By:  Saunders                                         H.B. No. 2046
       73R5440 DAK-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to exempting recycling equipment used in manufacturing
    1-3  from the state sales and use tax.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
    1-6  by adding Section 151.350 to read as follows:
    1-7        Sec. 151.350.  RECYCLING EQUIPMENT USED IN MANUFACTURING.
    1-8  (a)  Machinery or equipment used exclusively for processing
    1-9  recycled material for use or consumption in manufacturing is
   1-10  exempted from the taxes imposed by this chapter.
   1-11        (b)  The exemption includes replacement parts or accessories
   1-12  for the machinery or equipment.
   1-13        (c)  In this section:
   1-14              (1)  "Manufacturing" has the meaning assigned by
   1-15  Section 151.318(d).
   1-16              (2)  "Recycled material" has the meaning assigned by
   1-17  Section 361.421, Health and Safety Code.
   1-18        SECTION 2.  (a)  This Act takes effect on the first day of
   1-19  the first calendar quarter beginning on or after the date that it
   1-20  may take effect under Article III, Section 39, of the Texas
   1-21  Constitution.
   1-22        (b)  The change in law made by this Act does not affect taxes
   1-23  imposed before the effective date of this Act, and the law in
   1-24  effect before the effective date of this Act is continued in effect
    2-1  for purposes of the liability for and collection of those taxes.
    2-2        SECTION 3.  The importance of this legislation and the
    2-3  crowded condition of the calendars in both houses create an
    2-4  emergency and an imperative public necessity that the
    2-5  constitutional rule requiring bills to be read on three several
    2-6  days in each house be suspended, and this rule is hereby suspended,
    2-7  and that this Act take effect and be in force according to its
    2-8  terms, and it is so enacted.