Bill Text: TX HB3169 | 2013-2014 | 83rd Legislature | Engrossed

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Bill Title: Relating to the imposition of the sales and use tax on certain taxable items.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-06-14 - Effective on 9/1/13 [HB3169 Detail]

Download: Texas-2013-HB3169-Engrossed.html

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83R18833 KLA-F
By: Bohac H.B. No. 3169

A BILL TO BE ENTITLED
AN ACT
relating to the imposition of the sales and use tax on taxable items
sold or provided under certain contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 151.0565(a)(1) and (2), Tax Code, are
amended to read as follows:
(1) "Destination management services" means the
following services when provided under a qualified destination
management services contract:
(A) transportation vehicle management;
(B) booking and managing entertainers;
(C) coordination of tours or recreational
activities;
(D) meeting, conference, or event registration;
(E) meeting, conference, transportation, or
event staffing;
(F) event management; [and]
(G) meal coordination;
(H) shuttle system services, including vehicle
staging, radio communications, signage, and routing services; and
(I) airport meet-and-greet services, including
the provision of airport permits, manifest management services,
porterage, and passenger greeting services.
(2) "Qualified destination management company" means
a business entity that:
(A) is incorporated or is a limited liability
company;
(B) receives at least 80 percent of the entity's
annual total revenue from providing or arranging for the provision
of destination management services;
(C) maintains a permanent nonresidential office
from which the destination management services are provided or
arranged;
(D) has at least three full-time employees;
(E) maintains a general liability insurance
policy with a limit of at least $1 million [spends at least one
percent of the entity's annual gross receipts to market the
destinations with respect to which destination management services
are provided];
(F) has at least 80 percent of the entity's
clients [described by Subdivision (3)(A)] located outside this
state;
(G) other than office equipment used in the
conduct of the entity's business, does not own equipment used to
directly provide destination management services, including motor
coaches, limousines, sedans, dance floors, decorative props,
lighting, podiums, sound or video equipment, or equipment for
catered meals;
(H) does not prepare or serve beverages, meals,
or other food products, but may procure catering services on behalf
of the entity's clients [is not doing business as a caterer];
(I) does not provide services for weddings;
(J) does not own or operate a venue at which
events or activities for which destination management services are
provided occur; and
(K) [is not a subsidiary of another entity that,
and] is not a member of an affiliated group, as that term is defined
by Section 171.0001, another member of which:
(i) prepares or serves beverages, meals, or
other food products [is doing business as, or owns or operates
another entity doing business as, a caterer]; or
(ii) owns or operates a venue described by
Paragraph (J).
SECTION 2. 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 3. This Act takes effect September 1, 2013.