By Flores H.B. No. 375 77R2452 DAK-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to exemptions from the sales tax. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended 1-5 by adding Section 151.327 to read as follows: 1-6 Sec. 151.327. SCHOOL SUPPLIES, TEXTBOOKS, BOOKS, AND OTHER 1-7 INSTRUCTIONAL MATERIALS BEFORE START OF SCHOOL. (a) The sale or 1-8 storage, use, or other consumption of a school supply is exempted 1-9 from the taxes imposed by this chapter if: 1-10 (1) the item is purchased for use by a student in a 1-11 class in a public or private elementary or secondary school, 1-12 including textbooks, books, and other instructional materials; 1-13 (2) the sale takes place during a period beginning at 1-14 12:01 a.m. on the first Friday in August and ending at 11:59 p.m. 1-15 on the following Sunday; and 1-16 (3) the sales price of each item is less than $75. 1-17 (b) For purposes of this exemption, "school supply" means: 1-18 (1) crayons; 1-19 (2) scissors; 1-20 (3) glue, paste, and glue sticks; 1-21 (4) pencils; 1-22 (5) pens; 1-23 (6) erasers; 1-24 (7) rulers; 2-1 (8) markers; 2-2 (9) highlighters; 2-3 (10) paper, including loose-leaf ruled notebook paper, 2-4 copy paper, graph paper, tracing paper, manila paper, colored 2-5 paper, poster board, and construction paper; 2-6 (11) writing tablets; 2-7 (12) spiral notebooks; 2-8 (13) bound composition notebooks; 2-9 (14) pocket folders; 2-10 (15) plastic folders; 2-11 (16) expandable portfolios; 2-12 (17) manila folders; 2-13 (18) three-ring binders that are three inches or less 2-14 in capacity; 2-15 (19) backpacks and zipper pencil bags; 2-16 (20) school supply boxes; 2-17 (21) clipboards; 2-18 (22) index cards; 2-19 (23) index card boxes; 2-20 (24) calculators; 2-21 (25) protractors; 2-22 (26) compasses; 2-23 (27) music notebooks; 2-24 (28) sketch or drawing pads; 2-25 (29) paintbrushes; 2-26 (30) watercolors; 2-27 (31) acrylic, tempera, or oil paints; 3-1 (32) tape, including masking tape and Scotch tape; 3-2 (33) clay and glazes; 3-3 (34) pencil sharpeners; 3-4 (35) thesauruses; and 3-5 (36) dictionaries. 3-6 (c) A retailer is not required to obtain an exemption 3-7 certificate stating that the school supplies are purchased for use 3-8 by a student in a class in a public or private elementary or 3-9 secondary school unless the supplies are purchased in a quantity 3-10 that indicates that the supplies are not purchased for use by a 3-11 student in a class in a public or private elementary or secondary 3-12 school. 3-13 (d) The governing body of a local taxing authority may 3-14 repeal the exemption under this section in the manner provided by 3-15 Chapter 326. 3-16 SECTION 2. (a) This Act takes effect July 1, 2001, if it 3-17 receives a vote of two-thirds of all the members elected to each 3-18 house, as provided by Section 39, Article III, Texas Constitution. 3-19 If this Act does not receive the vote necessary for effect on that 3-20 date, this Act takes effect October 1, 2001. 3-21 (b) The change in law made by this Act does not affect taxes 3-22 imposed before the effective date of this Act, and the law in 3-23 effect before the effective date of this Act is continued in effect 3-24 for purposes of the liability for and collection of those taxes.