78R1749 CBH-D

By:  Smith of Tarrant                                             H.B. No. 225



A BILL TO BE ENTITLED

AN ACT

relating to an exemption from the sales and use tax for food sold 
during certain athletic events.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 151.314(d), Tax Code, is amended to read 
as follows:     
	(d)  Food products, meals, soft drinks, and candy for human 
consumption are exempted from the taxes imposed by this chapter if:
		(1)  served by a public or private school, school 
district, student organization, or parent-teacher association 
under an agreement with the proper school authorities in an 
elementary or secondary school during the regular school day or by a 
parent-teacher association during a fund-raising sale the proceeds 
of which do not benefit an individual;
		(2)  sold by a church or at a function of a church;                           
		(3)  served to a patient or inmate of a hospital or 
other institution licensed by the state for the care of humans;  
[or]
		(4)  served to a permanent resident of a retirement 
facility which provides permanent housing and residence to 
individuals, a majority of whom are 60 years or older; or
		(5)  sold by a concession stand at an athletic event 
sponsored or sanctioned by a school district.
	SECTION 2.  (a)  This Act takes effect July 1, 2003, if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution.  
If this Act does not receive the vote necessary for effect on that 
date, this Act takes effect September 1, 2003.
	(b)  The change in law made by this Act does not affect taxes 
imposed before the effective date of this Act, and the former law is 
continued in effect for purposes of the liability for and 
collection of those taxes.