Cable Television, Internet Access and Telecommunication Services Refunds

Effective September 1, 2013, cable television service, Internet access service or telecommunications services providers will be allowed under House Bill 1133 to claim a refund for state sales and use taxes paid on the purchase, leaser or rental of tangible personal property directly used or consumed in or during the distribution of cable television service, the provision of Internet access service or the transmission, conveyance, routing or reception of telecommunications services.

Property used or consumed in providing data processing or information services does not qualify for a refund.

Total amount available for refund will be capped at $50 million per calendar year.  If total of all qualifying refunds exceeds the cap, each eligible provider will receive a pro rata share.

This refund program is not application to sales and use taxes imposed by local jurisdictions.  If a providers claims the sales and use tax refund, then they will be excluded from claiming special property tax benefits for economic development on that same tangible personal property under Chapter 313 of the Tax Code.

If you have questions regarding this article contact us at www.davisanddavisllc.com.

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