Bill Text: TX HB1841 | 2011-2012 | 82nd Legislature | Comm Sub

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Bill Title: Relating to the taxability of Internet hosting.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2011-06-17 - Effective immediately [HB1841 Detail]

Download: Texas-2011-HB1841-Comm_Sub.html

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By: Hartnett, Hilderbran (Senate Sponsor - Carona) H.B. No. 1841
(In the Senate - Received from the House April 27, 2011;
May 3, 2011, read first time and referred to Committee on Finance;
May 17, 2011, reported favorably by the following vote: Yeas 12,
Nays 0; May 17, 2011, sent to printer.)

A BILL TO BE ENTITLED
AN ACT
relating to the taxability of Internet hosting.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 151, Tax Code, is amended
by adding Section 151.108 to read as follows:
Sec. 151.108. INTERNET HOSTING. (a) In this section,
"Internet hosting" means providing to an unrelated user access over
the Internet to computer services using property that is owned or
leased and managed by the provider and on which the user may store
or process the user's own data or use software that is owned,
licensed, or leased by the user or provider. The term does not
include telecommunications services.
(b) A person whose only activity in this state is conducted
as a user of Internet hosting is not engaged in business in this
state.
(c) A person providing Internet hosting is not required to:
(1) examine a user's data to determine the
applicability of this chapter to a user;
(2) report to the comptroller about a user's
activities; or
(3) advise a user as to the applicability of this
chapter.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.
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