By Kamel                                               H.B. No. 139

      75R409 DAK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to exempting certain better business bureaus from the

 1-3     sales and use tax.

 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;

1-15                 (2)  an organization qualifying for an exemption from

1-16     federal income taxes under Section 501(c)(3), (4), (8), (10), or

1-17     (19), Internal Revenue Code, of the item sold, leased, rented,

1-18     stored, used, or consumed relates to the purpose of the exempted

1-19     organization and the item is not used for the personal benefit of a

1-20     private stockholder or individual;

1-21                 (3)  a nonprofit organization engaged exclusively in

1-22     providing athletic competition among persons under 19 years old if

1-23     no financial benefit goes to an individual or shareholder;

1-24                 (4)  a company, department, or association organized

 2-1     for the purpose of answering fire alarms and extinguishing fires or

 2-2     for the purpose of answering fire alarms, extinguishing fires, and

 2-3     providing emergency medical services, the members of which receive

 2-4     no compensation or only nominal compensation for their services

 2-5     rendered, if the taxable item is used exclusively by the company,

 2-6     department, or association;  or

 2-7                 (5)  a better business bureau, a chamber of commerce,

 2-8     or a convention and tourist promotional agency representing at

 2-9     least one Texas city or county if the better business bureau, the

2-10     chamber of commerce, or the agency is not organized for profit and

2-11     no part of its net earnings inures to a private shareholder or

2-12     other individual.

2-13           SECTION 2.  (a)  This Act takes effect on the first day of

2-14     the first calendar quarter beginning on or after the date that it

2-15     may take effect under Section 39, Article III, Texas 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 from and after its

2-26     passage, and it is so enacted.