By Ratliff S.B. No. 767 75R4732 CBH-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the application of the sales and use tax to certain 1-3 materials used in commercial timber operations. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 151.3161, Tax Code, is amended by 1-6 amending Subsection (c) and adding Subsection (d) to read as 1-7 follows: 1-8 (c) A fertilizer, fungicide, insecticide, herbicide, 1-9 defoliant, or desiccant used exclusively in a commercial timber 1-10 operation to produce timber products to be sold in the regular 1-11 course of business of the commercial timber operation is exempted 1-12 from the tax imposed by this chapter. 1-13 (d) In this section, "machinery or equipment" means only 1-14 complete systems or units that operate or perform a particular 1-15 function independently of other units or components. The term does 1-16 not include: 1-17 (1) repair or replacement parts, modules, accessories, 1-18 or components; or 1-19 (2) handheld manual or power tools, including chain 1-20 saws and axes. 1-21 SECTION 2. (a) This Act takes effect on the first day of 1-22 the first calendar quarter beginning on or after the earliest date 1-23 that it may take effect under Section 39, Article III, Texas 1-24 Constitution. 2-1 (b) The change in law made by this Act does not affect taxes 2-2 imposed before the effective date of this Act, and the law in 2-3 effect before that date is continued in effect for purposes of the 2-4 liability for and collection of those taxes. 2-5 SECTION 3. The importance of this legislation and the 2-6 crowded condition of the calendars in both houses create an 2-7 emergency and an imperative public necessity that the 2-8 constitutional rule requiring bills to be read on three several 2-9 days in each house be suspended, and this rule is hereby suspended, 2-10 and that this Act take effect and be in force according to its 2-11 terms, and it is so enacted.