DALLAS, May 31, 2013 /PRNewswire/ -- The Texas Legislature has passed legislation to create a new state sales tax rebate aimed at encouraging increased investments in telecommunications, Internet access, or cable equipment. House Bill 1133, by Representative John Otto (R-Dayton) and Senator Craig Estes (R-Wichita Falls), is on the desk of Governor Rick Perry and, if signed, would take effect on September 1, 2013.
The bill, which passed the Texas Senate on May 21, 2013 and the House of Representatives on May 7, 2013 amends the Tax Code to create a rebate of state sales and use tax paid on the sale, lease, rental or storage, use, or other consumption of property directly used in connection with the distribution of cable television service, the provision of Internet access service, or the transmission, conveyance, routing, or reception of telecommunications services. The rebate provision does not apply to local sales tax. It also does not apply to state sales tax paid on property used or consumed in or during the provision, creation, or production of data processing service or information service. A taxpayer that receives a tax rebate under this provision is not eligible for a property tax abatement for the property under Chapter 313, Tax Code.
Due to the anticipated fiscal impact of the bill, the sponsors agreed to a $50 million per year cap on total tax rebates under this program. In the event that the total amount of tax rebates sought by all providers in a calendar year exceeds the cap, all refunds will be reduced on a pro-rata basis.
Ryan is an award-winning global tax services firm, with the largest indirect tax practice in North America and the seventh largest corporate tax practice in the United States. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 1,600 professionals and associates serves over 9,000 clients in 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at www.ryan.com.
TECHNICAL INFORMATION CONTACT:
Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
SOURCE Ryan, LLC