| 1 | 1 | | 84R13468 CJC-F |
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| 2 | 2 | | By: Gonzales H.B. No. 3689 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the temporary exemption of certain tangible personal |
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| 8 | 8 | | property related to a data center from the state sales and use tax. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 151.359(a)(2), Tax Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (2) "Data center" means at least 50,000 [100,000] |
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| 13 | 13 | | square feet of space in a single building or portion of a single |
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| 14 | 14 | | building, which space: |
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| 15 | 15 | | (A) is located in this state on or after |
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| 16 | 16 | | September 1, 2013; |
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| 17 | 17 | | (B) is specifically constructed or refurbished |
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| 18 | 18 | | and actually used primarily to house servers and related equipment |
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| 19 | 19 | | and support staff for the processing, storage, and distribution of |
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| 20 | 20 | | data; |
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| 21 | 21 | | (C) is used by a single qualifying occupant for |
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| 22 | 22 | | the processing, storage, and distribution of data; |
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| 23 | 23 | | (D) is not used primarily by a telecommunications |
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| 24 | 24 | | provider to place tangible personal property that is used to |
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| 25 | 25 | | deliver telecommunications services; and |
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| 26 | 26 | | (E) has an uninterruptible power source, |
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| 27 | 27 | | generator backup power, a sophisticated fire suppression and |
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| 28 | 28 | | prevention system, and enhanced physical security that includes |
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| 29 | 29 | | restricted access, video surveillance, and electronic systems. |
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| 30 | 30 | | SECTION 2. Sections 151.359(d) and (f), Tax Code, are |
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| 31 | 31 | | amended to read as follows: |
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| 32 | 32 | | (d) Subject to Subsection (k), a data center may be |
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| 33 | 33 | | certified by the comptroller as a qualifying data center for |
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| 34 | 34 | | purposes of this section if, on or after September 1, 2013: |
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| 35 | 35 | | (1) a single qualifying occupant: |
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| 36 | 36 | | (A) contracts with a qualifying owner or |
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| 37 | 37 | | qualifying operator to lease space in which the qualifying occupant |
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| 38 | 38 | | will locate a data center; or |
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| 39 | 39 | | (B) occupies a space that was not previously used |
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| 40 | 40 | | as a data center in which the qualifying occupant will locate a data |
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| 41 | 41 | | center, in the case of a qualifying occupant who is also the |
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| 42 | 42 | | qualifying operator and the qualifying owner; and |
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| 43 | 43 | | (2) the qualifying owner, qualifying operator, or |
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| 44 | 44 | | qualifying occupant, jointly or independently: |
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| 45 | 45 | | (A) creates at least 15 [20] qualifying jobs in |
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| 46 | 46 | | the county in which the data center is located, not including jobs |
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| 47 | 47 | | moved from one county in this state to another county in this state; |
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| 48 | 48 | | and |
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| 49 | 49 | | (B) makes or agrees to make a capital investment, |
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| 50 | 50 | | on or after September 1, 2013, of at least $100 [$200] million in |
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| 51 | 51 | | that particular data center over a five-year period beginning on |
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| 52 | 52 | | the date the data center is certified by the comptroller as a |
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| 53 | 53 | | qualifying data center. |
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| 54 | 54 | | (f) The exemption provided by this section begins on the |
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| 55 | 55 | | date the data center is certified by the comptroller as a qualifying |
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| 56 | 56 | | data center and expires: |
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| 57 | 57 | | (1) on the 10th anniversary of that date, if the |
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| 58 | 58 | | qualifying occupant, qualifying owner, or qualifying operator |
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| 59 | 59 | | independently or jointly makes a capital investment of at least |
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| 60 | 60 | | $100 [$200] million but less than $250 million as provided by |
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| 61 | 61 | | Subsection (d)(2)(B); or |
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| 62 | 62 | | (2) on the 15th anniversary of that date, if the |
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| 63 | 63 | | qualifying occupant, qualifying owner, or qualifying operator |
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| 64 | 64 | | independently or jointly makes a capital investment of $250 million |
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| 65 | 65 | | or more as provided by Subsection (d)(2)(B). |
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| 66 | 66 | | SECTION 3. The change in law made by this Act does not |
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| 67 | 67 | | affect tax liability accruing before the effective date of this |
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| 68 | 68 | | Act. That liability continues in effect as if this Act had not been |
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| 69 | 69 | | enacted, and the former law is continued in effect for the |
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| 70 | 70 | | collection of taxes due and for civil and criminal enforcement of |
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| 71 | 71 | | the liability for those taxes. |
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| 72 | 72 | | SECTION 4. This Act takes effect immediately if it receives |
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| 73 | 73 | | a vote of two-thirds of all the members elected to each house, as |
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| 74 | 74 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 75 | 75 | | Act does not receive the vote necessary for immediate effect, this |
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| 76 | 76 | | Act takes effect September 1, 2015. |
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