By Stiles H.B. No. 1611
74R5137 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an exemption from the state sales tax for certain ship
1-3 equipment.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.329, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 151.329. Certain Ships and Ship Equipment. The
1-8 following items are exempted from the taxes imposed by this
1-9 chapter:
1-10 (1) materials, equipment, and machinery that enter
1-11 into and become component parts of a ship or vessel that is of
1-12 eight or more tons displacement and is:
1-13 (A) used exclusively and directly in a
1-14 commercial enterprise, including commercial fishing; or
1-15 (B) used commercially as a vessel for pleasure
1-16 fishing by individuals as paying passengers on the vessel;
1-17 (2) a ship or vessel of eight or more tons
1-18 displacement, that is used exclusively and directly in a commercial
1-19 enterprise and is sold by the vessel's builder;
1-20 (3) materials and labor used in repairing, renovating,
1-21 or converting a ship or vessel that is of eight or more tons
1-22 displacement and that is used exclusively and directly in a
1-23 commercial enterprise; <and>
1-24 (4) materials and supplies purchased by the owner or
2-1 operator of a ship or vessel operating exclusively in foreign or
2-2 interstate coastal commerce if the materials and supplies:
2-3 (A) are loaded on the ship or vessel and used in
2-4 the maintenance and operation of the ship or vessel; or
2-5 (B) enter into and become component parts of the
2-6 ship or vessel; and
2-7 (5) materials and supplies purchased by a person
2-8 providing stevedoring services for a ship or vessel operating
2-9 exclusively in foreign or interstate coastal commerce if the
2-10 materials and supplies are loaded aboard the ship or vessel and are
2-11 not removed before the departure of the ship or vessel.
2-12 SECTION 2. (a) This Act takes effect on the first day of
2-13 the first calendar quarter beginning on or after the date that it
2-14 may take effect under Article III, Section 39, of the Texas
2-15 Constitution.
2-16 (b) The change in law made by this Act does not affect taxes
2-17 imposed before the effective date of this Act, and the law in
2-18 effect before the effective date of this Act is continued in effect
2-19 for purposes of the liability for and collection of those taxes.
2-20 SECTION 3. The importance of this legislation and the
2-21 crowded condition of the calendars in both houses create an
2-22 emergency and an imperative public necessity that the
2-23 constitutional rule requiring bills to be read on three several
2-24 days in each house be suspended, and this rule is hereby suspended,
2-25 and that this Act take effect and be in force according to its
2-26 terms, and it is so enacted.