Texas 2013 - 83rd Regular

Texas House Bill HB1133 Compare Versions

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1	1	By: Otto, et al. (Senate Sponsor - Estes) H.B. No. 1133
2	2	(In the Senate - Received from the House May 8, 2013;
3	3	May 9, 2013, read first time and referred to Committee on Finance;
4	4	May 17, 2013, reported favorably by the following vote: Yeas 14,
5	5	Nays 0; May 17, 2013, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to a sales and use tax refund for tangible personal
11	11	property used to provide cable television service, Internet access
12	12	service, or telecommunications services and to the exclusion of
13	13	that property in certain economic development agreements.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
16	16	by adding Section 151.3186 to read as follows:
17	17	Sec. 151.3186. PROPERTY USED IN CABLE TELEVISION, INTERNET
18	18	ACCESS, OR TELECOMMUNICATIONS SERVICES. (a) In this section,
19	19	"provider" means a provider of cable television service, Internet
20	20	access service, or telecommunications services.
21	21	(b) A provider is entitled to a refund of the tax imposed by
22	22	this chapter on the sale, lease, or rental or storage, use, or other
23	23	consumption of tangible personal property if:
24	24	(1) the property is sold, leased, or rented to or
25	25	stored, used, or consumed by a provider or a subsidiary of a
26	26	provider; and
27	27	(2) the property is directly used or consumed by the
28	28	provider or subsidiary described by Subdivision (1) in or during:
29	29	(A) the distribution of cable television
30	30	service;
31	31	(B) the provision of Internet access service; or
32	32	(C) the transmission, conveyance, routing, or
33	33	reception of telecommunications services.
34	34	(c) Notwithstanding Subsection (b), property directly used
35	35	or consumed in or during the provision, creation, or production of a
36	36	data processing service or information service is not eligible for
37	37	a refund under this section.
38	38	(d) The amount of the refund to which a provider or
39	39	subsidiary, as described by Subsection (b)(1), is entitled under
40	40	this section for a calendar year is equal to:
41	41	(1) the amount of the tax paid by the provider or
42	42	subsidiary during the calendar year on property eligible for a
43	43	refund under this section, if the total amount of tax paid by all
44	44	providers and subsidiaries described by Subsection (b)(1) that are
45	45	eligible for a refund under this section is not more than $50
46	46	million for the calendar year; or
47	47	(2) a pro rata share of $50 million, if the total
48	48	amount of tax paid by all providers and subsidiaries described by
49	49	Subsection (b)(1) that are eligible for a refund under this section
50	50	is more than $50 million for the calendar year.
51	51	(e) The refund provided by this section does not apply to
52	52	the taxes imposed under Subtitle C, Title 3.
53	53	SECTION 2. Section 313.021(2), Tax Code, is amended to read
54	54	as follows:
55	55	(2) "Qualified property" means:
56	56	(A) land:
57	57	(i) that is located in an area designated as
58	58	a reinvestment zone under Chapter 311 or 312 or as an enterprise
59	59	zone under Chapter 2303, Government Code;
60	60	(ii) on which a person proposes to
61	61	construct a new building or erect or affix a new improvement that
62	62	does not exist before the date the person applies for a limitation
63	63	on appraised value under this subchapter;
64	64	(iii) that is not subject to a tax abatement
65	65	agreement entered into by a school district under Chapter 312; and
66	66	(iv) on which, in connection with the new
67	67	building or new improvement described by Subparagraph (ii), the
68	68	owner or lessee of, or the holder of another possessory interest in,
69	69	the land proposes to:
70	70	(a) make a qualified investment in an
71	71	amount equal to at least the minimum amount required by Section
72	72	313.023; and
73	73	(b) create at least 25 new jobs;
74	74	(B) the new building or other new improvement
75	75	described by Paragraph (A)(ii); and
76	76	(C) tangible personal property [that]:
77	77	(i) that is not subject to a tax abatement
78	78	agreement entered into by a school district under Chapter 312;
79	79	[and]
80	80	(ii) for which a sales and use tax refund is
81	81	not claimed under Section 151.3186; and
82	82	(iii) except for new equipment described in
83	83	Section 151.318(q) or (q-1), that is first placed in service in the
84	84	new building or in or on the new improvement described by Paragraph
85	85	(A)(ii), or on the land on which that new building or new
86	86	improvement is located, if the personal property is ancillary and
87	87	necessary to the business conducted in that new building or in or on
88	88	that new improvement.
89	89	SECTION 3. The change in law made by this Act does not
90	90	affect tax liability accruing before the effective date of this
91	91	Act. That liability continues in effect as if this Act had not been
92	92	enacted, and the former law is continued in effect for the
93	93	collection of taxes due and for civil and criminal enforcement of
94	94	the liability for those taxes.
95	95	SECTION 4. This Act takes effect September 1, 2013.
96	96	* * * * *