1-1 By: Ellis, et al. S.B. No. 441
1-2 (In the Senate - Filed February 9, 1999; February 10, 1999,
1-3 read first time and referred to Committee on Finance;
1-4 April 6, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 11, Nays 0; April 6, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 441 By: Moncrief
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to exemptions from the sales tax.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (a), Section 151.313, Tax Code, is
1-13 amended to read as follows:
1-14 (a) The following items are exempted from the taxes imposed
1-15 by this chapter:
1-16 (1) a drug or medicine, other than insulin, if
1-17 prescribed or dispensed for a human or animal by a licensed
1-18 practitioner of the healing arts;
1-19 (2) insulin;
1-20 (3) a drug or medicine, without regard to whether it
1-21 is prescribed or dispensed by a licensed practitioner of the
1-22 healing arts, that is:
1-23 (A) labeled with a national drug code issued by
1-24 the federal Food and Drug Administration; and
1-25 (B) specifically formulated and labeled for
1-26 children 12 years of age or younger;
1-27 (4) a diaper;
1-28 (5) a hypodermic syringe or needle;
1-29 (6) [(4)] a brace; hearing aid or audio loop;
1-30 orthopedic, dental, or prosthetic device; ileostomy, colostomy, or
1-31 ileal bladder appliance; or supplies or replacement parts for the
1-32 listed items;
1-33 (7) [(5)] a therapeutic appliance, device, and any
1-34 related supplies specifically designed for those products, if
1-35 dispensed or prescribed by a licensed practitioner of the healing
1-36 arts, when those items are purchased and used by an individual for
1-37 whom the items listed in this subdivision were dispensed or
1-38 prescribed;
1-39 (8) [(6)] corrective lens and necessary and related
1-40 supplies, if dispensed or prescribed by an ophthalmologist or
1-41 optometrist;
1-42 (9) [(7)] specialized printing or signalling equipment
1-43 used by the deaf for the purpose of enabling the deaf to
1-44 communicate through the use of an ordinary telephone and all
1-45 materials, paper, and printing ribbons used in that equipment;
1-46 (10) [(8)] a braille wristwatch, braille writer,
1-47 braille paper and braille electronic equipment that connects to
1-48 computer equipment, and the necessary adaptive devices and adaptive
1-49 computer software;
1-50 (11) [(9)] each of the following items if purchased
1-51 for use by the blind to enable them to function more independently:
1-52 a slate and stylus, print enlarger, light probe, magnifier, white
1-53 cane, talking clock, large print terminal, talking terminal, or
1-54 harness for guide dog; and
1-55 (12) [(10)] hospital beds.
1-56 SECTION 2. Subchapter H, Chapter 151, Tax Code, is amended
1-57 by adding Section 151.325 to read as follows:
1-58 Sec. 151.325. CLOTHING AND FOOTWEAR FOR LIMITED PERIOD.
1-59 (a) The sale of an article of clothing or footwear designed to be
1-60 worn on or about the human body is exempted from the taxes imposed
1-61 by this chapter if:
1-62 (1) the sales price of the article is less than $200;
1-63 and
1-64 (2) the sale takes place during a period beginning at
2-1 12:01 a.m. on the first Saturday in August and ending at 12
2-2 midnight on the second Friday after the first Saturday in August.
2-3 (b) This section does not apply to:
2-4 (1) any special clothing or footwear that is primarily
2-5 designed for athletic activity or protective use and that is not
2-6 normally worn except when used for the athletic activity or
2-7 protective use for which it is designed; and
2-8 (2) accessories, including jewelry, handbags, luggage,
2-9 umbrellas, wallets, watches, and similar items carried on or about
2-10 the human body, without regard to whether worn on the body in a
2-11 manner characteristic of clothing.
2-12 SECTION 3. (a) This Act takes effect October 1, 1999.
2-13 (b) The change in law made by this Act does not affect taxes
2-14 imposed before the effective date of this Act, and the law in
2-15 effect before the effective date of this Act is continued in effect
2-16 for purposes of the liability for and collection of those taxes.
2-17 SECTION 4. The importance of this legislation and the
2-18 crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended.
2-22 * * * * *