Source: http://www.sos.state.tx.us/texreg/archive/March102017/Adopted%20Rules/34.PUBLIC%20FINANCE.html
Timestamp: 2018-01-17 03:18:26
Document Index: 553022065

Matched Legal Cases: ['§3', '§151', '§151', '§151', '§91', '§151', '§151', '§151', '§151', '§91', '§111', '§111', '§151', '§151', '§3', '§154', '§161', '§161', '§161', '§161', '§161', '§161', '§161', '§161', '§161', '§161', '§161', '§111', '§111']

The Comptroller of Public Accounts adopts amendments to §3.335, concerning property used in a qualifying data center; temporary state sales tax exemption, with changes to the proposed text as published in the September 23, 2016, issue of the Texas Register (41 TexReg 7438). This section is amended to implement House Bill 2712, 84th Legislature, 2015. Effective June 1, 2015, Tax Code, §151.3595 was enacted to provide a temporary exemption from the sales and use tax for certain tangible personal property related to large data center projects. New language is found in the title of the rule and throughout subsections (a) - (l) to address the exemption applicable to qualifying large data center projects. This section is also amended to add language consistent with Tax Code, §151.359 and to define previously undefined terms.
Subsection (a) is amended throughout to be applicable to both qualifying data centers and qualifying large data center projects.
Subsection (a)(1)(A) is amended to specify the existing date is applicable only to qualifying data centers and new subparagraph (B) is added to identify the date prior to which purchases will not be considered toward the total capital investment required by qualifying large data center projects. Subsequent subparagraphs are relettered accordingly.
Paragraph (3) is amended to delete the size requirement from the definition of data center so the remaining definition applies to both qualifying data centers and qualifying large data center projects. The deleted language from paragraph (3) is added to subsection (d).
Paragraph (6) is amended to use the defined term "data center."
Paragraph (7)(B) is amended to apply only to qualifying data centers.
Paragraph (7)(C) is added to explain how the term "qualifying job" applies to qualifying large data center projects. This subparagraph implements Tax Code, §151.3595(a)(4).
Paragraph (8) is added to define the term "qualifying large data center project." Subsequent paragraphs are renumbered accordingly.
Paragraph (12) is added to define the term "shared employment responsibilities." The definition is based on Labor Code, §91.032.
Subsection (b) is amended throughout to apply to both qualifying data centers and qualifying large data center projects.
Paragraph (1) is added to explain that the exemption available for qualifying data centers is only for state sales tax while qualifying large data center projects are exempt from both state and local sales tax. The remaining paragraphs are renumbered accordingly. Renumbered paragraph (2) is amended for consistency with paragraph (1). Subparagraph (A) is amended to address the change in the title of Form 01-929. Subparagraphs (K) and (L) are amended to add the term "described in this section" for consistency with Tax Code, §151.359 and Tax Code, §151.3595.
Subsection (c)(6) is added to be consistent with Tax Code, §151.359 and Tax Code, §151.3595 and subsequent paragraphs are renumbered accordingly. This subsection provides tangible personal property incorporated into real property or an improvement to real estate is not subject to the exemption unless otherwise exempt pursuant to subsection (b).
Subsection (d) is amended to apply only to qualifying data centers. Paragraph (2) is added to include the square footage requirements previously set out in subsection (a)(3). Subsequent paragraphs are renumbered accordingly. Subsection (d) is further amended to correct a grammatical error.
Subsection (e) is added to identify the requirements for qualifying large data center projects. The remaining subsections are relettered accordingly.
Relettered subsection (f) is amended to include qualifying large data center projects and to identify the appropriate application form for certification as a qualifying large data center project.
Relettered subsection (g) is amended throughout to be applicable to both qualifying data centers and qualifying large data center projects. Paragraph (3) is added to identify the exemption period applicable to qualifying large data center projects. The remaining paragraphs are renumbered accordingly. Renumbered paragraph (4) is amended to identify the requirements subject to verification.
Relettered subsection (h) is amended throughout to include qualifying large data center projects. Paragraphs (1) and (3) are amended to address the change in the title of Form 01-929 and to adjust internal references because of renumbering changes. Paragraph (4) is amended to correct a grammatical error. Paragraphs (3) and (4) are also amended to change "retailer" to "sellers" for consistency.
Relettered subsection (i) is amended throughout to be applicable to both qualifying data centers and qualifying large data centers. The specific requirements are deleted and reference to subsection (d) for qualifying data centers and subsection (e) for qualifying large data center projects is added.
Relettered subsection (j) is amended throughout to be applicable to both qualifying data centers and qualifying large data center projects and adds an additional documentation requirement for a qualifying large data center project.
Relettered subsection (k) is amended to be applicable to both qualifying data centers and qualifying large data center projects.
Relettered subsection (l) is amended to apply only to qualifying data centers. Language is added to clarify the subsection does not apply to qualifying large data center projects.
Relettered subsection (m) is amended to be applicable to both qualifying data centers and qualifying large data center projects.
Minor revisions are made to the proposed text as published in the Texas Register in subsections (b)(2) and (c)(6) for consistency and readability.
We received one comment from Mr. Michael Kelley with K&L Gates LLP, submitted on behalf of Microsoft Corporation. The comment recommended amending the definition of "shared employment responsibilities" to include a statement that a qualifying owner, qualifying operator, or qualifying occupant who provides the place of work for third-party employees has shared employment responsibilities.
After carefully considering Mr. Kelley's comments, we determined that the suggested change to the definition of "shared employment responsibilities" is not supported by Labor Code, §91.032.
The amendments are adopted under Tax Code, §111.002 (Comptroller's Rules; Compliance; Forfeiture) and §111.0022 (Application to Other Laws Administered by Comptroller), which provide the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of provisions of Tax Code, Title 2 (State Taxation), and taxes, fees, or other charges or refunds which the comptroller administers under other law.
The amendments implement Tax Code, §151.359 (Property Used in Certain Data Centers; Temporary Exemption) and Tax Code, §151.3595 (Property Used in Certain Large Data Center Projects; Temporary Exemption).
(B) For a qualifying data center, the term includes a new employment position staffed by a third-party employer if the employment position meets the requirements of subparagraph (A) of this paragraph and if there is a written contract between the third-party employer and a qualifying owner, qualifying operator, or qualifying occupant of the associated qualifying data center which:
(i) provides for shared employment responsibilities between the third-party employer and the qualifying owner, qualifying operator, or qualifying occupant; and
(ii) provides that the third-party employment position is permanently assigned to the associated qualifying data center or another location operated by the qualifying owner, qualifying operator, or qualifying occupant within the county where the data center is located for the term of the written contract.
(C) For a qualifying large data center project, the term includes a new employment position staffed by a third party employer if the employment position meets the requirements of subparagraph (A) of this paragraph and if there is a written contract between the third-party employer and a qualifying owner, qualifying operator, or qualifying occupant of the associated large data center project that provides that the employment position is permanently assigned to an associated qualifying large data center project.
(12) Shared employment responsibilities--
(A) The qualifying owner, qualifying operator, or qualifying occupant of a qualifying data center, individually or jointly as set out in the applicable third-party employment contract, and the third-party employer share:
(i) the right of direction and control of third-party employees assigned to the qualifying data center or other location operated by the qualifying owner, qualifying operator, or qualifying occupant within the county where the data center is located;
(ii) the right to hire, fire, discipline, and reassign third-party employees assigned to the qualifying data center or other location operated by the qualifying owner, qualifying operator, or qualifying occupant within the county where the data center is located; and
(iii) the right of direction and control over the adoption of employment and safety policies and the management of workers' compensation claims, claim filings, and related procedures for third-party employees assigned to the qualifying data center or other location operated by the qualifying owner, qualifying operator, or qualifying occupant within the county where the data center is located.
(B) The term does not preclude the qualifying data center from exercising the right of direction and control of all employees, including third-party employees, as necessary to conduct business, discharge any applicable fiduciary duty, or comply with any licensure, regulatory, or statutory requirement.
TRD-201700757
The Comptroller of Public Accounts adopts amendments to §3.1205, concerning delivery sales of cigarettes (Health and Safety Code, Chapter 161, Subchapter R), without changes to the proposed text as published in the January 20, 2017, issue of the Texas Register (42 TexReg 202). This section is amended to implement Senate Bill 97, 84th Legislative Session, 2015 and related statutory provisions. The section is located in Title 34, Chapter 3, Subchapter JJ.
Throughout the section, titles are added to statutory citations as appropriate. In addition, the section is revised to use the term United States Postal Service for consistency throughout the section and to follow the terminology used in the Health and Safety Code.
Subsection (a)(1) is amended to add a definition of the term "cigarette" as described in Tax Code, §154.001. Subsequent paragraphs are re-numbered accordingly. Subsection (a)(6), defining the term "seller," is amended to follow the statutory language more closely. The definition is derived from the following sections of Health and Safety Code, §161.452(b) (Requirements for Delivery Sales), which sets out the compliance responsibilities of a "person taking a delivery sale order;" §161.453(a) (Age Verification Requirements), describing a person who both accepts a delivery sale order and mails or ships cigarettes in connection with a delivery sale order; §161.455(a) (Shipping Requirements), which applies to a person who mails or ships cigarettes in connection with a delivery sale order; and §161.455(b), which applies to a person taking delivery sale orders.
Subsection (b) is amended to address only tax permits and registration. The term "requirements" is deleted. Subsection (b)(1) is amended to delete the term "registration" and to describe the types of tax permits a seller making delivery sales must obtain. To make the amended paragraph easier to read, it is reorganized into subparagraphs. Subparagraph (A) addresses out-of-state sellers. Subparagraph (B) addresses Texas sellers. New paragraph (2) is added to implement the existing statutory requirement in Health and Safety Code, §161.456 (Registration and Reporting Requirements) that sellers making delivery sales must first register with the comptroller. The paragraph identifies the specific information that must be provided to the comptroller.
New subsection (c) is added to address seller's and purchaser's responsibilities. Subsequent paragraphs are re-lettered and re-numbered accordingly. For example, current subsection (b)(2) addressing collection and payment of taxes is amended to be subsection (c)(1).
Subsection (c)(3), currently subsection (b)(4), addressing determining a customer's age, is renamed as "Age verification" to follow the syntax of other paragraphs in the subsection. In addition, the paragraph is amended to add subparagraphs (A) and (B). Subparagraph (A) contains the information that currently appears in subsection (b)(6), and subparagraph (B) contains the information that currently appears in subsection (b)(7). Minor revisions are made to more closely follow the language of Health and Safety Code, §161.453 and to make the subparagraphs easier to read.
Subsection (c)(4), currently subsection (b)(5), is amended to identify a means by which notice may be provided to a prospective purchaser. In addition, minor revisions are made to the subsection to more closely follow the language of Health and Safety Code, §161.454 (Disclosure Requirements).
Subsection (b)(6) and (7) are deleted because the information provided in those paragraphs is now addressed in subsection (c)(3). Subsection (b)(8) is deleted because the information provided in that paragraph is now addressed in subsection (c)(4).
Current subsection (c), addressing purchaser requirements, is renumbered as subsection (b)(5). Corresponding changes are made to current paragraphs (1) - (3).
Subsection (d)(2) is amended to implement the existing statutory requirement that a seller who does not use a delivery service must still comply with the terms set out in the paragraph. See Health and Safety Code, §161.455(b). Paragraph (2)(A) is amended to remove language distinguishing between deliveries at residential and commercial locations and to more closely follow Health and Safety Code, §161.455(a). Subparagraph (A) is divided into subparagraphs (A) and (B). Current subparagraph (B) is deleted as it is unnecessary.
Subsection (e) is amended to delete the word "seller" and to add a statement that the reporting requirements apply to all sellers and persons shipping cigarettes into Texas in connection with a delivery sale. This amendment is intended to more closely follow the language of Health and Safety Code, §161.456(b). New paragraphs (1), (2), and (3) outline the filing requirements, and the exemption from the filing requirements, for sellers making delivery sales. This implements Senate Bill 97, 84th Legislature, 2015. New paragraph (1) describes the information persons engaged in delivery sales are required to file. New subparagraph (A) provides the information that must be submitted. New subparagraph (B) explains that a Texas Cigarette/E-Cigarette Delivery Sales Report will satisfy this filing requirement. New subparagraph (C) identifies due dates.
Information in current subsection (e) concerning the "Jenkins Act" is renumbered as paragraph (2), without change.
New paragraph (3) is added to implement the exemption from the delivery sale filing requirement and includes the comptroller's interpretation of Health and Safety Code, §161.456(d) to mean that sellers who commit certain violations, or are reported as having committed certain violations, lose the exemption and are required to submit delivery sale filings for two years following the violation. New subparagraph (A) provides information on the delivery sale filing requirements for a seller who commits a violation but does not have two years of prior delivery sales history. New subparagraph (B) explains the delivery sale filing requirement for a person who commits a violation.
Subsection (f), addressing violations and penalties, is amended to follow the statutory language more closely.
The amendments are adopted under Tax Code, §111.002 (Comptroller's Rules; Compliance; Forfeiture) and §111.0022 (Application to Other Laws Administered by Comptroller), which provide the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2, and taxes, fees, or other charges that the comptroller administers under other law.
The amendments implement legislative changes to Health and Safety Code, Chapter 161, Subchapter R (Delivery Sales of Cigarettes and E-Cigarettes).
TRD-201700712