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.