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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from sales and use taxes for items sold by |
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a nonprofit organization at a county fair. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.3102, Tax Code, is amended to read as |
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follows: |
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Sec. 151.3102. SALE BY NONPROFIT ORGANIZATION AT COUNTY |
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FAIR. (a) The sale of a taxable item is exempt from the taxes |
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imposed by this chapter if: |
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(1) the seller or retailer is a county fair |
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association or another nonprofit organization that is exempt from |
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federal income taxation under Section 501(a), Internal Revenue Code |
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of 1986, by being listed as an exempt organization in Section |
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501(c)(3) of that code; |
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(2) the sale takes place at a county fair operated by a |
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county fair association on property owned by the county; and |
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(3) the purchaser is a person attending or |
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participating in the fair. |
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(b) In this section: |
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(1) "County fair association" means an organization |
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that is exempt from federal income taxation under Section 501(a), |
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Internal Revenue Code of 1986, by being listed as an exempt |
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organization in Section 501(c)(3) of that code and that organizes a |
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county fair that is primarily for the exhibition of local |
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horticultural or agricultural products or livestock. The term does |
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not include: |
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(A) an association that holds a license issued |
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after January 1, 2001, under Subtitle A-1, Title 13, Occupations |
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Code (Texas Racing Act); or |
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(B) an association that organizes events other |
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than a county fair, including an exhibition of arts and crafts or a |
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state fair. |
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(2) "Livestock" includes turkeys, domesticated fowl, |
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cows, sheep, swine, horses, mules, donkeys, and goats. The term |
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does not include domesticated animals such as dogs, cats, guinea |
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pigs, hamsters, or other similar animals. |
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SECTION 2. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 3. This Act takes effect October 1, 2021. |