73R5351 CBH-F By Kamel H.B. No. 85 Substitute the following for H.B. No. 85: By Oliveira C.S.H.B. No. 85 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the taxation of property used for the improvement of 1-3 realty for a county. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 151.311, Tax Code, is amended to read as 1-6 follows: 1-7 Sec. 151.311. PROPERTY USED FOR IMPROVEMENT OF REALTY OF A 1-8 COUNTY, SCHOOL DISTRICT, OR NONPROFIT HOSPITAL. (a) Tangible 1-9 personal property purchased by a contractor for use in the 1-10 performance of a contract for the improvement of realty for a 1-11 school district or nonprofit hospital is exempted from the taxes 1-12 imposed by this chapter to the extent of the value of the tangible 1-13 personal property used or consumed or both in the performance of 1-14 the contract. 1-15 (b) Tangible personal property is exempted from the taxes 1-16 imposed by this chapter if the property is: 1-17 (1) purchased by a contractor for use in the 1-18 performance of a contract for the improvement of realty for a 1-19 county; and 1-20 (2) incorporated into that improvement. 1-21 (c) In this section "nonprofit hospital" means a hospital 1-22 licensed under Chapter 241 or 577, Health and Safety Code, that is 1-23 operated as a charitable or nonprofit establishment. 1-24 SECTION 2. (a) This Act takes effect October 1, 1993, and, 2-1 except as provided by Section 3 of this Act, applies to tangible 2-2 personal property purchased on or after that date. 2-3 (b) The change in law made by this Act does not affect tax 2-4 liability accruing before the effective date of this Act. That 2-5 liability continues in effect as if this Act had not been enacted, 2-6 and the former law is continued in effect for the collection of 2-7 taxes due and for civil and criminal enforcement of the liability 2-8 for those taxes. 2-9 SECTION 3. The exemption provided by Section 151.311, Tax 2-10 Code, as amended by this Act, for a contractor who purchases 2-11 property for the improvement of realty for a county does not apply 2-12 to the purchase of tangible personal property under a contract 2-13 executed before the effective date of this Act and under which the 2-14 county is not entitled to a refund of an amount of the contract 2-15 price equal to the amount of the tax savings that would accrue to 2-16 the contractor from the exemption provided by this Act if the 2-17 exemption were effective for purchases made after the effective 2-18 date of this Act. This section does not prevent the application of 2-19 the exemption provided by Section 151.311, Tax Code, as amended by 2-20 this Act, to a contractor who refunds all or a part of the tax 2-21 savings under a contract amendment executed by the county and the 2-22 contractor after the effective date of this Act. 2-23 SECTION 4. The importance of this legislation and the 2-24 crowded condition of the calendars in both houses create an 2-25 emergency and an imperative public necessity that the 2-26 constitutional rule requiring bills to be read on three several 2-27 days in each house be suspended, and this rule is hereby suspended.