By Ellis                                               S.B. No. 301
         76R2886 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to sales tax exemptions for children's clothing.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
 1-5     by adding Section 151.325 to read as follows:
 1-6           Sec. 151.325.  CLOTHING FOR CHILDREN PRIOR TO START OF
 1-7     SCHOOL.  (a)  The sale during August of an article of clothing or
 1-8     footwear designed to be worn on or about the body of a person
 1-9     younger than 13 years of age is exempted from the taxes imposed by
1-10     this chapter if the sales price of the article is less than $500.
1-11           (b)  This section does not apply to:
1-12                 (1)  any special clothing or footwear primarily
1-13     designed for athletic activity or protective use and which is not
1-14     normally worn except when used for the athletic activity or
1-15     protective use for which it is designed; and
1-16                 (2)  accessories, including jewelry, handbags, luggage,
1-17     umbrellas, wallets, watches, and similar items carried on or about
1-18     the human body, without regard to whether worn on the body in a
1-19     manner characteristic of clothing.
1-20           SECTION 2.  (a)  This Act takes effect on the first day of
1-21     the first calendar quarter beginning on or after the date that it
1-22     may take effect under Section 39, Article III, Texas Constitution.
1-23           (b)  The change in law made by this Act does not affect taxes
1-24     imposed before the effective date of this Act, and the law in
 2-1     effect before the effective date of this Act is continued in effect
 2-2     for purposes of the liability for and collection of those taxes.
 2-3           SECTION 3.  The importance of this legislation and the
 2-4     crowded condition of the calendars in both houses create an
 2-5     emergency and an imperative public necessity that the
 2-6     constitutional rule requiring bills to be read on three several
 2-7     days in each house be suspended, and this rule is hereby suspended,
 2-8     and that this Act take effect and be in force according to its
 2-9     terms, and it is so enacted.