| 1 | 1 | | 87R1081 SMT-D |
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| 2 | 2 | | By: Sanford H.B. No. 3573 |
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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 exclusion of certain payment processing services |
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| 8 | 8 | | from the definition of "data processing service" for purposes of |
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| 9 | 9 | | sales and use 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 151.0035, Tax Code, is amended to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | Sec. 151.0035. "DATA PROCESSING SERVICE". (a) "Data |
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| 14 | 14 | | processing service" includes word processing, data entry, data |
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| 15 | 15 | | retrieval, data search, information compilation, payroll and |
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| 16 | 16 | | business accounting data production, the performance of a |
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| 17 | 17 | | totalisator service with the use of computational equipment |
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| 18 | 18 | | required by Subtitle A-1, Title 13, Occupations Code (Texas Racing |
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| 19 | 19 | | Act), and other computerized data and information storage or |
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| 20 | 20 | | manipulation. "Data processing service" also includes the use of a |
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| 21 | 21 | | computer or computer time for data processing whether the |
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| 22 | 22 | | processing is performed by the provider of the computer or computer |
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| 23 | 23 | | time or by the purchaser or other beneficiary of the service. |
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| 24 | 24 | | (b) "Data processing service" does not include: |
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| 25 | 25 | | (1) the transcription of medical dictation by a |
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| 26 | 26 | | medical transcriptionist; or |
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| 27 | 27 | | (2) the processing of a payment made by credit card or |
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| 28 | 28 | | debit card. |
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| 29 | 29 | | (c) "Data storage," as used in this section, does not |
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| 30 | 30 | | include a classified advertisement, banner advertisement, vertical |
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| 31 | 31 | | advertisement, or link when the item is displayed on an Internet |
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| 32 | 32 | | website owned by another person. |
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| 33 | 33 | | SECTION 2. The changes in law made by this Act do not affect |
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| 34 | 34 | | tax liability accruing before the effective date of this Act. That |
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| 35 | 35 | | liability continues in effect as if this Act had not been enacted, |
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| 36 | 36 | | and the former law is continued in effect for the collection of |
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| 37 | 37 | | taxes due and for civil and criminal enforcement of the liability |
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| 38 | 38 | | for those taxes. |
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| 39 | 39 | | SECTION 3. This Act takes effect September 1, 2021. |
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