81R25666 JE-F
By: Oliveira H.B. No. 3927
Substitute the following for H.B. No. 3927:
By: Oliveira C.S.H.B. No. 3927
A BILL TO BE ENTITLED
AN ACT
relating to the computation of taxable margin for purposes of the
franchise tax by a taxable entity principally engaged in Internet
hosting.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.0001, Tax Code, is amended by adding
Subdivision (9-a) to read as follows:
(9-a) "Internet hosting" means providing for
consideration to an unrelated user access over the Internet to
computer servers on which the users process the users' own data and
that are owned or leased and managed by the provider, and that are
located in a remote, secure data center that is owned or leased by
the provider. The term does not include telecommunications
services. For purposes of this subdivision, a computer server is
managed by the entity that provides, under contract with the user:
(A) the operating system license and
installation and maintenance for the server;
(B) redundant electric power for the server and
for the secure data center;
(C) redundant Internet access for the server; and
(D) hardware maintenance for the server.
SECTION 2. Section 171.106, Tax Code, is amended by adding
Subsections (g) and (h) to read as follows:
(g) For a taxable entity receiving more than 75 percent of
its total revenue from Internet hosting, a receipt from Internet
hosting is a receipt from business done in this state if the
customer to whom the service is provided is located in this state.
Except as provided by Subsection (h), this subsection takes effect
for reports due on or after January 1, 2015.
(h) On or before December 1 of each year, the comptroller
shall evaluate the statewide fiscal impact of the implementation of
Subsection (g). If after an evaluation the comptroller determines
that implementation of Subsection (g) will not have a negative
fiscal impact on this state, Subsection (g) takes effect for each
report originally due on or after January 1 of the year following
the year in which the comptroller makes that determination. This
subsection expires December 2, 2013.
SECTION 3. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 4. This Act takes effect September 1, 2009.