By Gallego H.B. No. 82
77R177 KEL-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an exemption from sales and use taxes for certain
1-3 taxable items sold by a qualified student organization affiliated
1-4 with an institution of higher education.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 151.321, Tax Code, is amended to read as
1-7 follows:
1-8 Sec. 151.321. UNIVERSITY AND COLLEGE STUDENT ORGANIZATIONS.
1-9 (a) A taxable item sold by a qualified student organization and
1-10 for which the sales price is $5,000 or less, is exempted from the
1-11 taxes imposed by Subchapter C, except that a taxable item
1-12 manufactured by or donated to the organization is exempt from the
1-13 taxes imposed by Subchapter C regardless of sales price unless sold
1-14 to the donor, if the student organization:
1-15 (1) sells the item at a sale that may last for one day
1-16 only and the primary purpose of which is to raise funds for the
1-17 organization; and
1-18 (2) holds not more than one sale described by
1-19 Subdivision (1) each month for which an exemption is claimed for an
1-20 item sold.
1-21 (b) In each calendar year, the first $5,000 of a qualified
1-22 student organization's total receipts from sales of taxable items
1-23 not otherwise exempt under Subsection (a) is exempt from the taxes
1-24 imposed by Subchapter C.
2-1 (c) A student organization qualifies for the exemptions
2-2 [exemption] under Subsections [Subsection] (a) and (b) if the
2-3 student organization:
2-4 (1) is affiliated with an institution of higher
2-5 education as defined by Section 61.003, Education Code, or a
2-6 private or independent college or university that is located in
2-7 this state and that is accredited by a recognized accrediting
2-8 agency under Section 61.003, Education Code;
2-9 (2) has as its primary purpose a purpose other than
2-10 engaging in business or performing an activity designed to make a
2-11 profit; and
2-12 (3) files a certification with the comptroller as
2-13 required by Subsection (d) [(c)].
2-14 (d) [(c)] A student organization must file with the
2-15 comptroller a certification issued by the institution, college, or
2-16 university described in Subsection (c)(1) [(b)(1)] showing that the
2-17 organization is affiliated with the institution, college, or
2-18 university.
2-19 (e) [(d)] The storage, use, or consumption of a taxable item
2-20 acquired tax-free under this section is exempted from the use tax
2-21 imposed by Subchapter D until the item is resold or subsequently
2-22 transferred.
2-23 SECTION 2. (a) This Act takes effect October 1, 2001.
2-24 (b) The change in law made by this Act does not affect taxes
2-25 imposed before the effective date of this Act, and the law in
2-26 effect before the effective date of this Act is continued in effect
2-27 for purposes of liability for and collection of those taxes.
3-1 (c) For purposes of application of Section 151.321(b), Tax
3-2 Code, as added by this Act, to the 2001 calendar year, the period
3-3 beginning October 1, 2001, and ending December 31, 2001, is treated
3-4 as a calendar year.