82R9304 ALL-D
By: Christian H.B. No. 3479
A BILL TO BE ENTITLED
AN ACT
relating to the rate and amount of the sales and use taxes imposed
on certain equipment sold, leased, or used by certain data centers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.051(b), Tax Code, is amended to read
as follows:
(b) Except as provided by Section 151.0516, the [The] sales
tax rate is 6-1/4 percent of the sales price of the taxable item
sold.
SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended
by adding Section 151.0516 to read as follows:
Sec. 151.0516. CERTAIN TANGIBLE PERSONAL PROPERTY SOLD TO
QUALIFIED DATA CENTERS. (a) In this section:
(1) "County average weekly wage" means the average
weekly wage in a county for all jobs during the most recent four
quarterly periods for which data is available, as computed by the
Texas Workforce Commission, at the time a data center creates a job
used to qualify under this section.
(2) "Data center" means a facility:
(A) located in this state;
(B) composed of one or more buildings
specifically constructed or refurbished and actually used
primarily to house servers and related equipment and support staff;
and
(C) that has an uninterruptible power source, a
generator backup power, a sophisticated fire suppression and
prevention system, and enhanced physical security that includes
restricted access, permanent security guards, video surveillance,
and electronic systems.
(3) "Permanent job" means an employment position that
will exist for at least five years after the date the job is
created.
(4) "Qualifying data center" means a data center that
meets the qualifications prescribed by Subsection (e).
(5) "Qualifying job" means a full-time, permanent job
that pays at least 150 percent of the county average weekly wage in
the county in which the job is based.
(b) Except as provided by Subsections (c) and (d), the sales
tax rate is one percent of the sales price of tangible personal
property purchased by a qualifying data center that is necessary to
manage or operate the data center, including:
(1) electricity;
(2) an electrical system;
(3) a cooling system;
(4) an emergency generator;
(5) hardware or a distributed mainframe computer or
server;
(6) a data storage device;
(7) network connectivity equipment;
(8) a peripheral component or system; and
(9) a component part of tangible personal property
described by Subdivisions (2)-(8).
(c) This section does not apply to:
(1) office equipment or supplies; or
(2) equipment or supplies used in sales or
distribution activities or in transportation activities.
(d) Notwithstanding any other law, the amount of tax imposed
under this chapter on the sale of each item of tangible personal
property to which this section applies may not exceed $80.
(e) A data center is entitled to purchase tangible personal
property at the rate and subject to the limitation authorized by
this section only if:
(1) the data center creates at least 25 qualifying
jobs in the county in which the data center is located;
(2) the data center agrees to invest at least $150
million in this state over a five-year period after initial
construction of the data center facility; and
(3) the data center facility is designed, constructed
or refurbished, and operated so that the facility obtains
certification under the Leadership in Energy and Environmental
Design (LEED) Green Building Rating System.
(f) A qualifying data center is entitled to purchase
tangible personal property at the rate and subject to the
limitation authorized by this section beginning on the date the
center makes the initial investment described by Subsection (e)(2)
and ending on the 10th anniversary of that date.
(g) The comptroller shall adopt rules necessary to
implement this section, including rules relating to the:
(1) qualification of a data center under this section;
(2) determination of the date a data center initially
qualifies for the entitlement to purchase tangible personal
property at the rate and subject to the limitation authorized by
this section; and
(3) reporting and other procedures necessary to ensure
that the qualifying data center complies with this section and
remains entitled to purchase tangible personal property at the rate
and subject to the limitation authorized by this section.
SECTION 3. Section 151.101(b), Tax Code, is amended to read
as follows:
(b) The tax is at the same percentage rate as is provided by
Section 151.051 [of this code] on the sales price of the taxable
item or, as applicable, at the same percentage rate and limitation
as is provided by Section 151.0516 on the sales price of tangible
personal property subject to that section.
SECTION 4. Subchapter C, Chapter 321, Tax Code, is amended
by adding Section 321.2075 to read as follows:
Sec. 321.2075. LOCAL TAX INAPPLICABLE TO TANGIBLE PERSONAL
PROPERTY TO WHICH SECTION 151.0516 APPLIES. The taxes imposed by
this chapter do not apply to the sale, storage, use, or other
consumption of tangible personal property if the sale, storage,
use, or other consumption of the property is subject to the rate and
limitation authorized by Section 151.0516.
SECTION 5. Subchapter B, Chapter 322, Tax Code, is amended
by adding Section 322.1065 to read as follows:
Sec. 322.1065. LOCAL TAX INAPPLICABLE TO TANGIBLE PERSONAL
PROPERTY TO WHICH SECTION 151.0516 APPLIES. The taxes imposed by
this chapter do not apply to the sale, storage, use, or other
consumption of tangible personal property if the sale, storage,
use, or other consumption of the property is subject to the rate and
limitation authorized by Section 151.0516.
SECTION 6. Subchapter C, Chapter 323, Tax Code, is amended
by adding Section 323.2065 to read as follows:
Sec. 323.2065. LOCAL TAX INAPPLICABLE TO TANGIBLE PERSONAL
PROPERTY TO WHICH SECTION 151.0516 APPLIES. The taxes imposed by
this chapter do not apply to the sale, storage, use, or other
consumption of tangible personal property if the sale, storage,
use, or other consumption of the property is subject to the rate and
limitation authorized by Section 151.0516.
SECTION 7. 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 8. This Act takes effect September 1, 2011.