1-1 By: Gallego (Senate Sponsor - Duncan) H.B. No. 82
1-2 (In the Senate - Received from the House March 19, 2001;
1-3 March 20, 2001, read first time and referred to Committee on
1-4 Finance; April 17, 2001, reported favorably by the following vote:
1-5 Yeas 9, Nays 0; April 17, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to an exemption from sales and use taxes for certain
1-9 taxable items sold by a qualified student organization affiliated
1-10 with an institution of higher education.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 151.321, Tax Code, is amended to read as
1-13 follows:
1-14 Sec. 151.321. UNIVERSITY AND COLLEGE STUDENT ORGANIZATIONS.
1-15 (a) A taxable item sold by a qualified student organization and
1-16 for which the sales price is $5,000 or less, is exempted from the
1-17 taxes imposed by Subchapter C, except that a taxable item
1-18 manufactured by or donated to the organization is exempt from the
1-19 taxes imposed by Subchapter C regardless of sales price unless sold
1-20 to the donor, if the student organization:
1-21 (1) sells the item at a sale that may last for one day
1-22 only and the primary purpose of which is to raise funds for the
1-23 organization; and
1-24 (2) holds not more than one sale described by
1-25 Subdivision (1) each month for which an exemption is claimed for an
1-26 item sold.
1-27 (b) In each calendar year, the first $5,000 of a qualified
1-28 student organization's total receipts from sales of taxable items
1-29 not otherwise exempt under Subsection (a) is exempt from the taxes
1-30 imposed by Subchapter C.
1-31 (c) A student organization qualifies for the exemptions
1-32 [exemption] under Subsections [Subsection] (a) and (b) if the
1-33 student organization:
1-34 (1) is affiliated with an institution of higher
1-35 education as defined by Section 61.003, Education Code, or a
1-36 private or independent college or university that is located in
1-37 this state and that is accredited by a recognized accrediting
1-38 agency under Section 61.003, Education Code;
1-39 (2) has as its primary purpose a purpose other than
1-40 engaging in business or performing an activity designed to make a
1-41 profit; and
1-42 (3) files a certification with the comptroller as
1-43 required by Subsection (d) [(c)].
1-44 (d) [(c)] A student organization must file with the
1-45 comptroller a certification issued by the institution, college, or
1-46 university described in Subsection (c)(1) [(b)(1)] showing that the
1-47 organization is affiliated with the institution, college, or
1-48 university.
1-49 (e) [(d)] The storage, use, or consumption of a taxable item
1-50 acquired tax-free under this section is exempted from the use tax
1-51 imposed by Subchapter D until the item is resold or subsequently
1-52 transferred.
1-53 SECTION 2. (a) This Act takes effect October 1, 2001.
1-54 (b) The change in law made by this Act does not affect taxes
1-55 imposed before the effective date of this Act, and the law in
1-56 effect before the effective date of this Act is continued in effect
1-57 for purposes of liability for and collection of those taxes.
1-58 (c) For purposes of application of Section 151.321(b), Tax
1-59 Code, as added by this Act, to the 2001 calendar year, the period
1-60 beginning October 1, 2001, and ending December 31, 2001, is treated
1-61 as a calendar year.
1-62 * * * * *