82R3896 ALL-F
By: Duncan S.B. No. 1721
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from the sales and use tax for tangible
personal property or a taxable service that is resold or otherwise
transferred.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.006, Tax Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) "Sale for resale" means a sale of:
(1) tangible personal property or a taxable service to
a purchaser who acquires the property or service for the purpose of
reselling it with or as a taxable item in the United States of
America or a possession or territory of the United States of America
or in the United Mexican States in the normal course of business in
the form or condition in which it is acquired or as an attachment to
or integral part of other tangible personal property or taxable
service;
(2) tangible personal property to a purchaser for the
sole purpose of the purchaser's leasing or renting it in the United
States of America or a possession or territory of the United States
of America or in the United Mexican States in the normal course of
business to another person, but not if incidental to the leasing or
renting of real estate;
(3) tangible personal property to a purchaser who
acquires the property for the purpose of transferring it in the
United States of America or a possession or territory of the United
States of America or in the United Mexican States as an integral
part of a taxable service; [or]
(4) a taxable service performed on tangible personal
property that is held for sale by the purchaser of the taxable
service; or
(5) tangible personal property to a purchaser who
acquires the property for the sole purpose of transferring it as an
integral part of performing a contract with the federal government
only if the purchaser:
(A) allocates to the contract the cost of the
property as a direct or indirect cost;
(B) bills the cost of the property to the federal
government for reimbursement; and
(C) transfers title to the property to the
federal government under the contract and applicable federal
acquisition regulations.
(c) Except as otherwise provided by this chapter, a sale for
resale does not include the sale of tangible personal property or a
taxable service to a purchaser who acquires the property or service
for the purpose of performing a service that is not subject to
taxation under this chapter, regardless of whether title transfers
to the purchaser's customer.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.