By: Ellis, et al. S.B. No. 441
A BILL TO BE ENTITLED
AN ACT
1-1 relating to exemptions from the sales tax.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subsection (a), Section 151.313, Tax Code, is
1-4 amended to read as follows:
1-5 (a) The following items are exempted from the taxes imposed
1-6 by this chapter:
1-7 (1) a drug or medicine, other than insulin, if
1-8 prescribed or dispensed for a human or animal by a licensed
1-9 practitioner of the healing arts;
1-10 (2) insulin;
1-11 (3) a drug or medicine, without regard to whether it
1-12 is prescribed or dispensed by a licensed practitioner of the
1-13 healing arts, that is:
1-14 (A) labeled with a national drug code issued by
1-15 the federal Food and Drug Administration; and
1-16 (B) specifically formulated and labeled for
1-17 children 12 years of age or younger;
1-18 (4) a diaper;
1-19 (5) a hypodermic syringe or needle;
1-20 (6) [(4)] a brace; hearing aid or audio loop;
1-21 orthopedic, dental, or prosthetic device; ileostomy, colostomy, or
1-22 ileal bladder appliance; or supplies or replacement parts for the
1-23 listed items;
1-24 (7) [(5)] a therapeutic appliance, device, and any
2-1 related supplies specifically designed for those products, if
2-2 dispensed or prescribed by a licensed practitioner of the healing
2-3 arts, when those items are purchased and used by an individual for
2-4 whom the items listed in this subdivision were dispensed or
2-5 prescribed;
2-6 (8) [(6)] corrective lens and necessary and related
2-7 supplies, if dispensed or prescribed by an ophthalmologist or
2-8 optometrist;
2-9 (9) [(7)] specialized printing or signalling equipment
2-10 used by the deaf for the purpose of enabling the deaf to
2-11 communicate through the use of an ordinary telephone and all
2-12 materials, paper, and printing ribbons used in that equipment;
2-13 (10) [(8)] a braille wristwatch, braille writer,
2-14 braille paper and braille electronic equipment that connects to
2-15 computer equipment, and the necessary adaptive devices and adaptive
2-16 computer software;
2-17 (11) [(9)] each of the following items if purchased
2-18 for use by the blind to enable them to function more independently:
2-19 a slate and stylus, print enlarger, light probe, magnifier, white
2-20 cane, talking clock, large print terminal, talking terminal, or
2-21 harness for guide dog; and
2-22 (12) [(10)] hospital beds.
2-23 SECTION 2. Subchapter H, Chapter 151, Tax Code, is amended
2-24 by adding Section 151.325 to read as follows:
2-25 Sec. 151.325. CLOTHING AND FOOTWEAR FOR LIMITED PERIOD.
2-26 (a) The sale of an article of clothing or footwear designed to be
3-1 worn on or about the human body is exempted from the taxes imposed
3-2 by this chapter if:
3-3 (1) the sales price of the article is less than $200;
3-4 and
3-5 (2) the sale takes place during a period beginning at
3-6 12:01 a.m. on the first Saturday in August and ending at 12
3-7 midnight on the second Friday after the first Saturday in August.
3-8 (b) This section does not apply to:
3-9 (1) any special clothing or footwear that is primarily
3-10 designed for athletic activity or protective use and that is not
3-11 normally worn except when used for the athletic activity or
3-12 protective use for which it is designed; and
3-13 (2) accessories, including jewelry, handbags, luggage,
3-14 umbrellas, wallets, watches, and similar items carried on or about
3-15 the human body, without regard to whether worn on the body in a
3-16 manner characteristic of clothing.
3-17 SECTION 3. (a) This Act takes effect October 1, 1999.
3-18 (b) The change in law made by this Act does not affect taxes
3-19 imposed before the effective date of this Act, and the law in
3-20 effect before the effective date of this Act is continued in effect
3-21 for purposes of the liability for and collection of those taxes.
3-22 SECTION 4. The importance of this legislation and the
3-23 crowded condition of the calendars in both houses create an
3-24 emergency and an imperative public necessity that the
3-25 constitutional rule requiring bills to be read on three several
3-26 days in each house be suspended, and this rule is hereby suspended.