By Shapleigh                                           S.B. No. 818
         76R5960 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a sales tax exemption for clothing bought in August.
 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.  CERTAIN PRICED CLOTHING OR FOOTWEAR; FABRICS.
 1-7     (a)  The sale of an article of clothing or footwear intended to be
 1-8     worn on or about the human body is exempted from taxes imposed by
 1-9     this chapter if:
1-10                 (1)  the sales price of the article is less than $50;
1-11     and
1-12                 (2)  the article is purchased during a period beginning
1-13     at 12:01 a.m.  August 1 and ending at midnight August 7.
1-14           (b)  Subsection (a) does not apply to:
1-15                 (1)  an article of clothing or footwear primarily
1-16     designed for athletic activity or protective use and that is not
1-17     normally worn except when used for the athletic activity or
1-18     protective use for which it is designed; and
1-19                 (2)  accessories, including jewelry, handbags, luggage,
1-20     umbrellas, wallets, watches, and similar items carried on or about
1-21     the human body, without regard to whether worn on the body in a
1-22     manner characteristic of clothing.
1-23           (c)  The sale of tangible personal property intended to be a
1-24     component part of an article of clothing or footwear for the human
 2-1     body, including fabric, thread, knitting yarn, buttons, and
 2-2     zippers, is exempted from the taxes imposed by this chapter if:
 2-3                 (1)  the sales price of the property is less than $50;
 2-4                 (2)  the property is purchased by a person who is not
 2-5     in the business of fabricating or manufacturing clothing or
 2-6     footwear for sale; and
 2-7                 (3)  the property is purchased during a period
 2-8     beginning at 12:01 a.m.  August 1 and ending at midnight August 7.
 2-9           SECTION 2.  (a)  This Act takes effect on the first day of
2-10     the first calendar quarter beginning on or after the date that it
2-11     may take effect under Section 39, Article III, Texas Constitution.
2-12           (b)  The change in law made by this Act does not affect taxes
2-13     imposed before the effective date of this Act, and the law in
2-14     effect before the effective date of this Act is continued in effect
2-15     for purposes of the liability for and collection of those taxes.
2-16           SECTION 3.  The importance of this legislation and the
2-17     crowded condition of the calendars in both houses create an
2-18     emergency and an imperative public necessity that the
2-19     constitutional rule requiring bills to be read on three several
2-20     days in each house be suspended, and this rule is hereby suspended,
2-21     and that this Act take effect and be in force according to its
2-22     terms, and it is so enacted.