S.B. No. 906
                                        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.