By Oliveira                                           H.B. No. 3277
         77R7396 DAK-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting certain arts and craft items 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
 1-6     by adding Section 151.3266 to read as follows:
 1-7           Sec. 151.3266.  CERTAIN ARTS AND CRAFT ITEMS FOR A LIMITED
 1-8     TIME.  A tangible item is exempt from the taxes imposed by this
 1-9     chapter if:
1-10                 (1)  the sale of the item takes place during the period
1-11     specified in Section 151.326(a);
1-12                 (2)  the sales price of the item is less than $5; and
1-13                 (3)  the item is:
1-14                       (A)  scissors;
1-15                       (B)  glue, including paste and a glue stick; or
1-16                       (C)  tape, including masking tape and scotch-type
1-17     tape.
1-18           SECTION 2.  (a)  This Act takes effect July 1, 2001, if it
1-19     receives a vote of two-thirds of all the members elected to each
1-20     house, as provided by Section 39, Article III, Texas Constitution.
1-21     If this Act does not receive the vote necessary for effect on that
1-22     date, this Act takes effect October 1, 2001.
1-23           (b)  The change in law made by this Act does not affect taxes
1-24     imposed before the effective date of this Act, and the law in
 2-1     effect before the effective date of this Act is continued in effect
 2-2     for purposes of the liability for and collection of those taxes.