By Gutierrez H.B. No. 86
76R1241 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to sales tax exemptions.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 151.313(a), Tax Code, is amended to read
1-5 as follows:
1-6 (a) The following items are exempted from the taxes imposed
1-7 by this chapter:
1-8 (1) a drug or medicine[, other than insulin, if
1-9 prescribed or dispensed for a human or animal by a licensed
1-10 practitioner of the healing arts];
1-11 (2) a diaper [insulin];
1-12 (3) a hypodermic syringe or needle;
1-13 (4) a brace; hearing aid or audio loop; orthopedic,
1-14 dental, or prosthetic device; ileostomy, colostomy, or ileal
1-15 bladder appliance; or supplies or replacement parts for the listed
1-16 items;
1-17 (5) a therapeutic appliance, device, and any related
1-18 supplies specifically designed for those products, if dispensed or
1-19 prescribed by a licensed practitioner of the healing arts, when
1-20 those items are purchased and used by an individual for whom the
1-21 items listed in this subdivision were dispensed or prescribed;
1-22 (6) corrective lens and necessary and related
1-23 supplies, if dispensed or prescribed by an ophthalmologist or
1-24 optometrist;
2-1 (7) specialized printing or signalling equipment used
2-2 by the deaf for the purpose of enabling the deaf to communicate
2-3 through the use of an ordinary telephone and all materials, paper,
2-4 and printing ribbons used in that equipment;
2-5 (8) a braille wristwatch, braille writer, braille
2-6 paper and braille electronic equipment that connects to computer
2-7 equipment, and the necessary adaptive devices and adaptive computer
2-8 software;
2-9 (9) each of the following items if purchased for use
2-10 by the blind to enable them to function more independently: a
2-11 slate and stylus, print enlarger, light probe, magnifier, white
2-12 cane, talking clock, large print terminal, talking terminal, or
2-13 harness for guide dog; and
2-14 (10) hospital beds.
2-15 SECTION 2. Subchapter H, Chapter 151, Tax Code, is amended
2-16 by adding Section 151.325 to read as follows:
2-17 Sec. 151.325. CERTAIN PRICED CLOTHING OR FOOTWEAR; FABRICS.
2-18 (a) The sale of an article of clothing or footwear intended to be
2-19 worn on or about the human body is exempted from taxes imposed by
2-20 this chapter if the sales price of the article is less than $50.
2-21 (b) Subsection (a) does not apply to:
2-22 (1) an article of clothing or footwear primarily
2-23 designed for athletic activity or protective use and that is not
2-24 normally worn except when used for the athletic activity or
2-25 protective use for which it is designed; and
2-26 (2) accessories, including jewelry, handbags, luggage,
2-27 umbrellas, wallets, watches, and similar items carried on or about
3-1 the human body, without regard to whether worn on the body in a
3-2 manner characteristic of clothing.
3-3 (c) The sale of tangible personal property intended to be a
3-4 component part of an article of clothing or footwear for the human
3-5 body, including fabric, thread, knitting yarn, buttons, and
3-6 zippers, is exempted from the taxes imposed by this chapter if:
3-7 (1) the sales price of the property is less than $50;
3-8 and
3-9 (2) the property is purchased by a person who is not
3-10 in the business of fabricating or manufacturing clothing or
3-11 footwear for sale.
3-12 SECTION 3. Subchapter H, Chapter 151, Tax Code, is amended
3-13 by adding Section 151.326 to read as follows:
3-14 Sec. 151.326. SCHOOL SUPPLIES PRIOR TO START OF SCHOOL. (a)
3-15 A tangible item is exempted from the taxes imposed by this chapter
3-16 if the item is:
3-17 (1) required for use by a student in a class in a
3-18 public or private elementary or secondary school;
3-19 (2) on a list issued before the beginning of the
3-20 school year by the teacher of the class or the school in which the
3-21 class takes place; and
3-22 (3) purchased during August.
3-23 (b) Except as provided by Subsection (c), the purchaser must
3-24 give the seller an exemption certificate that certifies in writing
3-25 to the seller that the tangible item qualifies as exempt under
3-26 Subsection (a).
3-27 (c) An exemption certificate is not required if the seller
4-1 of the tangible item maintains a separate section or display that
4-2 contains only items that qualify as exempt under Subsection (a).
4-3 SECTION 4. (a) This Act takes effect on the first day of
4-4 the first calendar quarter beginning on or after the date that it
4-5 may take effect under Section 39, Article III, Texas Constitution.
4-6 (b) The change in law made by this Act does not affect taxes
4-7 imposed before the effective date of this Act, and the law in
4-8 effect before the effective date of this Act is continued in effect
4-9 for purposes of the liability for and collection of those taxes.
4-10 SECTION 5. The importance of this legislation and the
4-11 crowded condition of the calendars in both houses create an
4-12 emergency and an imperative public necessity that the
4-13 constitutional rule requiring bills to be read on three several
4-14 days in each house be suspended, and this rule is hereby suspended,
4-15 and that this Act take effect and be in force according to its
4-16 terms, and it is so enacted.