Highlights 77th Texas Legislature - Senate

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TAX
77 th Texas Legislature
Authorizes the governing body of a political subdivision that imposes ad valorem taxes to provide for the
taxation of property not exempt from ad valorem taxation by any other law.
Authorizes the governing body of the political subdivision, before acting to tax the exempt property, to
conduct a public hearing at which members of the public are permitted to speak for or against the taxation
of the property.
Collection of Taxes on Printed Materials Distributed by Mail - H.B. 1098
by Representative Bonnen
Senate Sponsor: Senator Duncan
Current law requires a seller to add the amount of the sales tax to the sales price of tangible personal
property or taxable services but is ambiguous concerning tax liability on printed materials distributed by
mail. The purchaser, rather than the printer, has access to the information necessary to determine where
the printed materials were mailed and is then able to use the information for their tax purposes.
Provides that for the purposes of the printer's tax collection duty, the presumption is that printed materials
that are distributed by the United States Postal Service singly or in sets addressed to individual recipients,
other than the purchaser, are either produced at a printer's facility in this state or purchased in this state are
for use in Texas and that the printer is required to collect the tax.
Provides that in order to overcome this presumption, a purchaser of printed materials is required to issue
an exemption certificate to the printer if the printed materials are for distribution to both in-state and out-ofstate
recipients.
Provides that a printer is relieved of the obligation of collecting the taxes on printed materials, but is
required to file a special use tax report for the comptroller.
Provides for the required issuance of an exemption certificate under specific circumstances, thereby
providing an effective audit mechanism for tax administration.
Red Dyed Tax Exempt Diesel Fuel - H.B. 1241
by Representative Counts
Senate Sponsor: Senator Duncan
Current law prohibits a tax-free purchase or sale of any diesel fuel of more than 3,000 gallons in a single
transaction or in a calendar month, with certain conditions. The regulations associated with these
transactions have become increasingly burdensome to both purchasers and suppliers while doing little to
control the illegal use of diesel fuel by the consumer.
Changes the minimum bonding requirement for the purchase of red dyed tax exempt diesel fuel for certain
agricultural, oil, and gas users.
Senate Research Center 297