82R2400 KLA-D
By: Raymond H.B. No. 744
A BILL TO BE ENTITLED
AN ACT
relating to exemptions from the sales tax for certain business
entities during a limited period.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3411 to read as follows:
Sec. 151.3411. COMPUTER EQUIPMENT SOLD TO OR USED BY
ELIGIBLE BUSINESS ENTITIES DURING CERTAIN PERIODS. (a) In this
section:
(1) "Computer equipment" means a desktop or notebook
computer and related equipment, including:
(A) a computer monitor or other display device;
(B) a printer, which may also be capable of
performing scanning, photocopying, or facsimile functions; and
(C) other hardware or networking equipment for
computers, such as adapters, modems, servers, routers, and other
equipment associated with Internet access.
(2) "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 small business creates a
job used to qualify for an exemption under this section.
(3) "Eligible small business" means a small business
that meets the qualifications prescribed by Subsection (c).
(4) "Qualifying job" means a permanent full-time job
the weekly wage for which exceeds the county average weekly wage in
the county in which the job is based.
(5) "Small business" means a corporation,
partnership, sole proprietorship, or other legal entity that
employs fewer than 100 permanent full-time employees, including the
employees employed in the qualified jobs created to qualify for an
exemption under this section.
(b) The sale, lease, or rental to or use by an eligible small
business of a taxable item that is computer equipment is exempted
from the taxes imposed by this chapter and the business may claim a
refund or credit as provided by this section if:
(1) the item:
(A) is for the exclusive use and benefit of the
business;
(B) is necessary for the operation of the
business; and
(C) replaces computer equipment with respect to
the sale, lease, rental, or use of which the business paid the tax
imposed by this chapter; and
(2) the sale, lease, rental, or use of the item occurs
not later than the fifth anniversary of the date the business
initially qualifies as an eligible small business.
(c) A small business is eligible for the exemption provided
by Subsection (b) from the tax imposed by this chapter if the
business:
(1) is engaged in business in this state; and
(2) on or after September 1, 2011:
(A) creates at least 25 qualifying jobs in the
county in which the headquarters or other main office of the
business is located;
(B) invests at least $10 million in capital
investments in this state; and
(C) purchases, leases, rents, or uses computer
equipment for the exclusive use and benefit of the business that is
necessary for the operation of the business and pays the tax imposed
by this chapter on that purchase, lease, rental, or use.
(d) An eligible small business entitled to a credit or
refund under this section may elect to receive either a credit or a
refund. A business that elects to receive a credit must claim the
credit on the return for the period that ends not later than the
first anniversary of the date the taxable event occurred. A
business that elects to receive a refund must apply to the
comptroller for the refund before or during the calendar year
following the year in which the tax was paid.
(e) The comptroller may require a small business that claims
a credit or applies for a refund under this section to provide to
the comptroller additional documentation necessary to establish
that the business is an eligible small business.
(f) A refund under this section is not a refund of taxes
erroneously collected, and Section 111.064 does not apply.
(g) The comptroller shall adopt rules necessary to
implement this section, including rules relating to the:
(1) qualification of a small business for an exemption
under this section;
(2) determination of the date a small business
initially qualifies as an eligible small business; and
(3) circumstances under which computer equipment is
considered to replace other computer equipment.
SECTION 2. 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 3. This Act takes effect September 1, 2011.