Bill Text: TX HB3689 | 2015-2016 | 84th Legislature | Introduced


Bill Title: Relating to the temporary exemption of certain tangible personal property related to a data center from the state sales and use tax.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-04-07 - Left pending in committee [HB3689 Detail]

Download: Texas-2015-HB3689-Introduced.html
  84R13468 CJC-F
 
  By: Gonzales H.B. No. 3689
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the temporary exemption of certain tangible personal
  property related to a data center from the state sales and use tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 151.359(a)(2), Tax Code, is amended to
  read as follows:
               (2)  "Data center" means at least 50,000 [100,000]
  square feet of space in a single building or portion of a single
  building, which space:
                     (A)  is located in this state on or after
  September 1, 2013;
                     (B)  is specifically constructed or refurbished
  and actually used primarily to house servers and related equipment
  and support staff for the processing, storage, and distribution of
  data;
                     (C)  is used by a single qualifying occupant for
  the processing, storage, and distribution of data;
                     (D)  is not used primarily by a telecommunications
  provider to place tangible personal property that is used to
  deliver telecommunications services; and
                     (E)  has an uninterruptible power source,
  generator backup power, a sophisticated fire suppression and
  prevention system, and enhanced physical security that includes
  restricted access, video surveillance, and electronic systems.
         SECTION 2.  Sections 151.359(d) and (f), Tax Code, are
  amended to read as follows:
         (d)  Subject to Subsection (k), a data center may be
  certified by the comptroller as a qualifying data center for
  purposes of this section if, on or after September 1, 2013:
               (1)  a single qualifying occupant:
                     (A)  contracts with a qualifying owner or
  qualifying operator to lease space in which the qualifying occupant
  will locate a data center; or
                     (B)  occupies a space that was not previously used
  as a data center in which the qualifying occupant will locate a data
  center, in the case of a qualifying occupant who is also the
  qualifying operator and the qualifying owner; and
               (2)  the qualifying owner, qualifying operator, or
  qualifying occupant, jointly or independently:
                     (A)  creates at least 15 [20] qualifying jobs in
  the county in which the data center is located, not including jobs
  moved from one county in this state to another county in this state;
  and
                     (B)  makes or agrees to make a capital investment,
  on or after September 1, 2013, of at least $100 [$200] million in
  that particular data center over a five-year period beginning on
  the date the data center is certified by the comptroller as a
  qualifying data center.
         (f)  The exemption provided by this section begins on the
  date the data center is certified by the comptroller as a qualifying
  data center and expires:
               (1)  on the 10th anniversary of that date, if the
  qualifying occupant, qualifying owner, or qualifying operator
  independently or jointly makes a capital investment of at least
  $100 [$200] million but less than $250 million as provided by
  Subsection (d)(2)(B); or
               (2)  on the 15th anniversary of that date, if the
  qualifying occupant, qualifying owner, or qualifying operator
  independently or jointly makes a capital investment of $250 million
  or more as provided by Subsection (d)(2)(B).
         SECTION 3.  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 immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.
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