By Raymond                                      H.B. No. 1604

      75R497 DAK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to tax-free sales by certain public service organizations.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 151.310, Tax Code, is amended by adding

 1-5     Subsection (f) to read as follows:

 1-6           (f)  An organization that qualifies for an exemption under

 1-7     Subsection (a)(4) and each chapter of the organization may hold any

 1-8     number of tax-free sales or auctions during a calendar year.  The

 1-9     sale of a taxable item by the  qualified organization or chapter of

1-10     the organization at a tax-free sale or auction is exempted from the

1-11     sales tax imposed by Subchapter C.  The storage, use, or

1-12     consumption of a taxable item acquired from the qualified

1-13     organization or chapter of the organization at a tax-free sale or

1-14     auction is exempted from the use tax imposed by Subchapter D until

1-15     the item is resold or subsequently transferred.

1-16           SECTION 2.  The importance of this legislation and the

1-17     crowded condition of the calendars in both houses create an

1-18     emergency and an imperative public necessity that the

1-19     constitutional rule requiring bills to be read on three several

1-20     days in each house be suspended, and this rule is hereby suspended,

1-21     and that this Act take effect and be in force from and after its

1-22     passage, and it is so enacted.