Texas 2009 - 81st Regular

Texas House Bill HB2583 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	81R30104 E
2	2	By: Hartnett H.B. No. 2583
3	3	Substitute the following for H.B. No. 2583:
4	4	By: Hilderbran C.S.H.B. No. 2583
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the imposition of the sales and use tax on taxable items
10	10	sold or provided under qualified destination management services
11	11	contracts.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter C, Chapter 151, Tax Code, is amended
14	14	by adding Section 151.0565 to read as follows:
15	15	Sec. 151.0565. TAXABLE ITEMS SOLD OR PROVIDED UNDER
16	16	DESTINATION MANAGEMENT SERVICES CONTRACTS. (a) In this section:
17	17	(1) "Destination management services" means the
18	18	following services when provided under a qualified destination
19	19	management services contract:
20	20	(A) transportation management;
21	21	(B) booking and managing entertainers;
22	22	(C) coordination of tours or recreational
23	23	activities;
24	24	(D) meeting, conference, or event registration;
25	25	(E) meeting, conference, or event staffing;
26	26	(F) event management; and
27	27	(G) meal coordination.
28	28	(2) "Qualified destination management company" means
29	29	a business entity that:
30	30	(A) is incorporated or is a limited liability
31	31	company;
32	32	(B) receives at least 80 percent of the entity's
33	33	annual total revenue from providing or arranging for the provision
34	34	of destination management services;
35	35	(C) maintains a permanent nonresidential office
36	36	from which the destination management services are provided or
37	37	arranged;
38	38	(D) has at least three full-time employees;
39	39	(E) spends at least one percent of the entity's
40	40	annual gross receipts to market the destinations with respect to
41	41	which destination management services are provided;
42	42	(F) has at least 80 percent of the entity's
43	43	clients described by Subdivision (3)(A) located outside this state;
44	44	(G) other than office equipment used in the
45	45	conduct of the entity's business, does not own equipment used to
46	46	directly provide destination management services, including motor
47	47	coaches, limousines, sedans, dance floors, decorative props,
48	48	lighting, podiums, sound or video equipment, or equipment for
49	49	catered meals;
50	50	(H) is not doing business as a caterer;
51	51	(I) does not provide services for weddings;
52	52	(J) does not own a venue at which events or
53	53	activities for which destination management services are provided
54	54	occur; and
55	55	(K) is not a subsidiary of another entity that,
56	56	and is not a member of an affiliated group, as that term is defined
57	57	by Section 171.0001, another member of which:
58	58	(i) is doing business as, or owns or
59	59	operates another entity doing business as, a caterer; or
60	60	(ii) owns or operates a venue described by
61	61	Paragraph (J).
62	62	(3) "Qualified destination management services
63	63	contract" means a contract under which at least three of the
64	64	destination management services listed in Subdivision (1) are
65	65	provided:
66	66	(A) in this state to a client that is not an
67	67	individual and that:
68	68	(i) is a corporation, partnership, limited
69	69	liability company, trade association, or other business entity,
70	70	other than a social club or fraternal organization;
71	71	(ii) has its principal place of business
72	72	outside the county where the destination management services are to
73	73	be provided; and
74	74	(iii) agrees to pay the qualified
75	75	destination management company for all destination management
76	76	services provided to the client under the terms of the contract; and
77	77	(B) by a qualified destination management
78	78	company that pays or accrues liability for the payment of taxes
79	79	imposed by this chapter on purchases of taxable items that will be
80	80	consumed or used by the company in performing the contract.
81	81	(b) A qualified destination management company is the
82	82	consumer of taxable items sold or otherwise provided under a
83	83	qualified destination management services contract, and the
84	84	destination management services provided under the contract are not
85	85	considered taxable services, as that term is defined by Section
86	86	151.0101.
87	87	SECTION 2. This Act takes effect immediately if it receives
88	88	a vote of two-thirds of all the members elected to each house, as
89	89	provided by Section 39, Article III, Texas Constitution. If this
90	90	Act does not receive the vote necessary for immediate effect, this
91	91	Act takes effect September 1, 2009.