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.