Texas 2017 - 85th Regular

Texas House Bill HB343 Compare Versions

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

Old	New	Differences
1	1	85R256 ADM-F
2	2	By: Canales H.B. No. 343
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a sales and use tax exemption for certain disabled
8	8	veterans and surviving spouses of certain disabled veterans.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
11	11	by adding Section 151.360 to read as follows:
12	12	Sec. 151.360. PURCHASES BY CERTAIN DISABLED VETERANS OR
13	13	SURVIVING SPOUSES. (a) A taxable item sold, leased, or rented to,
14	14	or stored, used, or consumed by, any of the following persons is
15	15	exempted from the taxes imposed by this chapter:
16	16	(1) a person who holds a registration number issued
17	17	under this section; or
18	18	(2) a member of the household where a person described
19	19	by Subdivision (1) resides, if the purchase, lease, rental, or
20	20	other consumption is for the benefit of the person, and if the
21	21	household member is authorized to make purchases on the person's
22	22	behalf.
23	23	(b) To claim an exemption under Subsection (a), the
24	24	purchaser must state a registration number issued by the
25	25	comptroller under this section on the exemption certificate
26	26	provided by the purchaser of the item.
27	27	(c) A person is eligible to receive a registration number
28	28	if:
29	29	(1) the person:
30	30	(A) is a resident of this state;
31	31	(B) enlisted in any branch of the armed forces of
32	32	the United States, including the Texas National Guard, and received
33	33	an honorable discharge; and
34	34	(C) has been certified by the United States
35	35	Department of Veterans Affairs or its successor to be in receipt of
36	36	disability compensation at the 100 percent rate as a result of a
37	37	permanent disability that:
38	38	(i) was sustained through military action
39	39	or accident; or
40	40	(ii) resulted from disease contracted while
41	41	in active service; or
42	42	(2) the person is the surviving spouse of a person
43	43	described by Subdivision (1), the person described by Subdivision
44	44	(1) is deceased, and the surviving spouse is not remarried.
45	45	(d) A person who is eligible for a registration number under
46	46	Subsection (c) may apply to the comptroller for the number. The
47	47	application must:
48	48	(1) be on a form prescribed by the comptroller; and
49	49	(2) contain any other information required by the
50	50	comptroller.
51	51	(e) The comptroller shall develop and implement a procedure
52	52	by which an applicant may submit an application described by
53	53	Subsection (d) electronically.
54	54	(f) The comptroller by rule shall establish a uniform date
55	55	on which all registration numbers issued under this section must be
56	56	renewed, regardless of the date on which a registration number is
57	57	initially issued. The rules must require registration numbers to
58	58	be renewed every four years.
59	59	(g) The comptroller may not issue a registration number that
60	60	contains the applicant's social security number.
61	61	(h) The comptroller, after written notice and a hearing, may
62	62	revoke the registration number issued to a person who fails to
63	63	comply with this chapter or a rule adopted under this chapter, or
64	64	who is no longer eligible for a registration number. A person whose
65	65	registration number the comptroller proposes to revoke under this
66	66	section is entitled to 20 days' written notice of the time and place
67	67	of the hearing on the revocation. The notice must state the reason
68	68	the comptroller is seeking to revoke the person's registration
69	69	number. At the hearing the person must show cause why the person's
70	70	registration number should not be revoked.
71	71	(i) The comptroller shall give written notice of the
72	72	revocation of a registration number under Subsection (h) to the
73	73	person to whom the number was issued. The notice may be personally
74	74	served on the person or sent by mail to the person's address as
75	75	shown in the comptroller's records.
76	76	(j) If the comptroller revokes a person's registration
77	77	number under Subsection (h), the comptroller may not revive the
78	78	registration number unless the comptroller is satisfied that the
79	79	person will comply with this chapter and the rules adopted under
80	80	this chapter. The comptroller may prescribe the terms under which a
81	81	revoked registration number may be revived.
82	82	(k) Following the revocation of a registration number by the
83	83	comptroller, the person who held the registration number must, on
84	84	the next transaction with a seller to whom the person previously
85	85	provided an exemption certificate with a registration number,
86	86	notify that seller that the person's registration number is no
87	87	longer valid. The failure of a person to notify a seller as
88	88	required by this subsection is considered a failure and refusal to
89	89	pay the taxes imposed by this chapter by the person required to make
90	90	the notification.
91	91	(l) The comptroller shall develop and operate an online
92	92	system to enable a seller to search and verify the validity of the
93	93	registration number stated on an exemption certificate. A seller
94	94	is not required to use the online system.
95	95	(m) An exemption certificate that states a registration
96	96	number issued by the comptroller to claim an exemption to which this
97	97	section applies is sufficient documentation of the seller's receipt
98	98	of the certificate in good faith for purposes of Sections 151.054
99	99	and 151.104.
100	100	(n) The comptroller by rule shall establish procedures by
101	101	which a seller may accept a blanket exemption certificate with a
102	102	registration number issued by the comptroller to claim exemptions
103	103	under this section.
104	104	(o) A person eligible for a registration number who, at the
105	105	time of purchasing, leasing, renting, or otherwise consuming an
106	106	item for which the person may otherwise claim an exemption, has not
107	107	obtained a registration number from the comptroller must pay the
108	108	tax on the item to the seller at the time of the transaction. The
109	109	person may then apply for a registration number and, on receipt of
110	110	the number, may apply to the comptroller for a refund of the tax
111	111	paid, subject to the statute of limitations. The comptroller by
112	112	rule shall establish procedures for processing the refund requests.
113	113	Tax collected by a seller as described by this subsection is not tax
114	114	collected in error, and Section 111.104 does not apply to a refund
115	115	request submitted under this subsection.
116	116	(p) The comptroller may adopt rules to implement this
117	117	section.
118	118	SECTION 2. The change in law made by this Act does not
119	119	affect tax liability accruing before the effective date of this
120	120	Act. That liability continues in effect as if this Act had not been
121	121	enacted, and the former law is continued in effect for the
122	122	collection of taxes due and for civil and criminal enforcement of
123	123	the liability for those taxes.
124	124	SECTION 3. This Act takes effect September 1, 2017.