Amend CSSB 441 as follows:
(1) In SECTION 1, in Section 151.00394(b), Tax Code, (page
1, line 23) strike "or 151.01011".
(2) In SECTION 2, strike Section 151.0101(a), Tax Code,
(page 2, line 7 through page 3, line 9) and substitute a new
Section 151.0101(a), Tax Code to read as follows:
(a) "Taxable services" means:
(1) amusement services;
(2) cable television services;
(3) personal services;
(4) motor vehicle parking and storage services;
(5) the repair, remodeling, maintenance, and
restoration of tangible personal property, except:
(A) aircraft;
(B) a ship, boat, or other vessel, other than:
(i) a taxable boat or motor as defined by
Section 160.001;
(ii) a sports fishing boat; or
(iii) any other vessel used for pleasure;
(C) the repair, maintenance, and restoration of
a motor vehicle; and
(D) the repair, maintenance, creation, and
restoration of a computer program, including its development and
modification, not sold by the person performing the repair,
maintenance, creation, or restoration service;
(6) telecommunications services;
(7) credit reporting services;
(8) debt collection services;
(9) insurance services;
(10) information services;
(11) real property services;
(12) data processing services;
(13) real property repair and remodeling;
(14) security services; <and>
(15) telephone answering services; and
(16) Internet access service.
(3) Strike SECTION 3 of the bill (page 3, lines 10-15).
(4) Strike SECTION 5 of the bill (page 4, lines 5-12).
(5) In SECTION 6, Section 151.325(b)(1), Tax Code, (page 4,
line 23) strike "or 151.01011".
(6) Insert new SECTIONS 7, 8, 9, and 10 (page 5, between
lines 2 and 3) to read as follows and renumber subsequent SECTIONS
and references to SECTIONS appropriately:
SECTION 7. Subchapter H, Chapter 151, Tax Code, is amended by
adding Section 151.326 to read as follows:
Sec. 151.326. CLOTHING AND FOOTWEAR FOR LIMITED PERIOD. (a)
The sale of an article of clothing or footwear designed to be worn
on or about the human body is exempted from the taxes imposed by
this chapter if:
(1) the sales price of the article is less than $100;
and
(2) the sale takes place during a period beginning at
12:01 a.m. on the first Friday in August and ending at 12 midnight
on the following Sunday.
(b) This section does not apply to:
(1) any special clothing or footwear that is primarily
designed for athletic activity or protective use and that is not
normally worn except when used for the athletic activity or
protective use for which it is designed;
(2) accessories, including jewelry, handbags, luggage,
umbrellas, wallets, watches, and similar items carried on or about
the human body, without regard to whether worn on the body in a
manner characteristic of clothing; and
(3) the rental of clothing or footwear.
(c) On or after January 1, 2000, the governing body of a
local taxing authority may repeal the application of this exemption
in the manner provided by Chapter 326.
SECTION 8. Section 151.3111(b), Tax Code, is amended to read
as follows:
(b) Subsection (a) of this section does not apply to the
performance of a service on:
(1) tangible personal property that would be exempted
solely because of the exempt status of the seller of the property;
(2) tangible personal property that is exempted solely
because of the application of Section 151.303, 151.304, or 151.306
of this code;
(3) motor vehicles, trailers, or semitrailers as
defined, taxed, or exempted by Chapter 152 of this code;
(4) a taxable boat or motor as defined by Section
160.001; <or>
(5) machinery and equipment with a purchase price
greater than $50,000 used exclusively in a commercial timber
operation as described by Section 151.3161(a); or
(6) tangible personal property exempt under Section
151.326.
SECTION 9. Subtitle C, Title 3, Tax Code, is amended by
adding Chapter 326 to read as follows:
CHAPTER 326. STATE SALES AND USE TAX EXEMPTIONS IN RELATION
TO LOCAL SALES AND USE TAXES
Sec. 326.001. APPLICABILITY. This chapter applies to local
sales and use taxes administered and computed under this subtitle
and to which this subtitle applies, including a tax imposed under:
(1) Chapter 285, 775, or 776, Health and Safety Code;
(2) Chapter 326, 334, 363, 377, or 383, Local
Government Code;
(3) Chapter 451, 452, 453, or 457, Transportation
Code; or
(4) the Development Corporation Act of 1979 (Article
5190.6, Vernon's Texas Civil Statutes).
Sec. 326.002. STATE EXEMPTIONS. Notwithstanding any other
law, an exemption to the state sales and use tax provided by
Chapter 151 does not apply to a local sales and use tax to which
this chapter applies if:
(1) the governing body of the local taxing authority
repeals the exemption in the manner provided by Section 326.003;
and
(2) the exemption provided by Chapter 151 specifically
provides that the governing body of the local taxing authority may
repeal the exemption in the manner provided by this chapter.
Sec. 326.003. REPEAL BY LOCAL TAXING AUTHORITY. (a) The
governing body of a taxing authority may by a majority vote adopt
an appropriate order, including an ordinance, to repeal the
application of an exemption described by Section 326.002.
(b) The governing body must hold a public hearing before
taking a vote.
(c) A taxing authority that has repealed the application of
an exemption under this section may in the same manner reinstate
the exemption.
(d) A vote of the governing body of a taxing authority
repealing the application or reinstating the exemption must be
entered in the minutes for the meeting. The secretary of the
taxing authority shall send to the comptroller by certified or
registered mail a copy of the order adopted under this section.
Sec. 326.004. EFFECTIVE DATE. The repeal of the application
of the exemption or a reinstated exemption under Section 326.003
takes effect within the taxing authority on the first day of the
first calendar quarter occurring after the expiration of the first
complete calendar quarter occurring after the date on which the
comptroller receives a copy of the order adopted under that
section.
SECTION 10. (a) The comptroller may adopt emergency rules
for the implementation of Sections 7, 8, and 9 of this Act.
(b) Sections 7, 8, and 9 of this Act take effect on the
first day of the first calendar quarter beginning on or after the
date that they may take effect under Section 39, Article III, Texas
Constitution.
(7) In SECTION 7 of the bill, Strike Section 151.351,
Tax Code (page 5, lines 5-20) and substitute a new Section 151.351,
Tax Code, to read as follows:
Sec. 151.351. INFORMATION SERVICES AND DATA PROCESSING
SERVICES. There are exempted from the taxes imposed by this
chapter 20 percent of the value of information services and data
processing services.
(8) Insert a new appropriately numbered SECTION to read as
follows:
SECTION 11. Section 151.313(a), Tax Code, is amended to read
as follows:
(a) The following items are exempted from the taxes imposed
by this chapter:
(1) a drug or medicine, other than insulin, if
prescribed or dispensed for a human or animal by a licensed
practitioner of the healing arts;
(2) insulin;
(3) a drug or medicine, without regard to whether it
is prescribed or dispensed by a licensed practitioner of the
healing arts, that is labeled with a national drug code issued by
the federal Food and Drug Administration;
(4) a hypodermic syringe or needle;
(5) <(4)> a brace; hearing aid or audio loop;
orthopedic, dental, or prosthetic device; ileostomy, colostomy, or
ileal bladder appliance; or supplies or replacement parts for the
listed items;
(6) <(5)> a therapeutic appliance, device, and any
related supplies specifically designed for those products, if
dispensed or prescribed by a licensed practitioner of the healing
arts, when those items are purchased and used by an individual for
whom the items listed in this subdivision were dispensed or
prescribed;
(7) <(6)> corrective lens and necessary and related
supplies, if dispensed or prescribed by an ophthalmologist or
optometrist;
(8) <(7)> specialized printing or signalling equipment
used by the deaf for the purpose of enabling the deaf to
communicate through the use of an ordinary telephone and all
materials, paper, and printing ribbons used in that equipment;
(9) <(8)> a braille wristwatch, braille writer,
braille paper and braille electronic equipment that connects to
computer equipment, and the necessary adaptive devices and adaptive
computer software;
(10) <(9)> each of the following items if purchased
for use by the blind to enable them to function more independently:
a slate and stylus, print enlarger, light probe, magnifier, white
cane, talking clock, large print terminal, talking terminal, or
harness for guide dog; <and>
(11) <(10)> hospital beds; and
(12) blood glucose monitoring test strips.