| 1 | 1 | | By: Oliveira H.B. No. 3893 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the rate of the state sales tax on direct broadcast |
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| 7 | 7 | | satellite service. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 151.0033 is amended to read as follows: |
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| 10 | 10 | | Sec. 151.0033. "CABLE TELEVISION SERVICE". "Cable |
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| 11 | 11 | | television service" means the distribution of video programming |
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| 12 | 12 | | with or without use of wires to subscribing or paying customers, |
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| 13 | 13 | | except that the term does not include direct broadcast satellite |
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| 14 | 14 | | service. |
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| 15 | 15 | | SECTION 2. Subchapter A, Chapter 151, Tax Code, is amended |
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| 16 | 16 | | by adding Section 151.0037 to read as follows: |
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| 17 | 17 | | Sec. 151.0037. "DIRECT BROADCAST SATELLITE SERVICE". |
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| 18 | 18 | | "Direct broadcast satellite service" means the distribution or |
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| 19 | 19 | | broadcasting of video programming or services by satellite directly |
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| 20 | 20 | | to a subscriber's or paying customer's receiving equipment. The |
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| 21 | 21 | | term includes: |
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| 22 | 22 | | (1) the rental of receiving equipment used by the |
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| 23 | 23 | | subscriber or paying customer to obtain the service; |
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| 24 | 24 | | (2) the provision of premium channels; and |
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| 25 | 25 | | (3) the installation or repair of receiving equipment |
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| 26 | 26 | | used by the subscriber or paying customer to obtain the service. |
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| 27 | 27 | | SECTION 3. Section 151.0101(a), Tax Code, is amended to |
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| 28 | 28 | | read as follows: |
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| 29 | 29 | | (a) "Taxable services" means: |
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| 30 | 30 | | (1) amusement services; |
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| 31 | 31 | | (2) cable television services; |
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| 32 | 32 | | (3) personal services; |
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| 33 | 33 | | (4) motor vehicle parking and storage services; |
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| 34 | 34 | | (5) the repair, remodeling, maintenance, and |
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| 35 | 35 | | restoration of tangible personal property, except: |
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| 36 | 36 | | (A) aircraft; |
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| 37 | 37 | | (B) a ship, boat, or other vessel, other than: |
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| 38 | 38 | | (i) a taxable boat or motor as defined by |
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| 39 | 39 | | Section 160.001; |
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| 40 | 40 | | (ii) a sports fishing boat; or |
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| 41 | 41 | | (iii) any other vessel used for pleasure; |
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| 42 | 42 | | (C) the repair, maintenance, and restoration of a |
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| 43 | 43 | | motor vehicle; and |
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| 44 | 44 | | (D) the repair, maintenance, creation, and |
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| 45 | 45 | | restoration of a computer program, including its development and |
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| 46 | 46 | | modification, not sold by the person performing the repair, |
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| 47 | 47 | | maintenance, creation, or restoration service; |
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| 48 | 48 | | (6) telecommunications services; |
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| 49 | 49 | | (7) credit reporting services; |
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| 50 | 50 | | (8) debt collection services; |
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| 51 | 51 | | (9) insurance services; |
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| 52 | 52 | | (10) information services; |
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| 53 | 53 | | (11) real property services; |
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| 54 | 54 | | (12) data processing services; |
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| 55 | 55 | | (13) real property repair and remodeling; |
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| 56 | 56 | | (14) security services; |
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| 57 | 57 | | (15) telephone answering services; |
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| 58 | 58 | | (16) Internet access service; |
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| 59 | 59 | | (17) direct broadcast satellite service; and |
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| 60 | 60 | | (18) [(17)] a sale by a transmission and distribution |
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| 61 | 61 | | utility, as defined in Section 31.002, Utilities Code, of |
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| 62 | 62 | | transmission or delivery of service directly to an electricity |
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| 63 | 63 | | end-use customer whose consumption of electricity is subject to |
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| 64 | 64 | | taxation under this chapter. |
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| 65 | 65 | | SECTION 4. Section 151.051, Tax Code is amended by adding |
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| 66 | 66 | | Subsection (c) to read as follows: |
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| 67 | 67 | | (c) An additional tax is imposed on the sale of direct |
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| 68 | 68 | | broadcast satellite service in an incorporated area. The sales tax |
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| 69 | 69 | | rate for the additional tax is 7 percent of the sales price of the |
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| 70 | 70 | | direct broadcast satellite service provided in an incorporated |
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| 71 | 71 | | area. |
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| 72 | 72 | | SECTION 5. This Act takes effect October 1, 2009, and |
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| 73 | 73 | | applies to the sale of direct broadcast satellite services, as |
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| 74 | 74 | | defined by this Act, on or after that date. The sale of direct |
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| 75 | 75 | | broadcast satellite services, as defined by this Act, before the |
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| 76 | 76 | | effective date of this Act is governed by the law in effect at the |
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| 77 | 77 | | time of the transaction, and that law is continued in effect for the |
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| 78 | 78 | | enforcement and collection of those taxes. |
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