By Johnson H.B. No. 2874
74R3865 DAK-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting from the sales and use tax machinery and
1-3 equipment used to prepare, plant, cultivate, or harvest timber.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.316(a), Tax Code, is amended to read
1-6 as follows:
1-7 (a) The following items are exempted from the taxes imposed
1-8 by this chapter:
1-9 (1) horses, mules, and work animals;
1-10 (2) animal life the products of which ordinarily
1-11 constitute food for human consumption;
1-12 (3) feed for farm and ranch animals;
1-13 (4) feed for animals that are held for sale in the
1-14 regular course of business;
1-15 (5) seeds and annual plants the products of which:
1-16 (A) ordinarily constitute food for human
1-17 consumption;
1-18 (B) are to be sold in the regular course of
1-19 business; or
1-20 (C) are used to produce feed for animals
1-21 exempted by this section;
1-22 (6) fertilizers, fungicides, insecticides, herbicides,
1-23 defoliants, and desiccants exclusively used or employed on a farm
1-24 or ranch in the production of:
2-1 (A) food for human consumption;
2-2 (B) feed for animal life; or
2-3 (C) other agricultural products to be sold in
2-4 the regular course of business;
2-5 (7) machinery and equipment exclusively used or
2-6 employed on a farm or ranch in the building or maintaining of roads
2-7 or water facilities or in the production of:
2-8 (A) food for human consumption;
2-9 (B) grass;
2-10 (C) feed for animal life; or
2-11 (D) other agricultural products to be sold in
2-12 the regular course of business;
2-13 (8) machinery and equipment exclusively used in the
2-14 processing, packing, or marketing of agricultural products by the
2-15 original producer at a location operated by the original producer
2-16 exclusively for processing, packing, or marketing the producer's
2-17 own products; <and>
2-18 (9) ice exclusively used by commercial fishing boats
2-19 in the storing of aquatic species including but not limited to
2-20 shrimp, other crustaceans, finfish, mollusks, and other similar
2-21 creatures; and
2-22 (10) the first $50,000 of the cost of each unit of
2-23 machinery or equipment exclusively used in site preparation,
2-24 planting, cultivating, or harvesting timber.
2-25 SECTION 2. The change in law made by this Act does not
2-26 affect taxes imposed before the effective date of this Act, and the
2-27 law in effect before the effective date of this Act is continued in
3-1 effect for purposes of the liability for and collection of those
3-2 taxes.
3-3 SECTION 3. This Act takes effect October 1, 1995.
3-4 SECTION 4. The importance of this legislation and the
3-5 crowded condition of the calendars in both houses create an
3-6 emergency and an imperative public necessity that the
3-7 constitutional rule requiring bills to be read on three several
3-8 days in each house be suspended, and this rule is hereby suspended.