| 1 | 1 | | 85R955 GRM-F |
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| 2 | 2 | | By: Metcalf H.B. No. 105 |
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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 exclusion of Internet access service from the sales |
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| 8 | 8 | | 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 151.00394(b), Tax Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (b) "Internet access service" does not include [and the |
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| 13 | 13 | | exemption under Section 151.325 does not apply to] any [other] |
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| 14 | 14 | | taxable service listed in Section 151.0101(a), unless the taxable |
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| 15 | 15 | | service is provided in conjunction with and is merely incidental to |
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| 16 | 16 | | the provision of Internet access service. |
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| 17 | 17 | | SECTION 2. Section 151.0101(a), Tax Code, is amended to |
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| 18 | 18 | | read as follows: |
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| 19 | 19 | | (a) "Taxable services" means: |
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| 20 | 20 | | (1) amusement services; |
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| 21 | 21 | | (2) cable television services; |
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| 22 | 22 | | (3) personal services; |
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| 23 | 23 | | (4) motor vehicle parking and storage services; |
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| 24 | 24 | | (5) the repair, remodeling, maintenance, and |
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| 25 | 25 | | restoration of tangible personal property, except: |
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| 26 | 26 | | (A) aircraft; |
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| 27 | 27 | | (B) a ship, boat, or other vessel, other than: |
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| 28 | 28 | | (i) a taxable boat or motor as defined by |
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| 29 | 29 | | Section 160.001; |
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| 30 | 30 | | (ii) a sports fishing boat; or |
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| 31 | 31 | | (iii) any other vessel used for pleasure; |
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| 32 | 32 | | (C) the repair, maintenance, and restoration of a |
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| 33 | 33 | | motor vehicle; and |
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| 34 | 34 | | (D) the repair, maintenance, creation, and |
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| 35 | 35 | | restoration of a computer program, including its development and |
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| 36 | 36 | | modification, not sold by the person performing the repair, |
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| 37 | 37 | | maintenance, creation, or restoration service; |
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| 38 | 38 | | (6) telecommunications services; |
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| 39 | 39 | | (7) credit reporting services; |
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| 40 | 40 | | (8) debt collection services; |
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| 41 | 41 | | (9) insurance services; |
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| 42 | 42 | | (10) information services; |
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| 43 | 43 | | (11) real property services; |
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| 44 | 44 | | (12) data processing services; |
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| 45 | 45 | | (13) real property repair and remodeling; |
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| 46 | 46 | | (14) security services; |
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| 47 | 47 | | (15) telephone answering services; and |
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| 48 | 48 | | (16) [Internet access service; and |
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| 49 | 49 | | [(17)] a sale by a transmission and distribution |
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| 50 | 50 | | utility, as defined in Section 31.002, Utilities Code, of |
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| 51 | 51 | | transmission or delivery of service directly to an electricity |
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| 52 | 52 | | end-use customer whose consumption of electricity is subject to |
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| 53 | 53 | | taxation under this chapter. |
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| 54 | 54 | | SECTION 3. Section 151.325, Tax Code, is repealed. |
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| 55 | 55 | | SECTION 4. The change in law made by this Act does not |
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| 56 | 56 | | affect tax liability accruing before the effective date of this |
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| 57 | 57 | | Act. That liability continues in effect as if this Act had not been |
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| 58 | 58 | | enacted, and the former law is continued in effect for the |
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| 59 | 59 | | collection of taxes due and for civil and criminal enforcement of |
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| 60 | 60 | | the liability for those taxes. |
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| 61 | 61 | | SECTION 5. This Act takes effect September 1, 2017. |
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