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A BILL TO BE ENTITLED
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AN ACT
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relating to a sales and use tax exemption for telecommunications |
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services used for the navigation of certain farm and ranch |
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machinery and equipment. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.1551(a), Tax Code, is amended to |
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read as follows: |
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(a) This section applies to an exemption provided by: |
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(1) Section [Sections] 151.316(a)(6), (7), (8), (10), |
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(11), [and] (12), or (14); |
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(2) Section 151.316(b) for tangible personal property |
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used in the production of agricultural products for sale; |
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(3) Section 151.3162(b) for tangible personal |
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property used in the production of timber for sale; |
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(4) Sections 151.317(a)(5) and (11) for electricity |
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used in agriculture or timber operations; and |
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(5) Section 151.3111 for services performed on |
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tangible personal property exempted under Section 151.316(a)(6), |
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(7), (8), (10), (11), or (12), 151.316(b), or 151.3162(b). |
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SECTION 2. Section 151.316(a), Tax Code, is amended to read |
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as follows: |
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(a) Subject to Section 151.1551, the following items are |
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exempted from the taxes imposed by this chapter: |
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(1) horses, mules, and work animals; |
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(2) animal life the products of which ordinarily |
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constitute food for human consumption; |
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(3) feed for farm and ranch animals; |
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(4) feed for animals that are held for sale in the |
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regular course of business; |
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(5) seeds and annual plants the products of which: |
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(A) ordinarily constitute food for human |
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consumption; |
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(B) are to be sold in the regular course of |
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business; or |
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(C) are used to produce feed for animals exempted |
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by this section; |
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(6) fertilizers, fungicides, insecticides, |
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herbicides, defoliants, and desiccants exclusively used or |
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employed on a farm or ranch in the production of: |
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(A) food for human consumption; |
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(B) feed for animal life; or |
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(C) other agricultural products to be sold in the |
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regular course of business; |
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(7) machinery and equipment exclusively used or |
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employed on a farm or ranch in the building or maintaining of roads |
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or water facilities or in the production of: |
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(A) food for human consumption; |
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(B) grass; |
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(C) feed for animal life; or |
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(D) other agricultural products to be sold in the |
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regular course of business; |
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(8) machinery and equipment exclusively used in, and |
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pollution control equipment required as a result of, the |
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processing, packing, or marketing of agricultural products by an |
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original producer at a location operated by the original producer |
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for processing, packing, or marketing the producer's own products |
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if: |
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(A) 50 percent or more of the products processed, |
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packed, or marketed at or from the location are produced by the |
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original producer and not purchased or acquired from others; and |
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(B) the producer does not process, pack, or |
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market for consideration any agricultural products that belong to |
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other persons in an amount greater than five percent of the total |
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agricultural products processed, packed, or marketed by the |
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producer; |
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(9) ice exclusively used by commercial fishing boats |
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in the storing of aquatic species including but not limited to |
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shrimp, other crustaceans, finfish, mollusks, and other similar |
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creatures; |
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(10) tangible personal property, including a tire, |
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sold or used to be installed as a component part of a motor vehicle, |
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machinery, or other equipment exclusively used or employed on a |
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farm or ranch in the building or maintaining of roads or water |
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facilities or in the production of: |
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(A) food for human consumption; |
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(B) grass; |
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(C) feed for animal life; or |
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(D) other agricultural products to be sold in the |
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regular course of business; |
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(11) machinery and equipment exclusively used in an |
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agricultural aircraft operation, as defined by 14 C.F.R. Section |
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137.3; |
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(12) tangible personal property incorporated into a |
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structure that is used for the disposal of poultry carcasses in |
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accordance with Section 26.303, Water Code; [and] |
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(13) tangible personal property incorporated into or |
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attached to a structure that is located on a commercial dairy farm, |
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is used or employed exclusively for the production of milk, and is: |
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(A) a free-stall dairy barn; or |
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(B) a dairy structure used solely for maternity |
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purposes; and |
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(14) telecommunications services exclusively provided |
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or used for the navigation of machinery and equipment exclusively |
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used or employed on a farm or ranch in the building or maintaining |
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of roads or water facilities or in the production of: |
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(A) food for human consumption; |
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(B) grass; |
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(C) feed for animal life; or |
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(D) other agricultural products to be sold in the |
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regular course of business. |
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SECTION 3. The changes in law made by this Act do not affect |
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tax liability accruing before the effective date of this Act. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection and |
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enforcement of those taxes. |
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SECTION 4. This Act takes effect September 1, 2015. |