By Williams H.B. No. 3262
77R7203 SMJ-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the application of the sales tax to certain food served
1-3 to students at institutions of higher education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.314(d), Tax Code, is amended to read
1-6 as follows:
1-7 (d) Food products, meals, soft drinks, and candy for human
1-8 consumption are exempted from the taxes imposed by this chapter if:
1-9 (1) served by a public or private school, school
1-10 district, student organization, or parent-teacher association under
1-11 an agreement with the proper school authorities in an elementary or
1-12 secondary school during the regular school day or by a
1-13 parent-teacher association during a fund-raising sale the proceeds
1-14 of which do not benefit an individual;
1-15 (2) sold by a church or at a function of a church;
1-16 (3) served to a patient or inmate of a hospital or
1-17 other institution licensed by the state for the care of humans;
1-18 [or]
1-19 (4) served to a permanent resident of a retirement
1-20 facility which provides permanent housing and residence to
1-21 individuals, a majority of whom are 60 years or older; or
1-22 (5) served to a student at an institution of higher
1-23 education or a private or independent institution of higher
1-24 education, as those terms are defined by Section 61.003, Education
2-1 Code, as part of a meal plan program provided by the institution.
2-2 SECTION 2. (a) This Act takes effect July 1, 2001, if it
2-3 receives a vote of two-thirds of all members elected to each house,
2-4 as provided by Section 39, Article III, Texas Constitution. If
2-5 this Act does not receive the vote necessary for effect on that
2-6 date, this Act takes effect October 1, 2001.
2-7 (b) The change in law made by this Act does not affect taxes
2-8 imposed before the effective date of this Act, and the law in
2-9 effect before the effective date of this Act is continued in effect
2-10 for the purposes of the liability for and collection of those
2-11 taxes.