81R1325 KLA-F
By: King of Parker H.B. No. 1658
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from the sales tax for certain
telecommunications equipment.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3186 to read as follows:
Sec. 151.3186. PROPERTY USED IN TELECOMMUNICATIONS. (a)
In this section, "telecommunications equipment" means machinery,
equipment, and software used to send, receive, or store voice or
data communications, and equipment used to enable, facilitate,
maintain, or monitor that machinery, equipment, or software. The
term includes:
(1) antennas, amplifiers, poles, wires, cables,
rectifiers, duplexers, multiplexers, receivers, repeaters,
transmitters, power equipment, modems, routers, and storage
devices; and
(2) general central office switching equipment,
including channel cards, frames, and cabinets.
(b) Telecommunications equipment is exempted from the taxes
imposed by this chapter if the equipment is sold, leased, or rented
to a provider of telecommunications services or used by a provider
of telecommunications services.
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 July 1, 2009, 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 effect on that
date, this Act takes effect October 1, 2009.