draws | ||
propulsion energy from both gasoline or conventional diesel fuel | ||
and a rechargeable energy storage system. | ||
(b) Notwithstanding any other provision of this subchapter, | ||
the fee for a registration year for registration of a hybrid motor | ||
vehicle is the greater of: | ||
(1) $125; or | ||
(2) the applicable fee under Section 502.253. | ||
SECTION 2.29. The following provisions of the Tax Code are | ||
repealed: | ||
(1) Section 151.0028(c); | ||
(2) Section 151.314(h); | ||
(3) Section 151.315; | ||
(4) Section 151.317(c); | ||
(5) Section 151.3186; | ||
(6) Section 151.319; | ||
(7) Section 151.320; and | ||
(8) Section 151.424. | ||
SECTION 2.30. The changes in law made by this article do 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 2.31. Section 171.1012(u), Tax Code, as added by | ||
this article, applies only to a report originally due on or after | ||
the effective date of this Act. | ||
ARTICLE 3. EFFECTIVE DATE | ||
SECTION 3.01. This Act takes effect January 1, 2022, but | ||
only if the constitutional amendment proposed by the 87th | ||
Legislature, Regular Session, 2021, authorizing the legislature to | ||
exempt from ad valorem taxation by a school district a portion of | ||
the appraised value of an individual's residence homestead in an | ||
amount equal to 150 percent of the median appraised value of all | ||
single-family residences in the state is approved by the voters. If | ||
that constitutional amendment is not approved by the voters, this | ||
Act has no effect. |