By Maxey                                               H.B. No. 113
         76R1436 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to sales tax exemptions for children's clothing and school
 1-3     supplies.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
 1-6     by adding Section 151.325 to read as follows:
 1-7           Sec. 151.325.  CLOTHING FOR CHILDREN PRIOR TO START OF
 1-8     SCHOOL.  (a)  The sale during August of an article of clothing or
 1-9     footwear designed to be worn on or about the body of a person
1-10     younger than 13 years of age is exempted from the taxes imposed by
1-11     this chapter.
1-12           (b)  This section does not apply to:
1-13                 (1)  any special clothing or footwear primarily
1-14     designed for athletic activity or protective use and which is not
1-15     normally worn except when used for the athletic activity or
1-16     protective use for which it is designed; and
1-17                 (2)  accessories, including jewelry, handbags, luggage,
1-18     umbrellas, wallets, watches, and similar items carried on or about
1-19     the human body, without regard to whether worn on the body in a
1-20     manner characteristic of clothing.
1-21           SECTION 2.  Subchapter H, Chapter 151, Tax Code, is amended
1-22     by adding Section 151.326 to read as follows:
1-23           Sec. 151.326.  SCHOOL SUPPLIES PRIOR TO START OF SCHOOL.  (a)
1-24     A tangible item is exempted from the  taxes imposed by this chapter
 2-1     if the item is:
 2-2                 (1)  required for use by a student in a class in a
 2-3     public or private elementary or secondary school;
 2-4                 (2)  on a list issued before the beginning of the
 2-5     school year by the teacher of the class or the school in which the
 2-6     class takes place; and
 2-7                 (3)  purchased during August.
 2-8           (b)  Except as provided by Subsection (c), the purchaser must
 2-9     give the seller an exemption certificate that certifies in writing
2-10     to the seller that the tangible item qualifies as exempt under
2-11     Subsection (a).
2-12           (c)  An exemption certificate is not required if the seller
2-13     of the tangible item maintains a separate section or display that
2-14     contains only items that qualify as exempt under Subsection (a).
2-15           SECTION 3.  (a)  This Act takes effect on the first day of
2-16     the first calendar quarter beginning on or after the date that it
2-17     may take effect under Section 39, Article III, Texas Constitution.
2-18           (b)  The change in law made by this Act does not affect taxes
2-19     imposed before the effective date of this Act, and the law in
2-20     effect before the effective date of this Act is continued in effect
2-21     for purposes of the liability for and collection of those taxes.
2-22           SECTION 4.  The importance of this legislation and the
2-23     crowded condition of the calendars in both houses create an
2-24     emergency and an imperative public necessity that the
2-25     constitutional rule requiring bills to be read on three several
2-26     days in each house be suspended, and this rule is hereby suspended,
2-27     and that this Act take effect and be in force according to its
 3-1     terms, and it is so enacted.