1-1 By: Gutierrez, et al. (Senate Sponsor - Ellis) H.B. No. 2371
1-2 (In the Senate - Received from the House May 10, 1999;
1-3 May 10, 1999, read first time and referred to Committee on Finance;
1-4 May 14, 1999, reported favorably by the following vote: Yeas 9,
1-5 Nays 0; May 14, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to exempting diapers from the sales tax.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 151.313(a), Tax Code, is amended to read
1-11 as follows:
1-12 (a) The following items are exempted from the taxes imposed
1-13 by this chapter:
1-14 (1) a drug or medicine, other than insulin, if
1-15 prescribed or dispensed for a human or animal by a licensed
1-16 practitioner of the healing arts;
1-17 (2) insulin;
1-18 (3) a hypodermic syringe or needle;
1-19 (4) a brace; hearing aid or audio loop; orthopedic,
1-20 dental, or prosthetic device; ileostomy, colostomy, or ileal
1-21 bladder appliance; or supplies or replacement parts for the listed
1-22 items;
1-23 (5) a therapeutic appliance, device, and any related
1-24 supplies specifically designed for those products, if dispensed or
1-25 prescribed by a licensed practitioner of the healing arts, when
1-26 those items are purchased and used by an individual for whom the
1-27 items listed in this subdivision were dispensed or prescribed;
1-28 (6) corrective lens and necessary and related
1-29 supplies, if dispensed or prescribed by an ophthalmologist or
1-30 optometrist;
1-31 (7) specialized printing or signalling equipment used
1-32 by the deaf for the purpose of enabling the deaf to communicate
1-33 through the use of an ordinary telephone and all materials, paper,
1-34 and printing ribbons used in that equipment;
1-35 (8) a braille wristwatch, braille writer, braille
1-36 paper and braille electronic equipment that connects to computer
1-37 equipment, and the necessary adaptive devices and adaptive computer
1-38 software;
1-39 (9) each of the following items if purchased for use
1-40 by the blind to enable them to function more independently: a
1-41 slate and stylus, print enlarger, light probe, magnifier, white
1-42 cane, talking clock, large print terminal, talking terminal, or
1-43 harness for guide dog; [and]
1-44 (10) hospital beds; and
1-45 (11) a diaper other than a diaper purchased, sold, or
1-46 used by a diaper service.
1-47 SECTION 2. (a) Notwithstanding any other provision of this
1-48 Act, the governing body of a local taxing authority that imposes a
1-49 local sales and use tax may repeal an exemption to that tax
1-50 authorized by this Act if the governing body finds by an
1-51 appropriate order, including an ordinance, that the exemption would
1-52 materially impair the obligation of any contract existing at the
1-53 time this Act goes into effect and to which the local taxing
1-54 authority is a party.
1-55 (b) The secretary of the local taxing authority adopting an
1-56 order under this section shall send to the comptroller by certified
1-57 or registered mail a copy of the order.
1-58 (c) The repeal of the exemption takes effect on the first
1-59 day of the month following the expiration of the calendar quarter
1-60 occurring after the date on which the comptroller receives a copy
1-61 of the order.
1-62 SECTION 3. (a) This Act takes effect on the first day of
1-63 the first calendar quarter beginning on or after the date that it
1-64 may take effect under Section 39, Article III, Texas Constitution.
2-1 (b) The change in law made by this Act does not affect taxes
2-2 imposed before the effective date of this Act, and the law in
2-3 effect before the effective date of this Act is continued in effect
2-4 for purposes of the liability for and collection of those taxes.
2-5 SECTION 4. The importance of this legislation and the
2-6 crowded condition of the calendars in both houses create an
2-7 emergency and an imperative public necessity that the
2-8 constitutional rule requiring bills to be read on three several
2-9 days in each house be suspended, and this rule is hereby suspended,
2-10 and that this Act take effect and be in force according to its
2-11 terms, and it is so enacted.
2-12 * * * * *