79R1244 DAK-D

By:  Davis of Dallas                                              H.B. No. 118



A BILL TO BE ENTITLED

AN ACT

relating to the repeal of certain tax exemptions and deductions.              
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  (a)  Except as otherwise provided by this 
section, the following provisions of the Tax Code are repealed:
		(1)  Subchapter B, Chapter 11;                                                
		(2)  Subchapter C, Chapter 11;                                                
		(3)  Subchapter H, Chapter 151;                                               
		(4)  Section 151.429;                                                         
		(5)  Section 151.4291;                                                        
		(6)  Section 151.431;                                                         
		(7)  Subchapter B, Chapter 171;                                               
		(8)  Subchapter J, Chapter 171;                                               
		(9)  Subchapter L, Chapter 171;                                               
		(10)  Subchapter M, Chapter 171;                                              
		(11)  Subchapter N, Chapter 171;                                              
		(12)  Subchapter O, Chapter 171;                                              
		(13)  Subchapter P, Chapter 171;                                              
		(14)  Subchapter Q, Chapter 171;                                              
		(15)  Subchapter R, Chapter 171;                                              
		(16)  Subchapter S, Chapter 171;                                              
		(17)  Subchapter T, Chapter 171;                                              
		(18)  Subchapter U, Chapter 171, as added by Chapter 
209, Acts of the 78th Legislature, Regular Session, 2003; and
		(19)  Subchapter U, Chapter 171, as added by Chapter 
1274, Acts of the 78th Legislature, Regular Session, 2003.
	(b)  The repeal of a tax exemption in Chapter 11, Tax Code, by 
Subsection (a) of this section is not effective if the constitution 
of this state directly provides the exemption.  If the constitution 
of this state authorizes but does not directly provide the 
exemption, the repeal of the exemption by this Act is effective.
	(c)  The repeal of a tax exemption in Chapter 151, Tax Code, 
by Subsection (a) of this section is not effective if this state is 
unable to tax the item or service under the United States 
Constitution.
	SECTION 2.  (a)  The change in law made by this Act to Chapter 
171, Tax Code, applies only to a report originally due on or after 
the effective date of this Act.
	(b)  This Act does not affect taxes imposed before the 
effective date of this Act, and the law in effect before the 
effective date of this Act is continued in effect for purposes of 
the liability for and collection of those taxes.
	SECTION 3.  This Act takes effect July 1, 2005, 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 October 1, 2005.