H.B. No. 590
AN ACT
relating to the consummation of sales for purposes of local sales
and use taxes and to the reallocation of those taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 321.002, Tax Code, is amended to read as
follows:
Sec.
321.002. DEFINITIONS. (a) In this chapter:
(1) "Additional municipal sales and use tax" means
only the additional tax authorized by Section 321.101(b).
(2) "Municipality" includes any incorporated city,
town, or village.
(3) "Place of business of the retailer" means an
established outlet, office, or location operated by the retailer or
the retailer's agent or employee for the purpose of receiving
orders for taxable items and includes any location at which three or
more orders are received by the retailer during a calendar year. A
warehouse, storage yard, or manufacturing plant is not a "place of
business of the retailer" unless at last three orders are received
by the retailer during the calendar year at the warehouse, storage
yard, or manufacturing plant. An outlet, office, facility, or any
location that contracts with a retail or commercial business
[engaged in activities to which this chapter applies] to process
for that business invoices, purchase orders, [or] bills of lading,
or other equivalent records onto which sales tax is added,
including an office operated for the purpose of buying and selling
taxable goods to be used or consumed by the retail or commercial
business, is not a "place of business of the retailer" if the
comptroller determines that the outlet, office, facility, or
location functions or exists to avoid the tax imposed by this
chapter or to rebate a portion of the tax imposed by this chapter to
the contracting business. Notwithstanding any other provision of
this subdivision, a kiosk is not a "place of business of the
retailer." In this subdivision, "kiosk" means a small stand-alone
area or structure that:
(A) is used solely to display merchandise or to
submit orders for taxable items from a data entry device, or both;
(B) is located entirely within a location that is
a place of business of another retailer, such as a department store
or shopping mall; and
(C) at which taxable items are not available for
immediate delivery to a customer.
(b) Words used in this chapter and defined by Chapter 151
have the meanings assigned by Chapter 151.
SECTION 2. Subchapter F, Chapter 321, Tax Code, is amended
by adding Section 321.510 to read as follows:
Sec. 321.510. REALLOCATION OF MUNICIPAL OR LOCAL
GOVERNMENTAL ENTITY TAX REVENUE. (a) In this section, "local
governmental entity" includes any governmental entity created by
the legislature that has a limited purpose or function, that has a
defined or restricted geographic territory, and that is authorized
by law to impose a local sales and use tax the imposition,
computation, administration, enforcement, and collection of which
is governed by this chapter.
(b) This section applies only if:
(1) the comptroller:
(A) reallocates local tax revenue from a
municipality or local governmental entity to another municipality
or local governmental entity; or
(B) refunds local tax revenue that was previously
allocated to a municipality or local governmental entity; and
(2) the amount the comptroller reallocates or refunds
is at least equal to the lesser of:
(A) $200,000;
(B) an amount equal to 10 percent of the revenue
received by the municipality or local governmental entity under
this chapter during the calendar year preceding the calendar year
in which the reallocation or refund is made; or
(C) an amount that increases or decreases the
amount of revenue the municipality or local governmental entity
receives under this chapter during a calendar month by more than 15
percent as compared to revenue received by the municipality or
local governmental entity during the same month in any previous
year.
(c) Subject to the criteria provided by this section, a
municipality or local governmental entity may request a review of
all available sales tax returns and reports in the comptroller's
possession filed by not more than five individual taxpayers doing
business in the municipality or local governmental entity that are
included and identified by the municipality or local governmental
entity from the information received from the comptroller under
Section 321.3022 and that relate to a reallocation or refund in an
amount described by Subsection (b).
(d) The comptroller shall provide the returns and reports
requested under Subsection (c) for review regardless of whether the
information in the returns or reports is confidential under state
law, including Sections 111.006 and 151.027.
(e) The provision of confidential information to a
municipality or local governmental entity under this section does
not affect the confidential nature of the information in the
returns or reports. A municipality or local governmental entity
shall use the information only in a manner that maintains the
confidential nature of the information and may not disclose or
release the information to the public.
(f) A municipality or local governmental entity must submit
the request under Subsection (c) not later than the 90th day after
the date the municipality or local governmental entity discovers a
reallocation or refund described by Subsection (b).
(g) Not earlier than the 30th day or later than the 90th day
after the date the comptroller receives a request under Subsection
(c), the comptroller shall provide the requested returns and
reports to the requesting municipality or local governmental entity
for review.
(h) The comptroller may set and collect from a municipality
or local governmental entity a reasonable fee to cover the expense
of compiling and providing information under this section.
SECTION 3. Section 322.108(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Subsection (b), the following
apply to the taxes imposed by this chapter in the same manner as
applicable to a municipality under Chapter 321:
(1) Section 321.002(a)(3);
(2) Section 321.003;
(3) Section 321.203;
(4) Section 321.205(d);
(5) Section 321.208;
(6) Section 321.209;
(7) Section 321.303;
(8) Section 321.304; [and]
(9) Section 321.305; and
(10) Section 321.510.
SECTION 4. Subchapter F, Chapter 323, Tax Code, is amended
by adding Section 323.510 to read as follows:
Sec. 323.510. REALLOCATION OF COUNTY OR LOCAL GOVERNMENTAL
ENTITY TAX REVENUE. (a) In this section, "local governmental
entity" includes any governmental entity created by the legislature
that has a limited purpose or function, that has a defined or
restricted geographic territory, and that is authorized by law to
impose a local sales and use tax the imposition, computation,
administration, enforcement, and collection of which is governed by
this chapter.
(b) This section applies only if:
(1) the comptroller:
(A) reallocates local tax revenue from a county
or local governmental entity to another county or local
governmental entity; or
(B) refunds local tax revenue that was previously
allocated to a county or local governmental entity; and
(2) the amount the comptroller reallocates or refunds
is at least equal to the lesser of:
(A) $200,000;
(B) an amount equal to 10 percent of the revenue
received by the county or local governmental entity under this
chapter during the calendar year preceding the calendar year in
which the reallocation or refund is made; or
(C) an amount that increases or decreases the
amount of revenue the county or local governmental entity receives
under this chapter during a calendar month by more than 15 percent
as compared to revenue received by the county or local governmental
entity during the same month in any previous year.
(c) Subject to the criteria provided by this section, a
county or local governmental entity may request a review of all
available sales tax returns and reports in the comptroller's
possession filed by not more than five individual taxpayers doing
business in the county or local governmental entity that are
included and identified by the county or local governmental entity
from the information received from the comptroller under Section
323.3022 and that relate to a reallocation or refund in an amount
described by Subsection (b).
(d) The comptroller shall provide the returns and reports
requested under Subsection (c) for review regardless of whether the
information in the returns or reports is confidential under state
law, including Sections 111.006 and 151.027.
(e) The provision of confidential information to a county or
local governmental entity under this section does not affect the
confidential nature of the information in the returns or reports. A
county or local governmental entity shall use the information only
in a manner that maintains the confidential nature of the
information and may not disclose or release the information to the
public.
(f) A county or local governmental entity must submit the
request under Subsection (c) not later than the 90th day after the
date the county or local governmental entity discovers a
reallocation or refund described by Subsection (b).
(g) Not earlier than the 30th day or later than the 90th day
after the date the comptroller receives a request under Subsection
(c), the comptroller shall provide the requested returns and
reports to the requesting county or local governmental entity for
review.
(h) The comptroller may set and collect from a county or
local governmental entity a reasonable fee to cover the expense of
compiling and providing information under this section.
SECTION 5. Section 1 of this Act takes effect September 1,
2011.
SECTION 6. This Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 590 was passed by the House on May 11,
2011, by the following vote: Yeas 149, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 590 on May 25, 2011, by the following vote: Yeas 142, Nays 0, 2
present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 590 was passed by the Senate, with
amendments, on May 20, 2011, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor