The bill, S.B. No. 1217, proposes amendments to the Texas Tax Code by adding Section 151.3187, which establishes sales and use tax exemptions for certain tangible personal property utilized by providers of cable television, Internet access, or telecommunications services. The new section defines a "provider" and outlines that the sale, lease, rental, or consumption of such property is exempt from taxes if it is directly used by the provider in the distribution of cable television services, provision of Internet access, or transmission of telecommunications services. However, the exemption does not apply to property used in the provision of data processing or information services, nor to taxes authorized under Subtitle C, Title 3.

Additionally, the bill repeals Section 151.3186 of the Tax Code, but ensures that any refunds for which a taxpayer became entitled before the bill's effective date are still honored if claims are filed by March 31, 2026. The changes made by this bill will take effect on January 1, 2026, and any tax liabilities that accrued before this date will remain enforceable under the previous law.

Statutes affected:
Introduced: Tax Code 151.3186 (Tax Code 151)