1-1 By: Naishtat, Duncan (Senate Sponsor - Montford) H.B. No. 2263
1-2 (In the Senate - Received from the House May 17, 1993;
1-3 May 18, 1993, read first time and referred to Committee on Finance;
1-4 May 23, 1993, reported favorably by the following vote: Yeas 9,
1-5 Nays 0; May 23, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to exempting sales by university and college student
1-24 organizations from the state sales tax.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
1-27 by adding Section 151.321 to read as follows:
1-28 Sec. 151.321. UNIVERSITY AND COLLEGE STUDENT ORGANIZATIONS.
1-29 (a) A taxable item sold by a qualified student organization is
1-30 exempted from the taxes imposed by Subchapter C if the student
1-31 organization:
1-32 (1) sells the items at a sale that may last for one
1-33 day only the primary purpose of which is to raise funds for the
1-34 organization; and
1-35 (2) holds not more than one sale described by
1-36 Subdivision (1) each month for which the exemption is claimed for
1-37 an item sold.
1-38 (b) A student organization qualifies for the exemption under
1-39 Subsection (a) if the student organization:
1-40 (1) is affiliated with an institution of higher
1-41 education as defined by Section 61.003, Education Code, or a
1-42 private or independent college or university that is located in
1-43 this state and that is accredited by a recognized accrediting
1-44 agency under Section 61.003, Education Code;
1-45 (2) has as its primary purpose a purpose other than
1-46 engaging in business or performing an activity designed to make a
1-47 profit; and
1-48 (3) files a certification with the comptroller as
1-49 required by Subsection (c).
1-50 (c) A student organization must file with the comptroller a
1-51 certification issued by the institution, college, or university
1-52 described in Subsection (b)(1) showing that the organization is
1-53 affiliated with the institution, college, or university. The
1-54 certification is valid for two years after the date that the
1-55 comptroller receives it.
1-56 (d) The storage, use, or consumption of a taxable item
1-57 acquired tax-free under this section is exempted from the use tax
1-58 imposed by Subchapter D until the item is resold or subsequently
1-59 transferred.
1-60 SECTION 2. (a) This Act takes effect on the first day of
1-61 the first calendar quarter beginning on or after the date that it
1-62 may take effect under Article III, Section 39, of the Texas
1-63 Constitution.
1-64 (b) The change in law made by this Act does not affect taxes
1-65 imposed before the effective date of this Act, and the law in
1-66 effect before the effective date of this Act is continued in effect
1-67 for purposes of liability for and collection of those taxes.
1-68 SECTION 3. The importance of this legislation and the
2-1 crowded condition of the calendars in both houses create an
2-2 emergency and an imperative public necessity that the
2-3 constitutional rule requiring bills to be read on three several
2-4 days in each house be suspended, and this rule is hereby suspended,
2-5 and that this Act take effect and be in force according to its
2-6 terms, and it is so enacted.
2-7 * * * * *
2-8 Austin,
2-9 Texas
2-10 May 23, 1993
2-11 Hon. Bob Bullock
2-12 President of the Senate
2-13 Sir:
2-14 We, your Committee on Finance to which was referred H.B. No. 2263,
2-15 have had the same under consideration, and I am instructed to
2-16 report it back to the Senate with the recommendation that it do
2-17 pass and be printed.
2-18 Montford,
2-19 Chairman
2-20 * * * * *
2-21 WITNESSES
2-22 No witnesses appeared on H.B. No. 2263.