By Marchant H.B. No. 2528
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sales and use tax exemptions for religious,
1-3 educational, credit unions, and public service organizations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.310(a), Tax Code, is amended to read
1-6 as follows:
1-7 (a) A taxable item sold, leased, or rented to, or stored,
1-8 used, or consumed by, any of the following organizations is
1-9 exempted from the taxes imposed by this chapter:
1-10 (1) an organization created for religious,
1-11 educational, or charitable purposes if no part of the net earnings
1-12 of the organization benefits a private shareholder or individual
1-13 and the items purchased, leased, or rented are related to the
1-14 purpose of the organization, and in the case of a non-profit
1-15 hospital, the hospital does not receive any payment for providing
1-16 health care services to in-patients from any source including but
1-17 not limited to the patient or person legally obligated to support
1-18 the patient, third-party payors, Medicare, Medicaid, or any other
1-19 state or local indigent care program. Payment for providing health
1-20 care services does not include charitable donations, legacies,
1-21 bequests, or grants or payments for research;
1-22 (2) an organization qualifying for an exemption from
1-23 federal income taxes under Section 501(c)(3), (4), (8), (10), or
2-1 (19), Internal Revenue Code, of the item sold, leased, rented,
2-2 stored, used, or consumed relates to the purpose of the exempted
2-3 organization and the item is not used for the personal benefit of a
2-4 private stockholder or individual;
2-5 (3) a non-profit organization engaged exclusively in
2-6 providing athletic competition among persons under 19 years old if
2-7 no financial benefit goes to an individual or shareholder;
2-8 (4) a company, department, or association organized
2-9 for the purpose of answering fire alarms and extinguishing fires or
2-10 for the purpose of answering fire alarms, extinguishing fires, and
2-11 providing emergency medical services, the members of which receive
2-12 no compensation or only nominal compensation for their services
2-13 rendered, if the taxable item is used exclusively by the company,
2-14 department, or association; <or>
2-15 (5) a chamber of commerce or a convention and tourist
2-16 promotional agency representing at least one Texas city or county
2-17 if the chamber of commerce or the agency is not organized from the
2-18 profit and no part of its net earnings inures to a private
2-19 shareholder or other individual<.>; or
2-20 (6) a credit union organized and doing business under
2-21 the Texas Credit Union Act (Article 2461-1.01 et seq.) or the
2-22 Federal Credit Union Act (12 U.S.C.A. Section 1751 et seq.) if the
2-23 item sold, leased, rented, store, used, or consumed relates to the
2-24 purpose of the credit union and the item is not used for the
2-25 personal benefit of a member or individual.
3-1 SECTION 2. The importance of this legislation and the
3-2 crowded condition of the calendars in both houses create an
3-3 emergency and an imperative public necessity that the
3-4 constitutional rule requiring bills to be read on three several
3-5 days in each house be suspended, and this rule is hereby suspended,
3-6 and that this Act take effect and be in force from and after its
3-7 passage, and it is so enacted.