HB3089 - Relating to the exclusion of real property repair and remodeling services from sales and use taxes.

  89R2667 RDS-D     By: Tepper H.B. No. 3089       A BILL TO BE ENTITLED   AN ACT   relating to the exclusion of real property repair and remodeling   services from sales and use taxes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 151.0101(a), Tax Code, is amended to   read as follows:          (a)  "Taxable services" means:                (1)  amusement services;                (2)  cable television services;                (3)  personal services;                (4)  motor vehicle parking and storage services;                (5)  the repair, remodeling, maintenance, and   restoration of tangible personal property, except:                      (A)  aircraft;                      (B)  a ship, boat, or other vessel, other than:                            (i)  a taxable boat or motor as defined by   Section 160.001;                            (ii)  a sports fishing boat; or                            (iii)  any other vessel used for pleasure;                      (C)  the repair, maintenance, and restoration of a   motor vehicle; and                      (D)  the repair, maintenance, creation, and   restoration of a computer program, including its development and   modification, not sold by the person performing the repair,   maintenance, creation, or restoration service;                (6)  telecommunications services;                (7)  credit reporting services;                (8)  debt collection services;                (9)  insurance services;                (10)  information services;                (11)  real property services;                (12)  data processing services;                (13)  [ real property repair and remodeling;                [ (14) ]  security services;                 (14)  [ (15) ]  telephone answering services;                 (15)  [ (16) ]  Internet access service; and                 (16)  [ (17) ]  a sale by a transmission and distribution   utility, as defined in Section 31.002, Utilities Code, of   transmission or delivery of service directly to an electricity   end-use customer whose consumption of electricity is subject to   taxation under this chapter.          SECTION 2.  Sections 151.350(a) and (d), Tax Code, are   amended to read as follows:          (a)  Labor to restore [ real or ] tangible personal property is   exempted from the taxes imposed by this chapter if:                (1)  the amount of the charge for labor is separately   itemized; and                (2)  the restoration is performed on property damaged   within a disaster area by the condition that caused the area to be   declared a disaster area.          (d)  In this section, "restore" means:                (1)  launder, clean, repair, treat, or apply protective   chemicals to an item, to the extent the service is a personal   service as defined in Section 151.0045; and                (2)  repair, restore, or remodel, to the extent the   service is[ :                      [ (A)     a real property repair or remodeling service   as defined in Section 151.0047; or                      [ (B) ]  defined as a taxable service in Section   151.0101(a)(5).          SECTION 3.  Section 321.203(e-1), Tax Code, is amended to   read as follows:          (e-1)  Except as otherwise provided by Subsection (f), (g),   (g-1), (g-2), (g-3), (h), (i), (j), (k), or (m), [ or (n), ] a sale of   a taxable item made by a marketplace seller through a marketplace as   provided by Section 151.0242 is consummated at the location in this   state to which the item is shipped or delivered or at which   possession is taken by the purchaser.          SECTION 4.  Section 323.203(e-1), Tax Code, is amended to   read as follows:          (e-1)  Except as otherwise provided by Subsection (f), (g),   (g-1), (g-2), (g-3), (h), (i), (j), or (k), [ or (m), ] a sale of a   taxable item made by a marketplace seller through a marketplace as   provided by Section 151.0242 is consummated at the location in this   state to which the item is shipped or delivered or at which   possession is taken by the purchaser.          SECTION 5.  Sections 151.0047, 151.3501, 321.203(n), and   323.203(m), Tax Code, are repealed.          SECTION 6.  The changes in law made by this Act do 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 7.  This Act takes effect September 1, 2025.