By Ellis, et al.                                       H.B. No. 244
         77R934 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting certain emergency service organizations from
 1-3     the sales and use tax on boats and boat motors.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter B, Chapter 160, Tax Code, is amended by
 1-6     adding Section 160.0245 to read as follows:
 1-7           Sec. 160.0245.  EXEMPTION FOR EMERGENCY SERVICE
 1-8     ORGANIZATIONS. The taxes imposed by this chapter do not apply to
 1-9     the sale of a taxable boat or motor to or to the use of a taxable
1-10     boat or motor by a volunteer fire department or other department,
1-11     company, or association organized for the purpose of answering fire
1-12     alarms and extinguishing fires or for the purpose of answering fire
1-13     alarms, extinguishing fires, and providing emergency medical
1-14     services, the members of which receive no compensation or only
1-15     nominal compensation for their services rendered, if the boat or
1-16     motor is used exclusively by the department, company, or
1-17     association.
1-18           SECTION 2. (a)  This Act takes effect immediately if it
1-19     receives a vote of two-thirds of all the members elected to each
1-20     house, as provided by Section 39, Article III, Texas Constitution.
1-21     If this Act does not receive the vote necessary for immediate
1-22     effect, this Act takes effect September 1, 2001.
1-23           (b)  The change in law made by this Act does not affect taxes
1-24     imposed before the effective date of this Act, and the law in
 2-1     effect before the effective date of this Act is continued in effect
 2-2     for purposes of the liability for and collection of those taxes.