By Dutton H.B. No. 2280
76R7794 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 bought in August.
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. CERTAIN PRICED CHILDREN'S CLOTHING OR
1-8 FOOTWEAR; FABRICS. (a) The sale of an article of children's or
1-9 youth's clothing or footwear intended to be worn on or about the
1-10 human body is exempted from taxes imposed by this chapter if:
1-11 (1) the sales price of the article is less than $100;
1-12 and
1-13 (2) the article is purchased during August.
1-14 (b) Subsection (a) does not apply to:
1-15 (1) an article of clothing or footwear primarily
1-16 designed for athletic activity or protective use and that is not
1-17 normally worn except when used for the athletic activity or
1-18 protective use for which it is designed; and
1-19 (2) accessories, including jewelry, handbags, luggage,
1-20 umbrellas, wallets, watches, and similar items carried on or about
1-21 the human body, without regard to whether worn on the body in a
1-22 manner characteristic of clothing.
1-23 (c) The sale of tangible personal property intended to be a
1-24 component part of an article of clothing or footwear for the human
2-1 body, including fabric, thread, knitting yarn, buttons, and
2-2 zippers, is exempted from the taxes imposed by this chapter if:
2-3 (1) the sales price of the property is less than $100;
2-4 (2) the property is purchased by a person who is not
2-5 in the business of fabricating or manufacturing clothing or
2-6 footwear for sale; and
2-7 (3) the property is purchased during August.
2-8 (d) An exemption certificate in which the purchaser
2-9 certifies that the article is to be worn by a child or youth is
2-10 sufficient to establish that fact.
2-11 SECTION 2. Subchapter H, Chapter 151, Tax Code, is amended
2-12 by adding Section 151.326 to read as follows:
2-13 Sec. 151.326. SCHOOL SUPPLIES PRIOR TO START OF SCHOOL. (a)
2-14 A tangible item is exempted from the taxes imposed by this chapter
2-15 if the item:
2-16 (1) is required for use by a student in a class in a
2-17 public or private elementary or secondary school;
2-18 (2) is on a list issued before the beginning of the
2-19 school year by the teacher of the class or the school in which the
2-20 class takes place;
2-21 (3) is purchased during August; and
2-22 (4) has a sales price of less than $100.
2-23 (b) Except as provided by Subsection (c), the purchaser must
2-24 give the seller an exemption certificate that certifies in writing
2-25 to the seller that the tangible item qualifies as exempt under
2-26 Subsection (a).
2-27 (c) An exemption certificate is not required if the seller
3-1 of the tangible item maintains a separate section or display that
3-2 contains only items that qualify as exempt under Subsection (a).
3-3 SECTION 3. (a) This Act takes effect on the first day of
3-4 the first calendar quarter beginning on or after the date that it
3-5 may take effect under Section 39, Article III, Texas Constitution.
3-6 (b) The change in law made by this Act does not affect taxes
3-7 imposed before the effective date of this Act, and the law in
3-8 effect before the effective date of this Act is continued in effect
3-9 for purposes of the liability for and collection of those taxes.
3-10 SECTION 4. The importance of this legislation and the
3-11 crowded condition of the calendars in both houses create an
3-12 emergency and an imperative public necessity that the
3-13 constitutional rule requiring bills to be read on three several
3-14 days in each house be suspended, and this rule is hereby suspended,
3-15 and that this Act take effect and be in force according to its
3-16 terms, and it is so enacted.