| 1 | 1 | | 89R2667 RDS-D |
|---|
| 2 | 2 | | By: Campbell S.B. No. 2020 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to the exclusion of real property repair and remodeling |
|---|
| 10 | 10 | | services from sales and use taxes. |
|---|
| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 12 | 12 | | SECTION 1. Section 151.0101(a), Tax Code, is amended to |
|---|
| 13 | 13 | | read as follows: |
|---|
| 14 | 14 | | (a) "Taxable services" means: |
|---|
| 15 | 15 | | (1) amusement services; |
|---|
| 16 | 16 | | (2) cable television services; |
|---|
| 17 | 17 | | (3) personal services; |
|---|
| 18 | 18 | | (4) motor vehicle parking and storage services; |
|---|
| 19 | 19 | | (5) the repair, remodeling, maintenance, and |
|---|
| 20 | 20 | | restoration of tangible personal property, except: |
|---|
| 21 | 21 | | (A) aircraft; |
|---|
| 22 | 22 | | (B) a ship, boat, or other vessel, other than: |
|---|
| 23 | 23 | | (i) a taxable boat or motor as defined by |
|---|
| 24 | 24 | | Section 160.001; |
|---|
| 25 | 25 | | (ii) a sports fishing boat; or |
|---|
| 26 | 26 | | (iii) any other vessel used for pleasure; |
|---|
| 27 | 27 | | (C) the repair, maintenance, and restoration of a |
|---|
| 28 | 28 | | motor vehicle; and |
|---|
| 29 | 29 | | (D) the repair, maintenance, creation, and |
|---|
| 30 | 30 | | restoration of a computer program, including its development and |
|---|
| 31 | 31 | | modification, not sold by the person performing the repair, |
|---|
| 32 | 32 | | maintenance, creation, or restoration service; |
|---|
| 33 | 33 | | (6) telecommunications services; |
|---|
| 34 | 34 | | (7) credit reporting services; |
|---|
| 35 | 35 | | (8) debt collection services; |
|---|
| 36 | 36 | | (9) insurance services; |
|---|
| 37 | 37 | | (10) information services; |
|---|
| 38 | 38 | | (11) real property services; |
|---|
| 39 | 39 | | (12) data processing services; |
|---|
| 40 | 40 | | (13) [real property repair and remodeling; |
|---|
| 41 | 41 | | [(14)] security services; |
|---|
| 42 | 42 | | (14) [(15)] telephone answering services; |
|---|
| 43 | 43 | | (15) [(16)] Internet access service; and |
|---|
| 44 | 44 | | (16) [(17)] a sale by a transmission and distribution |
|---|
| 45 | 45 | | utility, as defined in Section 31.002, Utilities Code, of |
|---|
| 46 | 46 | | transmission or delivery of service directly to an electricity |
|---|
| 47 | 47 | | end-use customer whose consumption of electricity is subject to |
|---|
| 48 | 48 | | taxation under this chapter. |
|---|
| 49 | 49 | | SECTION 2. Sections 151.350(a) and (d), Tax Code, are |
|---|
| 50 | 50 | | amended to read as follows: |
|---|
| 51 | 51 | | (a) Labor to restore [real or] tangible personal property is |
|---|
| 52 | 52 | | exempted from the taxes imposed by this chapter if: |
|---|
| 53 | 53 | | (1) the amount of the charge for labor is separately |
|---|
| 54 | 54 | | itemized; and |
|---|
| 55 | 55 | | (2) the restoration is performed on property damaged |
|---|
| 56 | 56 | | within a disaster area by the condition that caused the area to be |
|---|
| 57 | 57 | | declared a disaster area. |
|---|
| 58 | 58 | | (d) In this section, "restore" means: |
|---|
| 59 | 59 | | (1) launder, clean, repair, treat, or apply protective |
|---|
| 60 | 60 | | chemicals to an item, to the extent the service is a personal |
|---|
| 61 | 61 | | service as defined in Section 151.0045; and |
|---|
| 62 | 62 | | (2) repair, restore, or remodel, to the extent the |
|---|
| 63 | 63 | | service is[: |
|---|
| 64 | 64 | | [(A) a real property repair or remodeling service |
|---|
| 65 | 65 | | as defined in Section 151.0047; or |
|---|
| 66 | 66 | | [(B)] defined as a taxable service in Section |
|---|
| 67 | 67 | | 151.0101(a)(5). |
|---|
| 68 | 68 | | SECTION 3. Section 321.203(e-1), Tax Code, is amended to |
|---|
| 69 | 69 | | read as follows: |
|---|
| 70 | 70 | | (e-1) Except as otherwise provided by Subsection (f), (g), |
|---|
| 71 | 71 | | (g-1), (g-2), (g-3), (h), (i), (j), (k), or (m), [or (n),] a sale of |
|---|
| 72 | 72 | | a taxable item made by a marketplace seller through a marketplace as |
|---|
| 73 | 73 | | provided by Section 151.0242 is consummated at the location in this |
|---|
| 74 | 74 | | state to which the item is shipped or delivered or at which |
|---|
| 75 | 75 | | possession is taken by the purchaser. |
|---|
| 76 | 76 | | SECTION 4. Section 323.203(e-1), Tax Code, is amended to |
|---|
| 77 | 77 | | read as follows: |
|---|
| 78 | 78 | | (e-1) Except as otherwise provided by Subsection (f), (g), |
|---|
| 79 | 79 | | (g-1), (g-2), (g-3), (h), (i), (j), or (k), [or (m),] a sale of a |
|---|
| 80 | 80 | | taxable item made by a marketplace seller through a marketplace as |
|---|
| 81 | 81 | | provided by Section 151.0242 is consummated at the location in this |
|---|
| 82 | 82 | | state to which the item is shipped or delivered or at which |
|---|
| 83 | 83 | | possession is taken by the purchaser. |
|---|
| 84 | 84 | | SECTION 5. Sections 151.0047, 151.3501, 321.203(n), and |
|---|
| 85 | 85 | | 323.203(m), Tax Code, are repealed. |
|---|
| 86 | 86 | | SECTION 6. The changes in law made by this Act do not affect |
|---|
| 87 | 87 | | tax liability accruing before the effective date of this Act. That |
|---|
| 88 | 88 | | liability continues in effect as if this Act had not been enacted, |
|---|
| 89 | 89 | | and the former law is continued in effect for the collection of |
|---|
| 90 | 90 | | taxes due and for civil and criminal enforcement of the liability |
|---|
| 91 | 91 | | for those taxes. |
|---|
| 92 | 92 | | SECTION 7. This Act takes effect September 1, 2025. |
|---|