By: Naishtat H.B. No. 2263 73R5701 DAK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to exempting sales by university and college student 1-3 organizations from the state sales 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 151.321 to read as follows: 1-7 Sec. 151.321. UNIVERSITY AND COLLEGE STUDENT ORGANIZATIONS. 1-8 (a) A taxable item sold by a student organization is exempted from 1-9 the taxes imposed by Subchapter C if the student organization: 1-10 (1) is affiliated with an institution of higher 1-11 education as defined by Section 61.003, Education Code, or a 1-12 private or independent college or university that is located in 1-13 this state and that is accredited by a recognized accrediting 1-14 agency under Section 61.003, Education Code; 1-15 (2) has as its primary purpose a purpose other than 1-16 engaging in business or performing an activity designed to make a 1-17 profit; and 1-18 (3) files a certification with the comptroller as 1-19 required by Subsection (b). 1-20 (b) To qualify for an exemption under Subsection (a), a 1-21 student organization must file with the comptroller a certification 1-22 issued by the institution, college, or university described in 1-23 Subsection (a)(1) showing that the organization is affiliated with 1-24 the institution, college, or university. The certification is 2-1 valid for two years after the date that the comptroller receives 2-2 it. 2-3 (c) The storage, use, or consumption of a taxable item 2-4 acquired tax-free under this section is exempted from the use tax 2-5 imposed by Subchapter D until the item is resold or subsequently 2-6 transferred. 2-7 SECTION 2. (a) This Act takes effect on the first day of 2-8 the first calendar quarter beginning on or after the date that it 2-9 may take effect under Article III, Section 39, of the Texas 2-10 Constitution. 2-11 (b) The change in law made by this Act does not affect taxes 2-12 imposed before the effective date of this Act, and the law in 2-13 effect before the effective date of this Act is continued in effect 2-14 for purposes of the liability for and collection of those taxes. 2-15 SECTION 3. The importance of this legislation and the 2-16 crowded condition of the calendars in both houses create an 2-17 emergency and an imperative public necessity that the 2-18 constitutional rule requiring bills to be read on three several 2-19 days in each house be suspended, and this rule is hereby suspended, 2-20 and that this Act take effect and be in force according to its 2-21 terms, and it is so enacted.