By Gutierrez, Craddick, Hilderbran, Cuellar, H.B. No. 2372
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting certain drugs, medicines, and medical devices
1-3 from the sales tax.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.313(a), Tax Code, is amended to read
1-6 as follows:
1-7 (a) The following items are exempted from the taxes imposed
1-8 by this chapter:
1-9 (1) a drug or medicine, other than insulin, if
1-10 prescribed or dispensed for a human or animal by a licensed
1-11 practitioner of the healing arts;
1-12 (2) insulin;
1-13 (3) a drug or medicine, without regard to whether it
1-14 is prescribed or dispensed by a licensed practitioner of the
1-15 healing arts, that is labeled with a national drug code issued by
1-16 the federal Food and Drug Administration;
1-17 (4) a hypodermic syringe or needle;
1-18 (5) [(4)] a brace; hearing aid or audio loop;
1-19 orthopedic, dental, or prosthetic device; ileostomy, colostomy, or
1-20 ileal bladder appliance; or supplies or replacement parts for the
1-21 listed items;
1-22 (6) [(5)] a therapeutic appliance, device, and any
1-23 related supplies specifically designed for those products, if
1-24 dispensed or prescribed by a licensed practitioner of the healing
1-25 arts, when those items are purchased and used by an individual for
2-1 whom the items listed in this subdivision were dispensed or
2-2 prescribed;
2-3 (7) [(6)] corrective lens and necessary and related
2-4 supplies, if dispensed or prescribed by an ophthalmologist or
2-5 optometrist;
2-6 (8) [(7)] specialized printing or signalling equipment
2-7 used by the deaf for the purpose of enabling the deaf to
2-8 communicate through the use of an ordinary telephone and all
2-9 materials, paper, and printing ribbons used in that equipment;
2-10 (9) [(8)] a braille wristwatch, braille writer,
2-11 braille paper and braille electronic equipment that connects to
2-12 computer equipment, and the necessary adaptive devices and adaptive
2-13 computer software;
2-14 (10) [(9)] each of the following items if purchased
2-15 for use by the blind to enable them to function more independently:
2-16 a slate and stylus, print enlarger, light probe, magnifier, white
2-17 cane, talking clock, large print terminal, talking terminal, or
2-18 harness for guide dog; [and]
2-19 (11) [(10)] hospital beds; and
2-20 (12) blood glucose monitoring test strips.
2-21 SECTION 2. (a) Notwithstanding any other provision of this
2-22 Act, the governing body of a local taxing authority that imposes a
2-23 local sales and use tax may repeal an exemption to that tax
2-24 authorized by this Act if the governing body finds by an
2-25 appropriate order, including an ordinance, that the exemption would
2-26 materially impair the obligation of any contract existing at the
2-27 time this Act goes into effect and to which the local taxing
3-1 authority is a party.
3-2 (b) The secretary of the local taxing authority adopting an
3-3 order under this section shall send to the comptroller by certified
3-4 or registered mail a copy of the order.
3-5 (c) The repeal of the exemption takes effect on the first
3-6 day of the month following the expiration of the calendar quarter
3-7 occurring after the date on which the comptroller receives a copy
3-8 of the order.
3-9 SECTION 3. (a) This Act takes effect on the first day of
3-10 the first calendar quarter beginning on or after the date that it
3-11 may take effect under Section 39, Article III, Texas Constitution.
3-12 (b) The change in law made by this Act does not affect taxes
3-13 imposed before the effective date of this Act, and the law in
3-14 effect before the effective date of this Act is continued in effect
3-15 for purposes of the liability for and collection of those taxes.
3-16 SECTION 4. The importance of this legislation and the
3-17 crowded condition of the calendars in both houses create an
3-18 emergency and an imperative public necessity that the
3-19 constitutional rule requiring bills to be read on three several
3-20 days in each house be suspended, and this rule is hereby suspended,
3-21 and that this Act take effect and be in force according to its
3-22 terms, and it is so enacted.