By Dutton H.B. No. 860
77R2127 DAK-D
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. Section 151.326(a), Tax Code, is amended to read
1-5 as follows:
1-6 (a) The sale of an article of clothing or footwear designed
1-7 to be worn on or about the human body is exempted from the taxes
1-8 imposed by this chapter if:
1-9 (1) the sales price of the article is less than $100;
1-10 and
1-11 (2) the sale takes place during a period beginning at
1-12 12:01 a.m. on the first Saturday in August and ending at 11:59 p.m.
1-13 on the second Friday after the first Saturday in August [Friday in
1-14 August and ending at 12 midnight on the following Sunday].
1-15 SECTION 2. Subchapter H, Chapter 151, Tax Code, is amended
1-16 by adding Section 151.327 to read as follows:
1-17 Sec. 151.327. SCHOOL SUPPLIES, TEXTBOOKS, BOOKS, AND OTHER
1-18 INSTRUCTIONAL MATERIALS BEFORE START OF SCHOOL. (a) The sale or
1-19 storage, use, or other consumption of a school supply is exempted
1-20 from the taxes imposed by this chapter if the school supply is
1-21 purchased:
1-22 (1) for use by a student in a class in a public or
1-23 private elementary or secondary school, including textbooks, books,
1-24 and other instructional materials;
2-1 (2) during August; and
2-2 (3) for a sales price of less than $100 per item.
2-3 (b) For purposes of this exemption, "school supply" means:
2-4 (1) crayons;
2-5 (2) scissors;
2-6 (3) glue, paste, and glue sticks;
2-7 (4) pencils;
2-8 (5) pens;
2-9 (6) erasers;
2-10 (7) rulers;
2-11 (8) markers;
2-12 (9) highlighters;
2-13 (10) paper, including loose-leaf ruled notebook paper,
2-14 copy paper, graph paper, tracing paper, manila paper, colored
2-15 paper, poster board, and construction paper;
2-16 (11) writing tablets;
2-17 (12) spiral notebooks;
2-18 (13) bound composition notebooks;
2-19 (14) pocket folders;
2-20 (15) plastic folders;
2-21 (16) expandable portfolios;
2-22 (17) manila folders;
2-23 (18) three-ring binders that are three inches or less
2-24 in capacity;
2-25 (19) backpacks and zipper pencil bags;
2-26 (20) school supply boxes;
2-27 (21) clipboards;
3-1 (22) index cards;
3-2 (23) index card boxes;
3-3 (24) calculators;
3-4 (25) protractors;
3-5 (26) compasses;
3-6 (27) music notebooks;
3-7 (28) sketch or drawing pads;
3-8 (29) paintbrushes;
3-9 (30) watercolors;
3-10 (31) acrylic, tempera, or oil paints;
3-11 (32) tape, including masking tape and Scotch tape;
3-12 (33) clay and glazes;
3-13 (34) pencil sharpeners;
3-14 (35) thesauruses; and
3-15 (36) dictionaries.
3-16 (c) A retailer is not required to obtain an exemption
3-17 certificate stating that the school supplies are purchased for use
3-18 by a student in a class in a public or private elementary or
3-19 secondary school unless the supplies are purchased in a quantity
3-20 that indicates that the supplies are not purchased for use by a
3-21 student in a class in a public or private elementary or secondary
3-22 school.
3-23 (d) The governing body of a local taxing authority may
3-24 repeal the exemption under this section in the manner provided by
3-25 Chapter 326.
3-26 SECTION 3. (a) This Act takes effect July 1, 2001, if it
3-27 receives a vote of two-thirds of all the members elected to each
4-1 house, as provided by Section 39, Article III, Texas Constitution.
4-2 If this Act does not receive the vote necessary for effect on that
4-3 date, this Act takes effect October 1, 2001.
4-4 (b) The change in law made by this Act does not affect taxes
4-5 imposed before the effective date of this Act, and the law in
4-6 effect before the effective date of this Act is continued in effect
4-7 for purposes of the liability for and collection of those taxes.