By:  Ratliff                                           S.B. No. 906
       73R5461 DAK-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to exempting states that border Texas and the governmental
    1-3  units of those states from the state sales and use tax.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 151.309, Tax Code, is amended to read as
    1-6  follows:
    1-7        Sec. 151.309.  Governmental Entities.  A taxable item sold,
    1-8  leased, or rented to, or stored, used, or consumed by, any of the
    1-9  following governmental entities is exempted from the taxes imposed
   1-10  by this chapter:
   1-11              (1)  the United States;
   1-12              (2)  an unincorporated instrumentality of the United
   1-13  States;
   1-14              (3)  a corporation that is an agency or instrumentality
   1-15  of the United States and is wholly owned by the United States or by
   1-16  another corporation wholly owned by the United States;
   1-17              (4)  this state; <or>
   1-18              (5)  a county, city, special district, or other
   1-19  political subdivision of this state; or
   1-20              (6)  a state, or a governmental unit of a state that
   1-21  borders this state, but only to the extent that the other state or
   1-22  governmental unit exempts or does not impose a tax on similar sales
   1-23  of items to this state or a political subdivision of this state.
   1-24        SECTION 2.  (a)  This Act takes effect on the first day of
    2-1  the first calendar quarter beginning on or after the date that it
    2-2  may take effect under Article III, Section 39, of the Texas
    2-3  Constitution.
    2-4        (b)  The change in law made by this Act does not affect taxes
    2-5  imposed before the effective date of this Act, and the law in
    2-6  effect before the effective date of this Act is continued in effect
    2-7  for purposes of the liability for and collection of those taxes.
    2-8        SECTION 3.  The importance of this legislation and the
    2-9  crowded condition of the calendars in both houses create an
   2-10  emergency and an imperative public necessity that the
   2-11  constitutional rule requiring bills to be read on three several
   2-12  days in each house be suspended, and this rule is hereby suspended,
   2-13  and that this Act take effect and be in force according to its
   2-14  terms, and it is so enacted.