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