SB1217 - 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.

  89R13559 CJD-D     By: Hughes S.B. No. 1217       A BILL TO BE ENTITLED   AN ACT   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  Section 151.3186, Tax Code, is repealed.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.