By Cuellar                                             H.B. No. 209
         76R1609 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting the purchase of certain school supplies from
 1-3     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 PRIOR TO START OF SCHOOL.  (a)
 1-8     A tangible item is exempted from the  taxes imposed by this chapter
 1-9     if the item is:
1-10                 (1)  required for use by a student in a class in a
1-11     public or private elementary or secondary school;
1-12                 (2)  on a list issued before the beginning of the
1-13     school year by the teacher of the class or the school in which the
1-14     class takes place; and
1-15                 (3)  purchased during August.
1-16           (b)  Except as provided by Subsection (c), the purchaser must
1-17     give the seller an exemption certificate that certifies in writing
1-18     to the seller that the tangible item qualifies as exempt under
1-19     Subsection (a).
1-20           (c)  An exemption certificate is not required if the seller
1-21     of the tangible item maintains a separate section or display that
1-22     contains only items that qualify as exempt under Subsection (a).
1-23           SECTION 2.  (a)  This Act takes effect on the first day of
1-24     the first calendar quarter beginning on or after the date that it
 2-1     may take effect under Section 39, Article III, Texas Constitution.
 2-2           (b)  The change in law made by this Act does not affect taxes
 2-3     imposed before the effective date of this Act, and the law in
 2-4     effect before the effective date of this Act is continued in effect
 2-5     for purposes of the liability for and collection of those taxes.
 2-6           SECTION 3.  The importance of this legislation and the
 2-7     crowded condition of the calendars in both houses create an
 2-8     emergency and an imperative public necessity that the
 2-9     constitutional rule requiring bills to be read on three several
2-10     days in each house be suspended, and this rule is hereby suspended,
2-11     and that this Act take effect and be in force according to its
2-12     terms, and it is so enacted.