Texas 2009 - 81st Regular

Texas Senate Bill SB1347

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the imposition of the sales and use tax on taxable items sold or provided under certain contracts.

Impact

The primary impact of SB1347 pertains to how sales tax is applied in the context of contractual agreements for destination management services. By framing qualified destination management companies as consumers for tax purposes, the bill aims to reduce the tax burden on these businesses, which are essential as intermediaries for events and tours. This shift would effectively allow these companies to pass on cost savings to their clients, ultimately fostering a more competitive environment in the hospitality and event management sectors in Texas. The bill aims to streamline tax obligations and clarify existing ambiguities within the law regarding destination management services.

Summary

SB1347 introduces amendments to the Texas Tax Code concerning the imposition of sales and use tax on certain taxable items related to destination management services. The bill defines 'destination management services' to include a variety of activities such as transportation management, event registration, and meal coordination. Notably, it creates a distinction for 'qualified destination management companies' that meet specific criteria regarding their revenue sources and nature of service provision. These companies, under the terms of SB1347, would be deemed the consumers of taxable items sold under specific contracts, thus exempting them from paying sales tax on these items.

Contention

While supporters argue the bill encourages business growth and operational efficiency in the destination management arena, there are concerns regarding the implications for local governments and other tax revenue sources reliant on sales tax collections. Critics may contend that exempting certain services from sales taxes could lead to a decrease in funding available for public services. Discussions around SB1347 highlight a balance between promoting business interests and ensuring adequate tax revenue for community needs. The bill is also viewed through the lens of fairness in taxation, as certain business sectors may receive preferential treatment under the proposed exemptions.

Companion Bills

TX HB2583

Identical Relating to the imposition of the sales and use tax on taxable items sold or provided under qualified destination management services contracts.

Previously Filed As

TX HB4310

Relating to the taxable items exempt from sales and use taxes.

TX HB4371

Relating to an exemption from sales and use taxes for certain items used by or for certain life sciences campuses.

TX HB2226

Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.

TX HB1037

Relating to a sales and use tax exemption for taxable items used to assist persons with an intellectual, developmental, or cognitive disability.

TX HB3104

Relating to the temporary exemption of certain tangible personal property related to certain connected data center projects from sales and use taxes.

TX SB1265

Relating to the temporary exemption of certain tangible personal property related to certain connected data center projects from sales and use taxes.

TX HB5

Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.

TX HB2763

Relating to an exemption from motor fuel taxes for certain fuel used by a rural transit district to provide public transportation.

TX HB4747

Relating to a franchise tax credit for taxable entities that provide child care.

TX SB1558

Relating to the use of certain gold or silver bullion or specie as legal tender and an exemption from sales and use taxes for certain items containing certain precious metals.

Similar Bills

No similar bills found.