By: Otto, et al. (Senate Sponsor - Estes) H.B. No. 1133
(In the Senate - Received from the House May 8, 2013;
May 9, 2013, read first time and referred to Committee on Finance;
May 17, 2013, reported favorably by the following vote: Yeas 14,
Nays 0; May 17, 2013, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to a sales and use tax refund for tangible personal
property used to provide cable television service, Internet access
service, or telecommunications services and to the exclusion of
that property in certain economic development agreements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3186 to read as follows:
Sec. 151.3186. PROPERTY USED IN CABLE TELEVISION, INTERNET
ACCESS, OR TELECOMMUNICATIONS SERVICES. (a) In this section,
"provider" means a provider of cable television service, Internet
access service, or telecommunications services.
(b) A provider is entitled to a refund of the tax imposed by
this chapter on the sale, lease, or rental or storage, use, or other
consumption of tangible personal property if:
(1) the property is sold, leased, or rented to or
stored, used, or consumed by a provider or a subsidiary of a
provider; and
(2) the property is directly used or consumed by the
provider or subsidiary described by Subdivision (1) in or during:
(A) the distribution of cable television
service;
(B) the provision of Internet access service; or
(C) the transmission, conveyance, routing, or
reception of telecommunications services.
(c) Notwithstanding Subsection (b), property directly used
or consumed in or during the provision, creation, or production of a
data processing service or information service is not eligible for
a refund under this section.
(d) The amount of the refund to which a provider or
subsidiary, as described by Subsection (b)(1), is entitled under
this section for a calendar year is equal to:
(1) the amount of the tax paid by the provider or
subsidiary during the calendar year on property eligible for a
refund under this section, if the total amount of tax paid by all
providers and subsidiaries described by Subsection (b)(1) that are
eligible for a refund under this section is not more than $50
million for the calendar year; or
(2) a pro rata share of $50 million, if the total
amount of tax paid by all providers and subsidiaries described by
Subsection (b)(1) that are eligible for a refund under this section
is more than $50 million for the calendar year.
(e) The refund provided by this section does not apply to
the taxes imposed under Subtitle C, Title 3.
SECTION 2. Section 313.021(2), Tax Code, is amended to read
as follows:
(2) "Qualified property" means:
(A) land:
(i) that is located in an area designated as
a reinvestment zone under Chapter 311 or 312 or as an enterprise
zone under Chapter 2303, Government Code;
(ii) on which a person proposes to
construct a new building or erect or affix a new improvement that
does not exist before the date the person applies for a limitation
on appraised value under this subchapter;
(iii) that is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(iv) on which, in connection with the new
building or new improvement described by Subparagraph (ii), the
owner or lessee of, or the holder of another possessory interest in,
the land proposes to:
(a) make a qualified investment in an
amount equal to at least the minimum amount required by Section
313.023; and
(b) create at least 25 new jobs;
(B) the new building or other new improvement
described by Paragraph (A)(ii); and
(C) tangible personal property [that]:
(i) that is not subject to a tax abatement
agreement entered into by a school district under Chapter 312;
[and]
(ii) for which a sales and use tax refund is
not claimed under Section 151.3186; and
(iii) except for new equipment described in
Section 151.318(q) or (q-1), that is first placed in service in the
new building or in or on the new improvement described by Paragraph
(A)(ii), or on the land on which that new building or new
improvement is located, if the personal property is ancillary and
necessary to the business conducted in that new building or in or on
that new improvement.
SECTION 3. 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 4. This Act takes effect September 1, 2013.
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