Floor Packet Page No. 422                                                   



	

Amend CSHB 3 as follows:                                                     

	(1)  Strike page 30, line 14, through page 31, line 1, and 

substitute the following:

		(5)  the repair, remodeling, maintenance, and 

restoration of tangible personal property, including motor vehicle 

repair services [except:

			[(A)  aircraft;                                             

			[(B)  a ship, boat, or other vessel, other than:            

				[(i)  a taxable boat or motor as defined by 

Section 160.001;

				[(ii)  a sports fishing boat;  or                          

				[(iii)  any other vessel used for pleasure;                

			[(C)  the repair, maintenance, and restoration of 

a motor vehicle; and

			[(D)  the repair, maintenance, creation, and 

restoration of a computer program, including its development and 

modification, not sold by the person performing the repair, 

maintenance, creation, or restoration service];

	(2)  On page 31, line 20, strike "7.25 [6 1/4] percent" and 

substitute "_____ [6 1/4] percent".

	(3)  Add the following appropriately numbered SECTIONS to 

PART A, ARTICLE 3, of the bill and renumber subsequent SECTIONS of 

that PART accordingly:

	SECTION 3A.__.  Subchapter H, Chapter 151, Tax Code, is 

amended by adding Section 151.327 to read as follows:

	Sec. 151.327.  SCHOOL SUPPLIES.  (a)  The sale or storage, 

use, or other consumption of a school supply is exempted from the 

taxes imposed by this chapter if the school supply is purchased for 

use by a student in a class in a public or private elementary or 

secondary school.

	(b)  For purposes of this exemption, "school supply" means:             

		(1)  crayons;                                                          

		(2)  scissors;                                                         

		(3)  glue, paste, and glue sticks;                                     

		(4)  pencils;                                                          

		(5)  pens;                                                             

		(6)  erasers;                                                          

		(7)  rulers;                                                           

		(8)  markers;                                                          

		(9)  highlighters;                                                     

		(10)  paper, including loose-leaf ruled notebook 

paper, copy paper, graph paper, tracing paper, manila paper, 

colored paper, poster board, and construction paper;

		(11)  writing tablets;                                                 

		(12)  spiral notebooks;                                                

		(13)  bound composition notebooks;                                     

		(14)  pocket folders;                                                  

		(15)  plastic folders;                                                 

		(16)  expandable portfolios;                                           

		(17)  manila folders;                                                  

		(18)  three-ring binders that are three inches or less 

in capacity;  

		(19)  backpacks and zipper pencil bags;                                

		(20)  school supply boxes;                                             

		(21)  clipboards;                                                      

		(22)  index cards;                                                     

		(23)  index card boxes;                                                

		(24)  calculators;                                                     

		(25)  protractors;                                                     

		(26)  compasses;                                                       

		(27)  music notebooks;                                                 

		(28)  sketch or drawing pads;                                          

		(29)  paintbrushes;                                                    

		(30)  watercolors;                                                     

		(31)  acrylic, tempera, or oil paints;                                 

		(32)  tape, including masking tape and Scotch tape;                    

		(33)  clay and glazes;                                                 

		(34)  pencil sharpeners;                                               

		(35)  thesauruses; and                                                 

		(36)  dictionaries.                                                    

	(c)  A retailer is not required to obtain an exemption 

certificate stating that the school supplies are purchased for use 

by a student in a class in a public or private elementary or 

secondary school unless the supplies are purchased in a quantity 

that indicates that the supplies are not purchased for use by a 

student in a class in a public or private elementary or secondary 

school.

	SECTION 3A.__.  The change in law made by this part does not 

affect taxes imposed before the effective date of this part, and the 

law in effect before the effective date of this part is continued in 

effect for purposes of the liability for and collection of those 

taxes.

	(4)  On page 34, line 19, strike "Section 151.423, Tax Code, 

is" and substitute "Sections 151.328 and 151.423, Tax Code, are".