By Oliveira                                           H.B. No. 3273
         77R7404 DAK-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting certain writing instruments from the sales
 1-3     and use tax for a limited time.
 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 151.3261 to read as follows:
 1-7           Sec. 151.3261.  WRITING INSTRUMENTS FOR A LIMITED TIME. A
 1-8     tangible item is exempt from the taxes imposed by this chapter if:
 1-9                 (1)  the sale of the item takes place during the period
1-10     specified in Section 151.326(a);
1-11                 (2)  the sales price of the item is less than $5; and
1-12                 (3)  the item is:
1-13                       (A)  crayons;
1-14                       (B)  a pencil, a pencil sharpener, an eraser, or
1-15     a zipper pencil bag;
1-16                       (C)  a pen, including a pen refill;
1-17                       (D)  a marker, including a highlighter; or
1-18                       (E)  a writing instrument supply box.
1-19           SECTION 2. (a)  This Act takes effect July 1, 2001, if it
1-20     receives a vote of two-thirds of all the members elected to each
1-21     house, as provided by Section 39, Article III, Texas Constitution.
1-22     If this Act does not receive the vote necessary for effect on that
1-23     date, this Act takes effect October 1, 2001.
1-24           (b)  The change in law made by this Act does not affect taxes
 2-1     imposed before the effective date of this Act, and the law in
 2-2     effect before the effective date of this Act is continued in effect
 2-3     for purposes of the liability for and collection of those taxes.