1-1 By: Duncan, Naishtat (Senate Sponsor - Montford) H.B. No. 596 1-2 (In the Senate - Received from the House April 3, 1995; 1-3 April 4, 1995, read first time and referred to Committee on 1-4 Finance; April 28, 1995, reported favorably by the following vote: 1-5 Yeas 11, Nays 0; April 28, 1995, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to exempting sales by university and college student 1-9 organizations from the state sales tax. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended 1-12 by adding Section 151.321 to read as follows: 1-13 Sec. 151.321. UNIVERSITY AND COLLEGE STUDENT ORGANIZATIONS. 1-14 (a) A taxable item sold by a qualified student organization is 1-15 exempted from the taxes imposed by Subchapter C if the student 1-16 organization: 1-17 (1) sells the items at a sale that may last for one 1-18 day only the primary purpose of which is to raise funds for the 1-19 organization; and 1-20 (2) holds not more than one sale described by 1-21 Subdivision (1) each month for which the exemption is claimed for 1-22 an item sold. 1-23 (b) A student organization qualifies for the exemption under 1-24 Subsection (a) if the student organization: 1-25 (1) is affiliated with an institution of higher 1-26 education as defined by Section 61.003, Education Code, or a 1-27 private or independent college or university that is located in 1-28 this state and that is accredited by a recognized accrediting 1-29 agency under Section 61.003, Education Code; 1-30 (2) has as its primary purpose a purpose other than 1-31 engaging in business or performing an activity designed to make a 1-32 profit; and 1-33 (3) files a certification with the comptroller as 1-34 required by Subsection (c). 1-35 (c) A student organization must file with the comptroller a 1-36 certification issued by the institution, college, or university 1-37 described in Subsection (b)(1) showing that the organization is 1-38 affiliated with the institution, college, or university. The 1-39 certification is valid for two years after the date that the 1-40 comptroller receives it. 1-41 (d) The storage, use, or consumption of a taxable item 1-42 acquired tax-free under this section is exempted from the use tax 1-43 imposed by Subchapter D until the item is resold or subsequently 1-44 transferred. 1-45 SECTION 2. (a) This Act takes effect on the first day of 1-46 the first calendar quarter beginning on or after the date that it 1-47 may take effect under Section 39, Article III, Texas Constitution. 1-48 (b) The change in law made by this Act does not affect taxes 1-49 imposed before the effective date of this Act, and the law in 1-50 effect before the effective date of this Act is continued in effect 1-51 for purposes of liability for and collection of those taxes. 1-52 SECTION 3. The importance of this legislation and the 1-53 crowded condition of the calendars in both houses create an 1-54 emergency and an imperative public necessity that the 1-55 constitutional rule requiring bills to be read on three several 1-56 days in each house be suspended, and this rule is hereby suspended, 1-57 and that this Act take effect and be in force according to its 1-58 terms, and it is so enacted. 1-59 * * * * *