By Carona                                              S.B. No. 921
         77R8229 SMJ-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the application of the sales tax to pallets used for
 1-3     certain purposes.
 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 151.327 to read as follows:
 1-7           Sec. 151.327.  PALLETS RENTED OR LEASED FOR CERTAIN PURPOSES.
 1-8     A pallet is exempted from the taxes imposed by this chapter if it
 1-9     is rented or leased for use in manufacturing, as that term is
1-10     defined by Section 151.318, in processing or packing food, or in
1-11     farming.
1-12           SECTION 2. (a)  This Act takes effect July 1, 2001, if it
1-13     receives a vote of two-thirds of all members elected to each house,
1-14     as provided by Section 39, Article III, Texas Constitution.  If
1-15     this Act does not receive the vote necessary for effect on that
1-16     date, this Act takes effect October 1, 2001.
1-17           (b)  The change in law made by this Act does not affect taxes
1-18     imposed before the effective date of this Act, and the law in
1-19     effect before the effective date of this Act is continued in effect
1-20     for the purposes of the liability for and collection of those
1-21     taxes.