Bill Text: TX SB1217 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to sales and use tax exemptions and refunds for certain tangible personal property used to provide cable television services, Internet access services, or telecommunications services.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-11 - Filed [SB1217 Detail]
Download: Texas-2025-SB1217-Introduced.html
| 89R13559 CJD-D | ||
| By: Hughes | S.B. No. 1217 | |
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| relating to sales and use tax exemptions and refunds for certain | ||
| tangible personal property used to provide cable television | ||
| services, Internet access services, or telecommunications | ||
| services. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. 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) Except as provided by Subsection (c), the sale, lease, | ||
| or rental or storage, use, or other consumption of tangible | ||
| personal property is exempted from the taxes imposed by this | ||
| chapter 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) The exemption provided by 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. | ||
| 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 Section 151.3186, Tax Code, is repealed.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 for which a taxpayer: | ||
| (1) became entitled to the refund before the effective | ||
| date of this Act; and | ||
| (2) timely filed a claim for the refund with the | ||
| comptroller of public accounts on or before March 31, 2026. | ||
| (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. This Act takes effect January 1, 2026. | ||
