Texas 2017 - 85th Regular

Texas Senate Bill SB745 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Kolkhorst S.B. No. 745
2		-	(Murphy)
	1	+	S.B. No. 745
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the exemption of certain services performed by certain
8	6		employees from the sales and use tax.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 151.057, Tax Code, is transferred to
11	9		Subchapter H, Chapter 151, Tax Code, redesignated as Section
12	10		151.3503, Tax Code, and amended to read as follows:
13	11		Sec. 151.3503 [151.057]. SERVICES BY EMPLOYEES. (a) The
14	12		following [services] are exempted from the taxes imposed by [not
15	13		taxable under] this chapter:
16	14		(1) a service performed by an employee for the
17	15		employee's [his] employer in the regular course of business, within
18	16		the scope of the employee's duties, and for which the employee is
19	17		paid [his] regular wages or salary;
20	18		(2) a service performed by an employee of a temporary
21	19		employment service [as defined by Section 93.001, Labor Code,] for
22	20		a host [an] employer to supplement the host employer's existing
23	21		work force on a temporary basis, if:
24	22		(A) [when] the service is normally performed by
25	23		the host employer's own employees;
26	24		(B) [,] the host employer provides all supplies
27	25		and equipment necessary to perform the service, other than personal
28	26		protective equipment provided by the temporary employment service
29	27		pursuant to a federal law or regulation;
30	28		(C) the host employer does not rent, lease,
31	29		purchase, or otherwise acquire for use the supplies and equipment
32	30		described by Paragraph (B), other than the personal protective
33	31		equipment described by that paragraph, from the temporary
34	32		employment service or an entity that is a member of an affiliated
35	33		group of which the temporary employment service is also a member;
36	34		[,] and
37	35		(D) the host employer has the sole right to
38	36		supervise, direct, and control the work performed by the employee
39	37		of the temporary employment service as necessary to conduct the
40	38		host employer's business or to comply with any licensing,
41	39		statutory, or regulatory requirement applicable to the host [help
42	40		is under the direct or general supervision of the] employer [to whom
43	41		the help is furnished]; or
44	42		(3) a service performed by covered employees of a
45	43		professional employer organization, either licensed under Chapter
46	44		91, Labor Code, or exempt from the licensing requirements of that
47	45		chapter, for a client under a written contract that provides for
48	46		shared employment responsibilities between the professional
49	47		employer organization and the client for the covered employees,
50	48		most of whom must have been previously employed by the client.
51	49		(b) The comptroller shall prescribe by rule the minimum
52	50		percentage of covered employees that must have been previously
53	51		employed by the client, the minimum time period the covered
54	52		employees must have been employed by the client prior to the
55	53		commencement of its contract, and such other criteria as the
56	54		comptroller may deem necessary to properly implement Subsection
57	55		(a)(3) [this section].
58	56		(c) In this section:
59	57		(1) "Affiliated group" has the meaning assigned by
60	58		Section 171.0001.
61	59		(2) "Host employer" means the employer who owns,
62	60		manages, or controls the property or worksite where an employee of a
63	61		temporary employment service performs a service.
64	62		(3) "Temporary employment service" has the meaning
65	63		assigned by Section 93.001, Labor Code.
66	64		SECTION 2. The changes in law made by this Act apply only to
67	65		a service commenced on or after the effective date of this Act. A
68	66		service commenced before that date is governed by the law in effect
69	67		on the date the service was commenced, and the former law is
70	68		continued in effect for that purpose.
71	69		SECTION 3. This Act takes effect September 1, 2017.
	70	+	______________________________ ______________________________
	71	+	President of the Senate Speaker of the House
	72	+	I hereby certify that S.B. No. 745 passed the Senate on
	73	+	April 3, 2017, by the following vote: Yeas 31, Nays 0.
	74	+	______________________________
	75	+	Secretary of the Senate
	76	+	I hereby certify that S.B. No. 745 passed the House on
	77	+	May 24, 2017, by the following vote: Yeas 146, Nays 0, two
	78	+	present not voting.
	79	+	______________________________
	80	+	Chief Clerk of the House
	81	+	Approved:
	82	+	______________________________
	83	+	Date
	84	+	______________________________
	85	+	Governor