By Hunter                                        H.B. No. 363

      75R1844 DAK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to exempting from the sales tax property used in producing

 1-3     a motion picture or a video or audio recording.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 151.318(p), Tax Code, is amended to read

 1-6     as follows:

 1-7           (p)  The production for consideration of a motion picture or

 1-8     a video or audio recording, a copy of which is sold or offered for

 1-9     ultimate sale, licensed, distributed, broadcast, or otherwise

1-10     exhibited, is considered "manufacturing" for the purposes of this

1-11     section.  An exemption under this section shall apply to all

1-12     machinery and equipment that is rented or leased for such a

1-13     production, including those items listed under Subsection (c).

1-14           SECTION 2.  (a)  This Act takes effect on the first day of

1-15     the first calendar quarter beginning on or after the earliest date

1-16     that it may take effect under Section 39, Article III, Texas

1-17     Constitution.

1-18           (b)  The change in law made by this Act does not affect taxes

1-19     imposed before the effective date of this Act, and the law in

1-20     effect before the effective date of this Act is continued in effect

1-21     for purposes of the liability for and collection of those taxes.

1-22           SECTION 3.  The importance of this legislation and the

1-23     crowded condition of the calendars in both houses create an

1-24     emergency and an imperative public necessity that the

 2-1     constitutional rule requiring bills to be read on three several

 2-2     days in each house be suspended, and this rule is hereby suspended,

 2-3     and that this Act take effect and be in force according to its

 2-4     terms, and it is so enacted.