Amend CSSB 1863 (House committee printing) by adding a new
section numbered appropriately to read as follows:
SECTION __. Sections 151.3162 (d) and (e), Tax Code, are
amended to read as follows:
(d) the exemption provided by Subsection (b) takes effect
January 1, 2008. Until that date, a person is entitled to an
exemption [a credit or refund] of a portion of the taxes paid under
this chapter on an item that after January 1, 2008, will be exempted
from the taxes imposed by this chapter under Subsection (b). The
amount of the exemption [credit or refund] is determined as
follows:
(1) for an item for which the taxable event occurs on or
after October 1, 2001, and before January 1, 2004, the taxpayer is
entitled to an exemption [a refund or credit] in an amount equal to
33 percent of the tax paid on the item;
(2) for an item for which the taxable event occurs on or
after January 1, 2004, and before January 1, 2006, the taxpayer is
entitled to an exemption [a refund or credit] in an amount equal to
50 percent of the tax paid on the item; and
(3) for an item for which the taxable event occurs on or
after January 1, 2006, and before January 1, 2008, the taxpayer is
entitled to an exemption [a refund or credit] in an amount equal to
75 percent of the tax paid on the item.
(e) A taxpayer entitled to a credit or refund under
Subsection (d), as that subsection existed on September 30, 2005,
may elect to receive either a credit or a refund. A taxpayer who
elects to receive a credit must claim the credit on the return for a
period that ends not later than the first anniversary of the date on
which the taxable event occurred. A taxpayer who elects to receive
a refund must apply to the comptroller for the refund before or
during the calendar year following the year in which the tax on the
item was paid.