| 1 | 1 | | 87R7541 SMT-D |
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| 2 | 2 | | By: Howard H.B. No. 2663 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the rate of state sales and use taxes imposed on certain |
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| 8 | 8 | | personal services and the use of a portion of the revenue from those |
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| 9 | 9 | | taxes for sexual assault programs; increasing the rates of taxes. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 151.051, Tax Code, is amended by adding |
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| 12 | 12 | | Subsection (c) to read as follows: |
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| 13 | 13 | | (c) Notwithstanding Subsection (b), the sales tax rate is |
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| 14 | 14 | | 18.75 percent of the sales price of a taxable item sold that is a |
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| 15 | 15 | | personal service listed under Group 729 of the Standard Industrial |
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| 16 | 16 | | Classification Manual, 1972, as massage parlors, an escort service, |
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| 17 | 17 | | or Turkish baths. |
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| 18 | 18 | | SECTION 2. Section 151.0595(e), Tax Code, is amended to |
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| 19 | 19 | | read as follows: |
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| 20 | 20 | | (e) As soon as practicable after the end of a state fiscal |
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| 21 | 21 | | year, the comptroller shall determine the estimated average rate of |
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| 22 | 22 | | local sales and use taxes imposed in this state during the preceding |
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| 23 | 23 | | state fiscal year by: |
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| 24 | 24 | | (1) dividing the total amount of net local sales and |
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| 25 | 25 | | use taxes remitted to the comptroller under this section and Title 3 |
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| 26 | 26 | | during that state fiscal year by the total amount of net state sales |
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| 27 | 27 | | and use taxes remitted to the comptroller under this chapter during |
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| 28 | 28 | | that state fiscal year; |
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| 29 | 29 | | (2) multiplying the amount computed under Subdivision |
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| 30 | 30 | | (1) by the rate provided by Section 151.051(b) [151.051]; and |
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| 31 | 31 | | (3) rounding the amount computed under Subdivision (2) |
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| 32 | 32 | | to the nearest .0025. |
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| 33 | 33 | | SECTION 3. Subchapter M, Chapter 151, Tax Code, is amended |
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| 34 | 34 | | by adding Section 151.805 to read as follows: |
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| 35 | 35 | | Sec. 151.805. USE OF CERTAIN REVENUE FOR SEXUAL ASSAULT |
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| 36 | 36 | | PROGRAMS. Notwithstanding Section 151.801(a), an amount equal to |
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| 37 | 37 | | the proceeds from the collection of sales and use taxes imposed on |
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| 38 | 38 | | the sale or use of personal services described by Section |
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| 39 | 39 | | 151.051(c) at a rate of 12.5 percent shall be deposited to the |
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| 40 | 40 | | credit of the sexual assault prevention and crisis services fund |
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| 41 | 41 | | established under Section 420.007, Government Code. |
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| 42 | 42 | | SECTION 4. The change in law made by this Act does not |
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| 43 | 43 | | affect tax liability accruing before the effective date of this |
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| 44 | 44 | | Act. That liability continues in effect as if this Act had not been |
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| 45 | 45 | | enacted, and the former law is continued in effect for the |
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| 46 | 46 | | collection of taxes due and for civil and criminal enforcement of |
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| 47 | 47 | | the liability for those taxes. |
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| 48 | 48 | | SECTION 5. This Act takes effect October 1, 2021. |
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