By Ellis S.B. No. 441
76R5684 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exemptions from the sales tax.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 151.313(a), Tax Code, is amended to read
1-5 as follows:
1-6 (a) The following items are exempted from the taxes imposed
1-7 by this chapter:
1-8 (1) a drug or medicine[, other than insulin, if
1-9 prescribed or dispensed for a human or animal by a licensed
1-10 practitioner of the healing arts];
1-11 (2) a diaper [insulin];
1-12 (3) a hypodermic syringe or needle;
1-13 (4) a brace; hearing aid or audio loop; orthopedic,
1-14 dental, or prosthetic device; ileostomy, colostomy, or ileal
1-15 bladder appliance; or supplies or replacement parts for the listed
1-16 items;
1-17 (5) a medical or therapeutic appliance, device, and
1-18 any related supplies specifically designed for those products,
1-19 other than a contraceptive unless the contraceptive is [if]
1-20 dispensed or prescribed by a licensed practitioner of the healing
1-21 arts[, when those items are purchased and used by an individual for
1-22 whom the items listed in this subdivision were dispensed or
1-23 prescribed];
1-24 (6) corrective lens and necessary and related
2-1 supplies, if dispensed or prescribed by an ophthalmologist or
2-2 optometrist;
2-3 (7) specialized printing or signalling equipment used
2-4 by the deaf for the purpose of enabling the deaf to communicate
2-5 through the use of an ordinary telephone and all materials, paper,
2-6 and printing ribbons used in that equipment;
2-7 (8) a braille wristwatch, braille writer, braille
2-8 paper and braille electronic equipment that connects to computer
2-9 equipment, and the necessary adaptive devices and adaptive computer
2-10 software;
2-11 (9) each of the following items if purchased for use
2-12 by the blind to enable them to function more independently: a
2-13 slate and stylus, print enlarger, light probe, magnifier, white
2-14 cane, talking clock, large print terminal, talking terminal, or
2-15 harness for guide dog; and
2-16 (10) hospital beds.
2-17 SECTION 2. Section 151.323, Tax Code, is amended to read as
2-18 follows:
2-19 Sec. 151.323. CERTAIN TELECOMMUNICATIONS SERVICES. (a)
2-20 There are exempted from the taxes imposed by this chapter the
2-21 receipts from the sale, use, or other consumption in this state
2-22 of:
2-23 (1) long-distance telecommunications services that are
2-24 not both originated from and billed to a telephone number or
2-25 billing or service address within Texas;
2-26 (2) access to a local exchange telephone company's
2-27 network by a regulated provider of telecommunications services;
3-1 [and]
3-2 (3) broadcasts, other than cable television service,
3-3 by commercial radio or television stations licensed or regulated by
3-4 the Federal Communications Commission; and
3-5 (4) access to the Internet.
3-6 (b) In this section, "Internet" means the largest
3-7 nonproprietary nonprofit cooperative public computer network,
3-8 popularly known as the Internet.
3-9 SECTION 3. Subchapter H, Chapter 151, Tax Code, is amended
3-10 by adding Section 151.325 to read as follows:
3-11 Sec. 151.325. CLOTHING FOR CHILDREN PRIOR TO START OF
3-12 SCHOOL. (a) The sale during August of an article of clothing or
3-13 footwear designed to be worn on or about the body of a person
3-14 younger than 13 years of age is exempted from the taxes imposed by
3-15 this chapter if the sales price of the article is less than $500.
3-16 (b) This section does not apply to:
3-17 (1) any special clothing or footwear primarily
3-18 designed for athletic activity or protective use and which is not
3-19 normally worn except when used for the athletic activity or
3-20 protective use for which it is designed; and
3-21 (2) accessories, including jewelry, handbags, luggage,
3-22 umbrellas, wallets, watches, and similar items carried on or about
3-23 the human body, without regard to whether worn on the body in a
3-24 manner characteristic of clothing.
3-25 SECTION 4. (a) This Act takes effect on the first day of
3-26 the first calendar quarter beginning on or after the date that it
3-27 may take effect under Section 39, Article III, Texas Constitution.
4-1 (b) The change in law made by this Act does not affect taxes
4-2 imposed before the effective date of this Act, and the law in
4-3 effect before the effective date of this Act is continued in effect
4-4 for purposes of the liability for and collection of those taxes.
4-5 SECTION 5. The importance of this legislation and the
4-6 crowded condition of the calendars in both houses create an
4-7 emergency and an imperative public necessity that the
4-8 constitutional rule requiring bills to be read on three several
4-9 days in each house be suspended, and this rule is hereby suspended,
4-10 and that this Act take effect and be in force according to its
4-11 terms, and it is so enacted.