HB2825 - Relating to sales and use tax rates and refunds for certain tangible personal property used to provide cable television services, Internet access services, or telecommunications services; reducing the rate of the state sales and use tax applicable to certain taxable items.

  89R29136 CJD-D     By: Craddick, Martinez H.B. No. 2825     Substitute the following for H.B. No. 2825:     By:  Bernal C.S.H.B. No. 2825       A BILL TO BE ENTITLED   AN ACT   relating to sales and use tax rates and refunds for certain tangible   personal property used to provide cable television services,   Internet access services, or telecommunications services; reducing   the rate of the state sales and use tax applicable to certain   taxable items.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Effective January 1, 2028, Subchapter H, Chapter   151, Tax Code, is amended by adding Section 151.3187 to read as   follows:           Sec.   151.3187.     PROPERTY USED IN CABLE TELEVISION, INTERNET   ACCESS, OR TELECOMMUNICATIONS SERVICES.   (a)   In this section,   "provider" means a provider of cable television service, Internet   access service, or telecommunications services.             (b)     Notwithstanding Sections 151.051 and 151.101 and except   as provided by Subsection (c), the rate of the tax imposed under   this chapter on the sale, lease, or rental or storage, use, or other   consumption of tangible personal property is four percent if:                 (1)     the property is sold, leased, or rented to or   stored, used, or consumed by a provider or a subsidiary of a   provider; and                 (2)     the property is directly used or consumed by the   provider or subsidiary described by Subdivision (1) in or during:                       (A)     the distribution of cable television   service;                       (B)  the provision of Internet access service; or                       (C)     the transmission, conveyance, routing, or   reception of telecommunications services.           (c)  This section does not apply to:                 (1)     the sale, lease, or rental or storage, use, or   other consumption of tangible personal property directly used or   consumed in or during the provision, creation, or production of a   data processing service or information service; or                 (2)     a tax authorized or imposed under Subtitle C,   Title 3.           (d)     The comptroller shall adopt rules to implement this   section, including rules providing for a partial refund of any   amount of tax imposed at the rate provided by Subsection (b) but   collected at the rate provided by Section 151.051(b).          SECTION 2.  Section 151.3186, Tax Code, is repealed.          SECTION 3.  (a)  The repeal of Section 151.3186, Tax Code, by   this Act does not affect a refund:                (1)  to which a taxpayer became entitled before the   effective date of this Act; and                (2)  for which a taxpayer timely filed a claim with the   comptroller of public accounts on or before March 31, 2027.          (b)  Except as provided by Subsection (a) of this section,   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 4.  Except as otherwise provided by this Act, this   Act takes effect January 1, 2027.