Texas 2021 - 87th Regular

Texas House Bill HB4467 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R10860 BEF-D
2	2	By: Martinez Fischer H.B. No. 4467
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to imposing a tax on certain revenue derived from digital
8	8	advertising services.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle G, Title 2, Tax Code, is amended by
11	11	adding Chapter 184 to read as follows:
12	12	CHAPTER 184. DIGITAL ADVERTISING TAX
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 184.0001. DEFINITIONS. In this chapter:
15	15	(1) "Assessable base" means the portion of gross
16	16	revenue derived from digital advertising services in this state.
17	17	(2) "Digital advertising services" means
18	18	advertisement services on a digital interface. The term includes
19	19	advertisements in the form of banner advertising, search engine
20	20	advertising, interstitial advertising, and other comparable
21	21	advertising services.
22	22	(3) "Digital interface" means any type of software,
23	23	including any part of an Internet website or application that a user
24	24	is able to access.
25	25	(4) "Gross revenue" means income or revenue from all
26	26	sources located anywhere in the world, before any expenses or
27	27	taxes, computed according to generally accepted accounting
28	28	principles.
29	29	(5) "Person" does not include an individual.
30	30	(6) "Reporting period" means the calendar year on
31	31	which a report is based.
32	32	(7) "User" means a person or individual who accesses a
33	33	digital interface with a device.
34	34	Sec. 184.0002. RULES. (a) The comptroller shall adopt
35	35	rules necessary to implement, administer, and enforce this chapter.
36	36	(b) The rules must include a method for determining the
37	37	portion of a person's gross revenue that is derived from digital
38	38	advertising services in this state. The method may include formulas
39	39	for apportioning any part of a person's gross revenue to this state
40	40	based on any person or individual's nexus with this state for the
41	41	purpose of taxation.
42	42	(c) The rules may include a requirement that a person make
43	43	periodic reports during a reporting period and pay estimated tax
44	44	amounts for each report.
45	45	SUBCHAPTER B. TAX
46	46	Sec. 184.0051. TAX IMPOSED. A tax is imposed on a person
47	47	whose:
48	48	(1) assessable base for the reporting period is at
49	49	least $1 million; and
50	50	(2) gross revenue for the reporting period is at least
51	51	$100 million.
52	52	Sec. 184.0052. TAX RATES. The rate of the tax imposed under
53	53	this chapter is:
54	54	(1) 2.5 percent of a person's assessable base for the
55	55	reporting period if the person's gross revenue for the reporting
56	56	period is at least $100 million but not more than $1 billion;
57	57	(2) five percent of a person's assessable base for the
58	58	reporting period if the person's gross revenue for the reporting
59	59	period is more than $1 billion but not more than $5 billion;
60	60	(3) 7.5 percent of a person's assessable base for the
61	61	reporting period if the person's gross revenue for the reporting
62	62	period is more than $5 billion but not more than $15 billion; and
63	63	(4) 10 percent of a person's assessable base for the
64	64	reporting period if the person's gross revenue for the reporting
65	65	period is more than $15 billion.
66	66	Sec. 184.0053. BUSINESS ON WHICH TAX IS BASED. (a) The tax
67	67	is based on gross revenue from business done during the reporting
68	68	period.
69	69	(b) The comptroller shall adopt rules for determining when
70	70	business is done. To the extent practicable, the comptroller shall
71	71	consider business to be done when revenue derived from that
72	72	business is recognized by a person according to generally accepted
73	73	accounting principles.
74	74	SUBCHAPTER C. RECORDS, REPORTS, AND PAYMENTS
75	75	Sec. 184.0101. RECORDS. (a) A person on whom the tax is or
76	76	may be imposed shall keep records as required by comptroller rule.
77	77	(b) The comptroller may investigate or examine any records
78	78	of a person to determine the person's liability for the tax.
79	79	Sec. 184.0102. REPORT AND PAYMENT. (a) A person on whom the
80	80	tax is imposed shall file a report with the comptroller on or before
81	81	April 15 following the end of a reporting period. The report must be
82	82	on a form and contain the information required by the comptroller.
83	83	(b) Payment of the tax for a reporting period is due when the
84	84	report is due. The person shall pay the tax to the comptroller.
85	85	SUBCHAPTER D. DISPOSITION OF TAX PROCEEDS
86	86	Sec. 184.0151. ALLOCATION AND DEPOSIT OF PROCEEDS. The
87	87	comptroller shall deposit:
88	88	(1) one-fourth of the proceeds from the collection of
89	89	the tax to the credit of the foundation school fund; and
90	90	(2) three-fourths of the proceeds from the collection
91	91	of the tax to the credit of the general revenue fund.
92	92	SECTION 2. (a) Chapter 184, Tax Code, as added by this Act,
93	93	applies only to revenue derived from business done on or after
94	94	January 1, 2022.
95	95	(b) A person is required to file the first report and make
96	96	the first payment under Section 184.0102, Tax Code, as added by this
97	97	Act, on or before April 15, 2023.
98	98	SECTION 3. (a) Except as provided by Subsection (b) of this
99	99	section, this Act takes effect January 1, 2022.
100	100	(b) Section 184.0002, Tax Code, as added by this Act, takes
101	101	effect September 1, 2021.