| 1 | 1 | | 84R21299 CBH-D |
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| 2 | 2 | | By: Button, Miller of Comal, Bernal, Larson, H.B. No. 3174 |
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| 3 | 3 | | Martinez Fischer |
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| 4 | 4 | | Substitute the following for H.B. No. 3174: |
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| 5 | 5 | | By: Springer C.S.H.B. No. 3174 |
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| 6 | 6 | | |
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| 7 | 7 | | |
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| 8 | 8 | | A BILL TO BE ENTITLED |
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| 9 | 9 | | AN ACT |
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| 10 | 10 | | relating to the application of the sales and use tax to certain |
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| 11 | 11 | | computer program transactions. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 151.006, Tax Code, is amended by adding |
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| 14 | 14 | | Subsection (d) to read as follows: |
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| 15 | 15 | | (d) A sale for resale includes the sale of a computer |
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| 16 | 16 | | program to a provider of Internet hosting who acquires the computer |
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| 17 | 17 | | program from an unrelated vendor for the purpose of selling the |
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| 18 | 18 | | right to use the computer program to an unrelated user of the |
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| 19 | 19 | | provider's Internet hosting services in the normal course of |
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| 20 | 20 | | business and in the form or condition in which the provider acquired |
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| 21 | 21 | | the computer program. For purposes of this subsection, the |
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| 22 | 22 | | purchase of the computer program by the provider qualifies as a sale |
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| 23 | 23 | | for resale only if the provider offers the unrelated user a |
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| 24 | 24 | | selection of computer programs that are available to the public for |
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| 25 | 25 | | purchase directly from an unrelated vendor and executes a written |
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| 26 | 26 | | contract with the unrelated user that specifies the name of the |
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| 27 | 27 | | computer program sold to the unrelated user and includes a charge to |
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| 28 | 28 | | the unrelated user for computing hardware. This subsection applies |
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| 29 | 29 | | notwithstanding Section 151.302(b), if the unrelated user |
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| 30 | 30 | | purchases the right to use the computer program from the provider |
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| 31 | 31 | | through the acquisition of a license and the provider does not |
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| 32 | 32 | | retain the right to use the computer program under that license. |
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| 33 | 33 | | The performance by the provider of routine maintenance of the |
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| 34 | 34 | | computer program that is recommended or required by the unrelated |
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| 35 | 35 | | vendor of the computer program does not affect the application of |
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| 36 | 36 | | this subsection. In this subsection, "Internet hosting" has the |
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| 37 | 37 | | meaning assigned by Section 151.108(a). |
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| 38 | 38 | | SECTION 2. The changes in law made by this Act do not affect |
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| 39 | 39 | | tax liability accruing before the effective date of this Act. That |
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| 40 | 40 | | liability continues in effect as if this Act had not been enacted, |
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| 41 | 41 | | and the former law is continued in effect for the collection of |
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| 42 | 42 | | taxes due and for civil and criminal enforcement of the liability |
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| 43 | 43 | | for those taxes. |
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| 44 | 44 | | SECTION 3. This Act takes effect immediately if it receives |
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| 45 | 45 | | a vote of two-thirds of all the members elected to each house, as |
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| 46 | 46 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 47 | 47 | | Act does not receive the vote necessary for immediate effect, this |
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| 48 | 48 | | Act takes effect September 1, 2015. |
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