84R5714 CJC-F
By: Seliger S.B. No. 1515
A BILL TO BE ENTITLED
AN ACT
relating to the temporary exemption of certain tangible personal
property related to a data center from the state sales and use tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 151.359(a)(2), (3), (5), (7), and (8),
Tax Code, are amended to read as follows:
(2) "Data center" means all or part of a new or
redeveloped facility that [at least 100,000 square feet of space in
a single building or portion of a single building, which space]:
(A) is located in this state;
(B) is composed of one or more buildings and
related improvements specifically constructed or refurbished,
repaired, restored, remodeled, or otherwise modified and actually
used primarily to house servers and related equipment and support
staff for the processing, storage, and distribution of data;
(C) is designed for use [used] by one or more [a
single] qualifying occupants [occupant] for the processing,
storage, and distribution of data;
(D) is not used primarily by a telecommunications
provider to place tangible personal property that is used to
deliver telecommunications services; and
(E) has an uninterruptible power source,
generator backup power, a sophisticated fire suppression and
prevention system, and enhanced physical security that includes
restricted access, video surveillance, and electronic systems.
(3) "Permanent job" means an employment position that
will exist for at least three [five] years after the date the job is
created.
(5) "Qualifying job" means a full-time, permanent job
that pays at least [120 percent of] the county average weekly wage
in the county in which the job is based.
(7) "Qualifying owner" means a person who owns the
building or buildings in which a qualifying data center is
located. A qualifying owner may also be the qualifying operator.
(8) "Qualifying occupant" means a person who:
(A) contracts with a qualifying owner or
qualifying operator:
(i) for at least one megawatt of critical IT
load per month for a period of at least two years; and
(ii) to place, or cause to be placed, and to
use tangible personal property at the qualifying data center; or
(B) in the case of a qualifying occupant who is
also the qualifying owner and the qualifying operator, places or
causes to be placed, and uses tangible personal property at the
qualifying data center.
SECTION 2. Section 151.359, Tax Code, is amended by
amending Subsections (c), (d), (e), and (f) and adding Subsections
(e-1) and (l) to read as follows:
(c) The exemption provided by this section does not apply
to:
(1) office equipment or supplies;
(2) maintenance or janitorial supplies or equipment;
(3) equipment or supplies used primarily in sales
activities or transportation activities;
(4) tangible personal property on which the purchaser
has received or has a pending application for a refund under Section
151.429;
(5) tangible personal property not otherwise exempted
under Subsection (b) that is incorporated into real estate or into
an improvement of real estate;
(6) tangible personal property that is rented or
leased for a term of one year or less; or
(7) notwithstanding Section 151.3111, a taxable
service that is performed on tangible personal property exempted
under this section, other than a charge for labor to install or
maintain tangible personal property described by Subsection (b)
that is separately itemized.
(d) Subject to Subsection (k), a data center may be
certified by the comptroller as a qualifying data center for
purposes of this section if, on or after September 1, 2013, [:
[(1) a single qualifying occupant:
[(A) contracts with a qualifying owner or
qualifying operator to lease space in which the qualifying occupant
will locate a data center; or
[(B) occupies a space that was not previously
used as a data center in which the qualifying occupant will locate a
data center, in the case of a qualifying occupant who is also the
qualifying operator and the qualifying owner; and
[(2)] the qualifying owner, qualifying operator, or
qualifying occupants of the data center [occupant], jointly or
independently:
(1) create [(A) creates] at least five [20]
qualifying jobs in the county in which the data center is located,
not including jobs moved from one county in this state to another
county in this state; and
(2) make or agree [(B) makes or agrees] to make a
capital investment, on or after September 1, 2013, of at least $100
[$200] million in that particular data center over a five-year
period beginning on the date the data center is certified by the
comptroller as a qualifying data center.
(e) A data center that is eligible under Subsection (d) to
be certified by the comptroller as a qualified data center shall
apply to the comptroller for certification as a qualifying data
center and for issuance of a registration number or numbers by the
comptroller. The application must be made on a form prescribed by
the comptroller and include the information required by the
comptroller. The application must include the name and contact
information for each [the] qualifying occupant, if any, as of the
date on which the application is filed with the comptroller, and [,
if applicable,] the name and contact information for the qualifying
owner and, if applicable, the qualifying operator who will claim
the exemption authorized under this section. The application form
must include a section for the applicant to certify that the capital
investment required by Subsection (d)(2) [Subsection (d)(2)(B)]
will be met independently or jointly by the [qualifying occupant,]
qualifying owner, [or] qualifying operator, or qualifying
occupants within the time period prescribed by that subsection
[Subsection (d)(2)(B)].
(e-1) A person who is not listed as a qualifying occupant on
an application filed under Subsection (e) may submit an application
to the comptroller for a registration number in relation to a
certified qualifying data center on a form prescribed by the
comptroller. The comptroller shall issue the registration number
to the applicant on receipt of information sufficient for the
comptroller to determine that the applicant is a qualifying
occupant of the certified qualifying data center.
(f) The exemption provided by this section begins on the
date the data center is certified by the comptroller as a qualifying
data center and expires:
(1) on the 10th anniversary of that date, if the
qualifying owner, qualifying operator [occupant, qualifying
owner], or qualifying occupants, [operator] independently or
jointly, make [makes] a capital investment of at least $100 [$200]
million but less than $150 [$250] million as provided by Subsection
(d)(2) [Subsection (d)(2)(B)]; or
(2) on the 15th anniversary of that date, if the
qualifying owner, qualifying operator [occupant, qualifying
owner], or qualifying occupants, [operator] independently or
jointly, make [makes] a capital investment of $150 [$250] million
or more as provided by Subsection (d)(2) [Subsection (d)(2)(B)].
(l) A qualifying owner, qualifying operator, or qualifying
occupant of a qualifying data center may apply to the comptroller
for a refund of the taxes imposed by this chapter paid on the
purchase of an item of tangible personal property described by
Subsection (b) that occurred before the date the qualifying data
center is certified by the comptroller if the item was purchased
after the earlier of:
(1) the date the data center submits the application
described by Subsection (e); or
(2) the 180th day before the date the data center is
certified by the comptroller.
SECTION 3. The changes in law made by this Act apply to a
data center certified as a qualifying data center by the
comptroller of public accounts, regardless of whether the
certification occurred before, on, or after the effective date of
this Act.
SECTION 4. This Act takes effect September 1, 2015.