By Cuellar, Gutierrez, Craddick, Hilderbran, H.B. No. 209
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting the purchase of certain school supplies,
1-3 school books, and other school materials from the sales tax.
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 151.326 to read as follows:
1-7 Sec. 151.326. SCHOOL SUPPLIES, TEXTBOOKS, BOOKS, AND OTHER
1-8 INSTRUCTIONAL MATERIALS BEFORE START OF SCHOOL. (a) The sale or
1-9 storage, use, or other consumption of a school supply is exempted
1-10 from the taxes imposed by this chapter if the school supply is
1-11 purchased:
1-12 (1) for use by a student in a class in a public or
1-13 private elementary or secondary school, including textbooks, books,
1-14 and other instructional materials;
1-15 (2) during August; and
1-16 (3) for a sales price of less than $75 per item.
1-17 (b) For purposes of this exemption, "school supply" means:
1-18 (1) crayons;
1-19 (2) scissors;
1-20 (3) glue, paste, and glue sticks;
1-21 (4) pencils;
1-22 (5) pens;
1-23 (6) erasers;
1-24 (7) rulers;
1-25 (8) markers;
2-1 (9) highlighters;
2-2 (10) paper, including loose-leaf ruled notebook paper,
2-3 copy paper, graph paper, tracing paper, manila paper, colored
2-4 paper, poster board, and construction paper;
2-5 (11) writing tablets;
2-6 (12) spiral notebooks;
2-7 (13) bound composition notebooks;
2-8 (14) pocket folders;
2-9 (15) plastic folders;
2-10 (16) expandable portfolios;
2-11 (17) manila folders;
2-12 (18) three-ring binders that are three inches or less
2-13 in capacity;
2-14 (19) backpacks and zipper pencil bags;
2-15 (20) school supply boxes;
2-16 (21) clipboards;
2-17 (22) index cards;
2-18 (23) index card boxes;
2-19 (24) calculators;
2-20 (25) protractors;
2-21 (26) compasses;
2-22 (27) music notebooks;
2-23 (28) sketch or drawing pads;
2-24 (29) paintbrushes;
2-25 (30) watercolors;
2-26 (31) acrylic, tempera, or oil paints;
2-27 (32) tape, including masking tape and Scotch tape;
3-1 (33) clay and glazes;
3-2 (34) pencil sharpeners;
3-3 (35) thesauruses; and
3-4 (36) dictionaries.
3-5 (c) A retailer is not required to obtain an exemption
3-6 certificate stating that the school supplies are purchased for use
3-7 by a student in a class in a public or private elementary or
3-8 secondary school unless the supplies are purchased in a quantity
3-9 that indicates that the supplies are not purchased for use by a
3-10 student in a class in a public or private elementary or secondary
3-11 school.
3-12 SECTION 2. (a) Notwithstanding any other provision of this
3-13 Act, the governing body of a local taxing authority that imposes a
3-14 local sales and use tax may repeal an exemption to that tax
3-15 authorized by this Act if the governing body finds by an
3-16 appropriate order, including an ordinance, that the exemption would
3-17 materially impair the obligation of any contract existing at the
3-18 time this Act goes into effect and to which the local taxing
3-19 authority is a party.
3-20 (b) The secretary of the local taxing authority adopting an
3-21 order under this section shall send to the comptroller by certified
3-22 or registered mail a copy of the order.
3-23 (c) The repeal of the exemption takes effect on the first
3-24 day of the month following the expiration of the calendar quarter
3-25 occurring after the date on which the comptroller receives a copy
3-26 of the order.
3-27 SECTION 3. (a) This Act takes effect on the first day of
4-1 the first calendar quarter beginning on or after the date that it
4-2 may take effect under Section 39, Article III, Texas Constitution.
4-3 (b) The change in law made by this Act does not affect taxes
4-4 imposed before the effective date of this Act, and the law in
4-5 effect before the effective date of this Act is continued in effect
4-6 for purposes of the liability for and collection of those taxes.
4-7 SECTION 4. The importance of this legislation and the
4-8 crowded condition of the calendars in both houses create an
4-9 emergency and an imperative public necessity that the
4-10 constitutional rule requiring bills to be read on three several
4-11 days in each house be suspended, and this rule is hereby suspended,
4-12 and that this Act take effect and be in force according to its
4-13 terms, and it is so enacted.