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.