Texas 2017 - 85th Regular

Texas House Bill HB3366 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R12999 CJC-F
2	2	By: Bohac H.B. No. 3366
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the application of the sales and use tax to certain
8	8	property and services.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 151.0028, Tax Code, is amended by
11	11	amending Subsection (b) and adding Subsection (c) to read as
12	12	follows:
13	13	(b) "Amusement services" includes:
14	14	(1) membership in a private club or organization that
15	15	provides entertainment, recreational, sports, dining, or social
16	16	facilities to its members; and
17	17	(2) the purchase of an admission through the use of a
18	18	coin-operated machine.
19	19	(c) Notwithstanding Subsection (b), "amusement services"
20	20	does not include services provided through coin-operated machines
21	21	that are operated by the consumer.
22	22	SECTION 2. Section 151.0045, Tax Code, is amended to read as
23	23	follows:
24	24	Sec. 151.0045. "PERSONAL SERVICES". "Personal services"
25	25	means those personal services listed as personal services under
26	26	Group 721, Major Group 72 of the Standard Industrial Classification
27	27	Manual, 1972, and includes massage parlors, escort services, and
28	28	Turkish baths under Group 729 of said manual but does not include
29	29	any other services listed under Group 729 unless otherwise covered
30	30	under this chapter [Act], prepared by the statistical policy
31	31	division of the office on management and budget, office of the
32	32	president of the United States. The term does not include services
33	33	provided through coin-operated machines that are operated by the
34	34	consumer.
35	35	SECTION 3. Section 151.006, Tax Code, is amended by
36	36	amending Subsections (a) and (c) and adding Subsection (e) to read
37	37	as follows:
38	38	(a) "Sale for resale" means a sale of:
39	39	(1) tangible personal property or a taxable service to
40	40	a purchaser who acquires the property or service for the purpose of
41	41	reselling it [with or] as a taxable item as defined by Section
42	42	151.010 in the United States of America or a possession or territory
43	43	of the United States of America or in the United Mexican States in
44	44	the normal course of business in the form or condition in which it
45	45	is acquired or as an attachment to or integral part of other
46	46	tangible personal property or taxable service;
47	47	(2) tangible personal property to a purchaser for the
48	48	sole purpose of the purchaser's leasing or renting it in the United
49	49	States of America or a possession or territory of the United States
50	50	of America or in the United Mexican States in the normal course of
51	51	business to another person, but not if incidental to the leasing or
52	52	renting of real estate;
53	53	(3) tangible personal property to a purchaser who
54	54	acquires the property for the purpose of transferring it in the
55	55	United States of America or a possession or territory of the United
56	56	States of America or in the United Mexican States as an integral
57	57	part of a taxable service;
58	58	(4) a taxable service performed on tangible personal
59	59	property that is held for sale by the purchaser of the taxable
60	60	service; or
61	61	(5) except as provided by Subsection (c), tangible
62	62	personal property to a purchaser who acquires the property for the
63	63	purpose of transferring it as an integral part of performing a
64	64	contract, or a subcontract of a contract, with an entity or
65	65	organization exempted from the taxes imposed by this chapter under
66	66	Section 151.309 or 151.310 [the federal government] only if the
67	67	purchaser:
68	68	(A) allocates and bills to the contract the cost
69	69	of the property as a direct or indirect cost; and
70	70	(B) transfers title to the property to the exempt
71	71	entity or organization [federal government] under the contract and
72	72	applicable [federal] acquisition regulations.
73	73	(c) A sale for resale does not include the sale of tangible
74	74	personal property or a taxable service to a purchaser who acquires
75	75	the property or service for the purpose of performing a contract, or
76	76	a subcontract of a contract, with an entity or organization
77	77	exempted from the taxes imposed by this chapter under Section
78	78	151.309 or 151.310 [service that is not taxed under this chapter],
79	79	regardless of whether title transfers to the service provider's
80	80	customer, unless the tangible personal property or taxable service
81	81	is purchased for the purpose of reselling it to the United States in
82	82	a contract, or a subcontract of a contract, with any branch of the
83	83	Department of Defense, Department of Homeland Security, Department
84	84	of Energy, National Aeronautics and Space Administration, Central
85	85	Intelligence Agency, National Security Agency, National Oceanic
86	86	and Atmospheric Administration, or National Reconnaissance Office
87	87	to the extent allocated and billed to the contract with the federal
88	88	government.
89	89	(e) A sale for resale does not include the sale of tangible
90	90	personal property that will be used, consumed, or expended in, or
91	91	incorporated into, an oil or gas well by a purchaser who acquires
92	92	the property to perform an oil well service taxable under Chapter
93	93	191.
94	94	SECTION 4. Section 151.338, Tax Code, is amended to read as
95	95	follows:
96	96	Sec. 151.338. ENVIRONMENT AND CONSERVATION SERVICES. (a)
97	97	Subject to Subsection (b), labor to [The services involved in the]
98	98	repair, remodel, maintain, or restore [remodeling, maintenance, or
99	99	restoration of] tangible personal property is exempted from the
100	100	taxes imposed by [are not taxable under] this chapter if:
101	101	(1) the amount of the charge for labor is separately
102	102	itemized; and
103	103	(2) the repair, remodeling, maintenance, or
104	104	restoration is required by statute, ordinance, order, rule, or
105	105	regulation of any commission, agency, court, or political,
106	106	governmental, or quasi-governmental entity in order to protect the
107	107	environment or to conserve energy.
108	108	(b) The exemption provided by this section does not apply to
109	109	tangible personal property transferred by the service provider to
110	110	the purchaser as part of the service.
111	111	SECTION 5. Section 151.335, Tax Code, is repealed.
112	112	SECTION 6. The changes in law made by this Act do not affect
113	113	tax liability accruing before the effective date of this Act. That
114	114	liability continues in effect as if this Act had not been enacted,
115	115	and the former law is continued in effect for the collection of
116	116	taxes due and for civil and criminal enforcement of the liability
117	117	for those taxes.
118	118	SECTION 7. This Act takes effect October 1, 2017.