By:  Kamel                                              H.B. No. 85
       73R939 CBH-D
                                 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  county, school district, or nonprofit hospital is exempted from the
   1-12  taxes imposed by this chapter to the extent of the value of the
   1-13  tangible personal property used or consumed or both in the
   1-14  performance of the contract.
   1-15        (b)  In this section "nonprofit hospital" means a hospital
   1-16  licensed under Chapter 241 or 577, Health and Safety Code, that is
   1-17  operated as a charitable or nonprofit establishment.
   1-18        SECTION 2.  (a)  This Act takes effect October 1, 1993, and,
   1-19  except as provided by Section 3 of this Act, applies to tangible
   1-20  personal property purchased on or after that date.
   1-21        (b)  The change in law made by this Act does not affect tax
   1-22  liability accruing before the effective date of this Act.  That
   1-23  liability continues in effect as if this Act had not been enacted,
   1-24  and the former law is continued in effect for the collection of
    2-1  taxes due and for civil and criminal enforcement of the liability
    2-2  for those taxes.
    2-3        SECTION 3.  The exemption provided by Section 151.311, Tax
    2-4  Code, as amended by this Act, for a contractor who purchases
    2-5  property for the improvement of realty for a county does not apply
    2-6  to the purchase of tangible personal property under a contract
    2-7  executed before the effective date of this Act and under which the
    2-8  county is not entitled to a refund of an amount of the contract
    2-9  price equal to the amount of the tax savings that would accrue to
   2-10  the contractor from the exemption provided by this Act if the
   2-11  exemption were effective for purchases made after the effective
   2-12  date of this Act.  This section does not prevent the application of
   2-13  the exemption provided by Section 151.311, Tax Code, as amended by
   2-14  this Act, to a contractor who refunds all or a part of the tax
   2-15  savings under a contract amendment executed by the county and the
   2-16  contractor after the effective date of this Act.
   2-17        SECTION 4.  The importance of this legislation and the
   2-18  crowded condition of the calendars in both houses create an
   2-19  emergency   and   an   imperative   public   necessity   that   the
   2-20  constitutional rule requiring bills to be read on three several
   2-21  days in each house be suspended, and this rule is hereby suspended.