By: Ratliff S.B. No. 906
A BILL TO BE ENTITLED
AN ACT
1-1 relating to exempting states that border Texas and the governmental
1-2 units of those states from the state sales and use tax.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 151.309, Tax Code, is amended to read as
1-5 follows:
1-6 Sec. 151.309. Governmental Entities. A taxable item sold,
1-7 leased, or rented to, or stored, used, or consumed by, any of the
1-8 following governmental entities is exempted from the taxes imposed
1-9 by this chapter:
1-10 (1) the United States;
1-11 (2) an unincorporated instrumentality of the United
1-12 States;
1-13 (3) a corporation that is an agency or instrumentality
1-14 of the United States and is wholly owned by the United States or by
1-15 another corporation wholly owned by the United States;
1-16 (4) this state; <or>
1-17 (5) a county, city, special district, or other
1-18 political subdivision of this state; or
1-19 (6) a state, or a governmental unit of a state that
1-20 borders this state, but only to the extent that the other state or
1-21 governmental unit exempts or does not impose a tax on similar sales
1-22 of items to this state or a political subdivision of this state.
1-23 SECTION 2. (a) This Act takes effect on the first day of
1-24 the first calendar quarter beginning on or after the date that it
2-1 may take effect under Article III, Section 39, of the Texas
2-2 Constitution.
2-3 (b) The change in law made by this Act does not affect taxes
2-4 imposed before the effective date of this Act, and the law in
2-5 effect before the effective date of this Act is continued in effect
2-6 for purposes of the liability for and collection of those taxes.
2-7 SECTION 3. The importance of this legislation and the
2-8 crowded condition of the calendars in both houses create an
2-9 emergency and an imperative public necessity that the
2-10 constitutional rule requiring bills to be read on three several
2-11 days in each house be suspended, and this rule is hereby suspended,
2-12 and that this Act take effect and be in force according to its
2-13 terms, and it is so enacted.