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.