By Oliveira H.B. No. 57
77R710 MTB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting the purchase of certain school supplies,
1-3 school books, and other school materials from the sales tax.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended by
1-6 adding Section 151.327 to read as follows:
1-7 Sec. 151.327. SCHOOL SUPPLIES, TEXTBOOKS, BOOKS, AND OTHER
1-8 INSTRUCTIONAL MATERIALS IN AUGUST. (a) The sale or storage, use,
1-9 or other consumption of a school supply is exempted from the taxes
1-10 imposed by this chapter if the school supply is purchased:
1-11 (1) for use by a student in a class in a public or
1-12 private elementary or secondary school, including textbooks, books,
1-13 and other instructional materials;
1-14 (2) during August; and
1-15 (3) for a sales price of less than $75 per item.
1-16 (b) For purposes of this exemption, "school supply" means:
1-17 (1) crayons;
1-18 (2) scissors;
1-19 (3) glue, including paste and a glue stick;
1-20 (4) a pen;
1-21 (5) a pencil;
1-22 (6) an eraser;
1-23 (7) a ruler;
1-24 (8) a marker, including a highlighter;
2-1 (9) paper, including loose-leaf ruled notebook paper,
2-2 copy paper, graph paper, tracing paper, manila paper, colored
2-3 paper, and construction paper;
2-4 (10) a poster board;
2-5 (11) a writing tablet;
2-6 (12) a notebook, including a spiral notebook and a
2-7 bound composition notebook;
2-8 (13) a folder, including a pocket folder, a plastic
2-9 folder, and a manila folder;
2-10 (14) an expandable portfolio;
2-11 (15) a three-ring binder that is three inches or less
2-12 in capacity;
2-13 (16) a backpack;
2-14 (17) a zippered pencil bag;
2-15 (18) a school supply box;
2-16 (19) a clipboard;
2-17 (20) index cards, including index card boxes;
2-18 (21) a calculator;
2-19 (22) a protractor;
2-20 (23) a compass;
2-21 (24) a music notebook;
2-22 (25) a sketch or drawing pad;
2-23 (26) a paint brush;
2-24 (27) watercolors;
2-25 (28) acrylic, tempera, or oil paints;
2-26 (29) tape, including masking tape and Scotch tape;
2-27 (30) clay and glazes;
3-1 (31) a pencil sharpener;
3-2 (32) a thesaurus; and
3-3 (33) a dictionary.
3-4 (c) A retailer is not required to obtain an exemption
3-5 certificate stating that the school supplies are purchased for use
3-6 by a student in a class in a public or private elementary or
3-7 secondary school unless the supplies are purchased in a quantity
3-8 that indicates that the supplies are not purchased for use by a
3-9 student in a class in a public or private elementary or secondary
3-10 school.
3-11 SECTION 2. (a) Notwithstanding any other provision of this
3-12 Act, the governing body of a local taxing authority that imposes a
3-13 local sales and use tax may repeal an exemption to that tax
3-14 authorized by this Act if the governing body finds by an
3-15 appropriate order, including an ordinance, that the exemption would
3-16 materially impair the obligation of any contract existing at the
3-17 time this Act goes into effect and to which the local taxing
3-18 authority is a party.
3-19 (b) The secretary of the local taxing authority adopting an
3-20 order under this section shall send to the comptroller by certified
3-21 or registered mail a copy of the order.
3-22 (c) The repeal of the exemption takes effect on the first
3-23 day of the month following the expiration of the calendar quarter
3-24 occurring after the date on which the comptroller receives a copy
3-25 of the order.
3-26 SECTION 3. (a) This Act takes effect on the first day of
3-27 the first calendar quarter beginning on or after the date that it
4-1 may take effect under Section 39, Article III, Texas Constitution.
4-2 (b) The change in law made by this Act does not affect taxes
4-3 imposed before the effective date of this Act, and the law in
4-4 effect before the effective date of this Act is continued in effect
4-5 for purposes of the liability for and collection of those taxes.