| 1 | 1 | | 89R13559 CJD-D |
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| 2 | 2 | | By: Craddick H.B. No. 2825 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to sales and use tax exemptions and refunds for certain |
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| 10 | 10 | | tangible personal property used to provide cable television |
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| 11 | 11 | | services, Internet access services, or telecommunications |
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| 12 | 12 | | services. |
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| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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| 15 | 15 | | by adding Section 151.3187 to read as follows: |
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| 16 | 16 | | Sec. 151.3187. PROPERTY USED IN CABLE TELEVISION, INTERNET |
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| 17 | 17 | | ACCESS, OR TELECOMMUNICATIONS SERVICES. (a) In this section, |
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| 18 | 18 | | "provider" means a provider of cable television service, Internet |
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| 19 | 19 | | access service, or telecommunications services. |
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| 20 | 20 | | (b) Except as provided by Subsection (c), the sale, lease, |
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| 21 | 21 | | or rental or storage, use, or other consumption of tangible |
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| 22 | 22 | | personal property is exempted from the taxes imposed by this |
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| 23 | 23 | | chapter if: |
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| 24 | 24 | | (1) the property is sold, leased, or rented to or |
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| 25 | 25 | | stored, used, or consumed by a provider or a subsidiary of a |
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| 26 | 26 | | provider; and |
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| 27 | 27 | | (2) the property is directly used or consumed by the |
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| 28 | 28 | | provider or subsidiary described by Subdivision (1) in or during: |
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| 29 | 29 | | (A) the distribution of cable television |
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| 30 | 30 | | service; |
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| 31 | 31 | | (B) the provision of Internet access service; or |
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| 32 | 32 | | (C) the transmission, conveyance, routing, or |
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| 33 | 33 | | reception of telecommunications services. |
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| 34 | 34 | | (c) The exemption provided by this section does not apply |
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| 35 | 35 | | to: |
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| 36 | 36 | | (1) the sale, lease, or rental or storage, use, or |
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| 37 | 37 | | other consumption of tangible personal property directly used or |
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| 38 | 38 | | consumed in or during the provision, creation, or production of a |
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| 39 | 39 | | data processing service or information service; or |
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| 40 | 40 | | (2) a tax authorized or imposed under Subtitle C, |
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| 41 | 41 | | Title 3. |
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| 42 | 42 | | SECTION 2. Section 151.3186, Tax Code, is repealed. |
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| 43 | 43 | | SECTION 3. (a) The repeal of Section 151.3186, Tax Code, by |
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| 44 | 44 | | this Act does not affect a refund for which a taxpayer: |
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| 45 | 45 | | (1) became entitled to the refund before the effective |
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| 46 | 46 | | date of this Act; and |
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| 47 | 47 | | (2) timely filed a claim for the refund with the |
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| 48 | 48 | | comptroller of public accounts on or before March 31, 2026. |
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| 49 | 49 | | (b) Except as provided by Subsection (a) of this section, |
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| 50 | 50 | | the change in law made by this Act does not affect tax liability |
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| 51 | 51 | | accruing before the effective date of this Act. That liability |
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| 52 | 52 | | continues in effect as if this Act had not been enacted, and the |
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| 53 | 53 | | former law is continued in effect for the collection of taxes due |
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| 54 | 54 | | and for civil and criminal enforcement of the liability for those |
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| 55 | 55 | | taxes. |
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| 56 | 56 | | SECTION 4. This Act takes effect January 1, 2026. |
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