By Oliveira H.B. No. 3274
77R7405 DAK-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting certain paper and paper holders from the
1-3 sales 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 151.3262 to read as follows:
1-7 Sec. 151.3262. PAPER AND PAPER HOLDERS 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) paper, including loose-leaf ruled notebook
1-14 paper, graph paper, colored paper, posterboard, and construction
1-15 paper;
1-16 (B) a writing tablet;
1-17 (C) a notebook, including a bound composition
1-18 notebook and a spiral notebook;
1-19 (D) a sketch or drawing pad;
1-20 (E) a music notebook;
1-21 (F) index cards and an index card box;
1-22 (G) a pocket folder;
1-23 (H) a plastic folder;
1-24 (I) an expandable portfolio;
2-1 (J) a manila folder; and
2-2 (K) a clipboard.
2-3 SECTION 2. (a) This Act takes effect July 1, 2001, if it
2-4 receives a vote of two-thirds of all the members elected to each
2-5 house, as provided by Section 39, Article III, Texas Constitution.
2-6 If this Act does not receive the vote necessary for effect on that
2-7 date, this Act takes effect October 1, 2001.
2-8 (b) The change in law made by this Act does not affect taxes
2-9 imposed before the effective date of this Act, and the law in
2-10 effect before the effective date of this Act is continued in effect
2-11 for purposes of the liability for and collection of those taxes.