By Gallego H.B. No. 256
77R141 SMJ-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the application of the sales tax to certain material
1-3 used to restore a damaged residence in a disaster area.
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 151.3503 to read as follows:
1-7 Sec. 151.3503. BUILDING MATERIAL USED TO RESTORE CERTAIN
1-8 PROPERTY. (a) In this section:
1-9 (1) "Building material" means material used to restore
1-10 a residence homestead, including:
1-11 (A) soil, dirt, rock, sand, and other natural or
1-12 man-made inert solid materials used to fill land;
1-13 (B) lumber;
1-14 (C) brick;
1-15 (D) stone;
1-16 (E) paint;
1-17 (F) window glass;
1-18 (G) plumbing supplies;
1-19 (H) electrical supplies;
1-20 (I) cleaning supplies; and
1-21 (J) other similar materials.
1-22 (2) "Disaster area" means:
1-23 (A) an area declared a disaster area by the
1-24 governor under Chapter 418, Government Code; or
2-1 (B) an area declared a disaster area by the
2-2 president of the United States under the Robert T. Stafford
2-3 Disaster Relief and Emergency Assistance Act (42 U.S.C. Section
2-4 5121 et seq.).
2-5 (3) "Residence homestead" has the meaning assigned by
2-6 Section 11.13.
2-7 (4) "Restore" means repair, restore, remodel, clean,
2-8 or modify an improvement to a residence homestead.
2-9 (b) Building material used to restore a residence homestead
2-10 and incorporated into the homestead is exempt from the taxes
2-11 imposed by this chapter if:
2-12 (1) the amount of the charge for the building material
2-13 is separately itemized;
2-14 (2) the restoration is performed on a residence
2-15 homestead:
2-16 (A) damaged within a disaster area by the
2-17 condition that caused the area to be declared a disaster area; and
2-18 (B) within 18 months after the date the area is
2-19 declared a disaster area; and
2-20 (3) the damage is not covered by a residential
2-21 property insurance policy.
2-22 SECTION 2. (a) This Act takes effect July 1, 2001, if it
2-23 receives a vote of two-thirds of all members elected to each house,
2-24 as provided by Section 39, Article III, Texas Constitution. If
2-25 this Act does not receive the vote necessary for effect on that
2-26 date, this Act takes effect October 1, 2001.
2-27 (b) The change in law made by this Act does not affect taxes
3-1 imposed before the effective date of this Act, and the law in
3-2 effect before the effective date of this Act is continued in effect
3-3 for the purposes of the liability for and collection of those
3-4 taxes.