1-1 By: Stiles (Senate Sponsor - Whitmire) H.B. No. 1611
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; May 4, 1995, reported favorably by the following vote:
1-5 Yeas 11, Nays 0; May 4, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to an exemption from the state sales tax for certain ship
1-9 equipment.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 151.329, Tax Code, is amended to read as
1-12 follows:
1-13 Sec. 151.329. Certain Ships and Ship Equipment. The
1-14 following items are exempted from the taxes imposed by this
1-15 chapter:
1-16 (1) materials, equipment, and machinery that enter
1-17 into and become component parts of a ship or vessel that is of
1-18 eight or more tons displacement and is:
1-19 (A) used exclusively and directly in a
1-20 commercial enterprise, including commercial fishing; or
1-21 (B) used commercially as a vessel for pleasure
1-22 fishing by individuals as paying passengers on the vessel;
1-23 (2) a ship or vessel of eight or more tons
1-24 displacement, that is used exclusively and directly in a commercial
1-25 enterprise and is sold by the vessel's builder;
1-26 (3) materials and labor used in repairing, renovating,
1-27 or converting a ship or vessel that is of eight or more tons
1-28 displacement and that is used exclusively and directly in a
1-29 commercial enterprise; <and>
1-30 (4) materials and supplies purchased by the owner or
1-31 operator of a ship or vessel operating exclusively in foreign or
1-32 interstate coastal commerce if the materials and supplies:
1-33 (A) are loaded on the ship or vessel and used in
1-34 the maintenance and operation of the ship or vessel; or
1-35 (B) enter into and become component parts of the
1-36 ship or vessel; and
1-37 (5) materials and supplies purchased by a person
1-38 providing stevedoring services for a ship or vessel operating
1-39 exclusively in foreign or interstate coastal commerce if the
1-40 materials and supplies are loaded aboard the ship or vessel and are
1-41 not removed before the departure of the ship or vessel.
1-42 SECTION 2. (a) This Act takes effect on the first day of
1-43 the first calendar quarter beginning on or after the date that it
1-44 may take effect under Article III, Section 39, of the Texas
1-45 Constitution.
1-46 (b) The change in law made by this Act does not affect taxes
1-47 imposed before the effective date of this Act, and the law in
1-48 effect before the effective date of this Act is continued in effect
1-49 for purposes of the liability for and collection of those taxes.
1-50 SECTION 3. The importance of this legislation and the
1-51 crowded condition of the calendars in both houses create an
1-52 emergency and an imperative public necessity that the
1-53 constitutional rule requiring bills to be read on three several
1-54 days in each house be suspended, and this rule is hereby suspended,
1-55 and that this Act take effect and be in force according to its
1-56 terms, and it is so enacted.
1-57 * * * * *