Texas 2019 - 86th Regular

Texas House Bill HB3787 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~86R23025~~ GRM-F
	1	+	86R11371 GRM-F
2	2		By: Sanford H.B. No. 3787
3		-	Substitute the following for H.B. No. 3787:
4		-	By: Shaheen C.S.H.B. No. 3787
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to the application of the sales and use tax to certain
10	8		property and services.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12		-	SECTION 1. Section 151.0028, Tax Code, is amended by adding
13		-	Subsection (c) to read as follows:
	10	+	SECTION 1. Section 151.0028, Tax Code, is amended by
	11	+	amending Subsection (b) and adding Subsection (c) to read as
	12	+	follows:
	13	+	(b) "Amusement services" includes:
	14	+	(1) membership in a private club or organization that
	15	+	provides entertainment, recreational, sports, dining, or social
	16	+	facilities to its members; and
	17	+	(2) an admission or ticket to an amusement service.
14	18		(c) "Amusement services" does not include services provided
15	19		through coin-operated machines that are operated by the consumer.
16	20		SECTION 2. Section 151.0045, Tax Code, is amended to read as
17	21		follows:
18	22		Sec. 151.0045. "PERSONAL SERVICES". "Personal services"
19	23		means those personal services listed as personal services under
20	24		Group 721, Major Group 72 of the Standard Industrial Classification
21	25		Manual, 1972, and includes massage parlors, escort services, and
22	26		Turkish baths under Group 729 of said manual but does not include
23	27		any other services listed under Group 729 unless otherwise covered
24	28		under this chapter [Act], prepared by the statistical policy
25	29		division of the office on management and budget, office of the
26	30		president of the United States. The term does not include services
27	31		provided through coin-operated machines that are operated by the
28	32		consumer.
29	33		SECTION 3. Section 151.006, Tax Code, is amended by
30	34		amending Subsections (a) and (c) and adding Subsection (e) to read
31	35		as follows:
32	36		(a) "Sale for resale" means a sale of:
33	37		(1) tangible personal property or a taxable service to
34	38		a purchaser who acquires the property or service for the purpose of
35	39		reselling it [with or] as a taxable item as defined by Section
36	40		151.010 in the United States of America or a possession or territory
37	41		of the United States of America or in the United Mexican States in
38	42		the normal course of business in the form or condition in which it
39	43		is acquired or as an attachment to or integral part of other
40	44		tangible personal property or taxable service;
41	45		(2) tangible personal property to a purchaser for the
42	46		sole purpose of the purchaser's leasing or renting it in the United
43	47		States of America or a possession or territory of the United States
44	48		of America or in the United Mexican States in the normal course of
45	49		business to another person, but not if incidental to the leasing or
46	50		renting of real estate;
47	51		(3) tangible personal property to a purchaser who
48	52		acquires the property for the purpose of transferring it in the
49	53		United States of America or a possession or territory of the United
50	54		States of America or in the United Mexican States as an integral
51	55		part of a taxable service;
52	56		(4) a taxable service performed on tangible personal
53	57		property that is held for sale by the purchaser of the taxable
54	58		service; or
55	59		(5) [except as provided by Subsection (c),] tangible
56	60		personal property or a taxable service to a purchaser who acquires
57	61		the property or service for the purpose of transferring it as an
58	62		integral part of performing a contract, or a subcontract of a
59		-	contract, for the sale~~, other than the lease or rental,~~ of tangible
60		-	~~personal property with an entity~~ or organization exempted from the
61		-	~~taxes imposed by this chapter~~ under Section 151.309 or 151.310 [the
62		-	~~federal government] only if~~ the purchaser:
	63	+	contract, for the sale of tangible personal property with an entity
	64	+	or organization exempted from the taxes imposed by this chapter
	65	+	under Section 151.309 or 151.310 [the federal government] only if
	66	+	the purchaser:
63	67		(A) allocates and bills to the contract the cost
64	68		of the property or service as a direct or indirect cost; and
65	69		(B) transfers title to the property to the exempt
66	70		entity or organization [federal government] under the contract and
67	71		any applicable [federal] acquisition regulations.
68	72		(c) A sale for resale does not include the sale of tangible
69	73		personal property or a taxable service to a purchaser who acquires
70		-	the property or service for the purpose of performing a service not
71		-	listed as a taxable service under Section 151.0101 [service that is
72		-	not taxed under this chapter], regardless of whether title
73		-	transfers to the service provider's customer, unless the tangible
74		-	personal property or taxable service is purchased for the purpose
75		-	of performing [reselling it to the United States in] a contract, or
76		-	a subcontract of a contract, for a service, including a taxable
77		-	service under Section 151.0101, with any branch of the Department
78		-	of Defense, Department of Homeland Security, Department of Energy,
79		-	National Aeronautics and Space Administration, Central
80		-	Intelligence Agency, National Security Agency, National Oceanic
81		-	and Atmospheric Administration, or National Reconnaissance Office
82		-	to the extent allocated and billed to the contract with the federal
83		-	government.
	74	+	the property or service for the purpose of performing a contract, or
	75	+	a subcontract of a contract, for a service not listed as a taxable
	76	+	service under Section 151.0101 [service that is not taxed under
	77	+	this chapter], regardless of whether title transfers to the service
	78	+	provider's customer, unless the tangible personal property or
	79	+	taxable service is purchased for the purpose of reselling it to the
	80	+	United States in a contract, or a subcontract of a contract, with
	81	+	any branch of the Department of Defense, Department of Homeland
	82	+	Security, Department of Energy, National Aeronautics and Space
	83	+	Administration, Central Intelligence Agency, National Security
	84	+	Agency, National Oceanic and Atmospheric Administration, or
	85	+	National Reconnaissance Office to the extent allocated and billed
	86	+	to the contract with the federal government.
84	87		(e) A sale for resale does not include the sale of tangible
85	88		personal property to a purchaser who acquires the property for the
86	89		purpose of using, consuming, or expending it in, or incorporating
87	90		it into, an oil or gas well in the performance of an oil well service
88	91		taxable under Chapter 191.
89		-	SECTION 4. Section 151.338, Tax Code, is amended to read as
	92	+	SECTION 4. Section 151.302, Tax Code, is amended by adding
	93	+	Subsection (b-1) to read as follows:
	94	+	(b-1) A taxable service used to perform a taxable service is
	95	+	not considered resold unless the purchaser acquires the service for
	96	+	the purpose of transferring it as an integral part of performing a
	97	+	taxable service.
	98	+	SECTION 5. Section 151.338, Tax Code, is amended to read as
90	99		follows:
91	100		Sec. 151.338. ENVIRONMENT AND CONSERVATION SERVICES. (a)
92	101		Subject to Subsections (b) and (c), labor to [The services involved
93	102		in the] repair, remodel, maintain, or restore [remodeling,
94	103		maintenance, or restoration of] tangible personal property is
95	104		exempted from the taxes imposed by [are not taxable under] this
96	105		chapter if:
97	106		(1) the repair, remodeling, maintenance, or
98	107		restoration is required by statute, ordinance, order, rule, or
99	108		regulation of any commission, agency, court, or political,
100	109		governmental, or quasi-governmental entity in order to protect the
101	110		environment or to conserve energy; and
102	111		(2) the charge for the labor is itemized separately
103	112		from the charge for materials furnished.
104	113		(b) The exemption provided by Subsection (a) does not apply
105	114		to the charge for materials furnished by the service provider to the
106	115		purchaser as part of the service.
107	116		(c) Sixty-five percent of a lump-sum charge for labor and
108	117		materials to repair, remodel, maintain, or restore tangible
109	118		personal property is exempted from the taxes imposed by this
110	119		chapter if:
111	120		(1) the repair, remodeling, maintenance, or
112	121		restoration is required under the circumstances described by
113	122		Subsection (a)(1); and
114	123		(2) the labor and materials are purchased for a health
115	124		care facility, as defined by Section 108.002, Health and Safety
116	125		Code, or for an oncology center.
117		-	SECTION 5. Section 151.335, Tax Code, is repealed.
118		-	SECTION 6. The amendments made by this Act are a
	126	+	SECTION 6. Section 151.335, Tax Code, is repealed.
	127	+	SECTION 7. The amendments made by this Act are a
119	128		clarification of existing law and do not imply that existing law may
120	129		be construed as inconsistent with the law as amended by this Act.
121		-	SECTION 7. This Act takes effect immediately if it receives
	130	+	SECTION 8. This Act takes effect immediately if it receives
122	131		a vote of two-thirds of all the members elected to each house, as
123	132		provided by Section 39, Article III, Texas Constitution. If this
124	133		Act does not receive the vote necessary for immediate effect, this
125	134		Act takes effect October 1, 2019.