Texas 2017 - 85th Regular

Texas House Bill HB4052 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		85R14120 ADM-F
2	2		By: Murphy H.B. No. 4052
	3	+	Substitute the following for H.B. No. 4052:
	4	+	By: Shine C.S.H.B. No. 4052
3	5
4	6
5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to the exemption of certain services performed by certain
8	10		employees from the sales and use tax.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Section 151.057, Tax Code, is transferred to
11	13		Subchapter H, Chapter 151, Tax Code, redesignated as Section
12	14		151.3503, Tax Code, and amended to read as follows:
13	15		Sec. 151.3503 [151.057]. SERVICES BY EMPLOYEES. (a) The
14	16		following [services] are exempted from the taxes imposed by [not
15	17		taxable under] this chapter:
16	18		(1) a service performed by an employee for the
17	19		employee's [his] employer in the regular course of business, within
18	20		the scope of the employee's duties, and for which the employee is
19	21		paid [his] regular wages or salary;
20	22		(2) a service performed by an employee of a temporary
21	23		employment service [as defined by Section 93.001, Labor Code,] for
22	24		a host [an] employer to supplement the host employer's existing
23	25		work force on a temporary basis, if:
24	26		(A) [when] the service is normally performed by
25	27		the host employer's own employees;
26	28		(B) [,] the host employer provides all supplies
27	29		and equipment necessary to perform the service, other than personal
28	30		protective equipment provided by the temporary employment service
29	31		pursuant to a federal law or regulation;
30	32		(C) the host employer does not rent, lease,
31	33		purchase, or otherwise acquire for use the supplies and equipment
32	34		described by Paragraph (B), other than the personal protective
33	35		equipment described by that paragraph, from the temporary
34	36		employment service or an entity that is a member of an affiliated
35	37		group of which the temporary employment service is also a member;
36	38		[,] and
37	39		(D) the host employer has the sole right to
38	40		supervise, direct, and control the work performed by the employee
39	41		of the temporary employment service as necessary to conduct the
40	42		host employer's business or to comply with any licensing,
41	43		statutory, or regulatory requirement applicable to the host [help
42	44		is under the direct or general supervision of the] employer [to whom
43	45		the help is furnished]; or
44	46		(3) a service performed by covered employees of a
45	47		professional employer organization, either licensed under Chapter
46	48		91, Labor Code, or exempt from the licensing requirements of that
47	49		chapter, for a client under a written contract that provides for
48	50		shared employment responsibilities between the professional
49	51		employer organization and the client for the covered employees,
50	52		most of whom must have been previously employed by the client.
51	53		(b) The comptroller shall prescribe by rule the minimum
52	54		percentage of covered employees that must have been previously
53	55		employed by the client, the minimum time period the covered
54	56		employees must have been employed by the client prior to the
55	57		commencement of its contract, and such other criteria as the
56	58		comptroller may deem necessary to properly implement Subsection
57	59		(a)(3) [this section].
58	60		(c) In this section:
59	61		(1) "Affiliated group" has the meaning assigned by
60	62		Section 171.0001.
61	63		(2) "Host employer" means the employer who owns,
62	64		manages, or controls the property or worksite where an employee of a
63	65		temporary employment service performs a service.
64	66		(3) "Temporary employment service" has the meaning
65	67		assigned by Section 93.001, Labor Code.
66	68		SECTION 2. The changes in law made by this Act apply only to
67	69		a service commenced on or after the effective date of this Act. A
68	70		service commenced before that date is governed by the law in effect
69	71		on the date the service was commenced, and the former law is
70	72		continued in effect for that purpose.
71	73		SECTION 3. This Act takes effect September 1, 2017.