79R3984 CBH-D

By:  Hochberg                                                     H.B. No. 1342



A BILL TO BE ENTITLED

AN ACT

relating to the imposition of the sales and use tax on certain sales 
made by individuals.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 151.008, Tax Code, is amended by adding 
Subsection (c) to read as follows:
	(c)  An individual is not a "seller" or "retailer" for 
purposes of this section if:
		(1)  the individual is not engaged in the active 
conduct of a trade or business in this state for the purposes of 
affecting sales of taxable items; and
		(2)  the only sales made by the individual are sales of 
taxable personal property described by Section 151.304(b)(5).
	SECTION 2.  Section 151.304(b), Tax Code, is amended to read 
as follows:     
	(b)  In this section, "occasional sale" means:                                 
		(1)  one or two sales of taxable items, other than an 
amusement service, at retail during a 12-month period by a person 
who does not habitually engage, or hold himself out as engaging, in 
the business of selling taxable items at retail;
		(2)  the sale of the entire operating assets of a 
business or of a separate division, branch, or identifiable segment 
of a business;
		(3)  a transfer of all or substantially all the 
property used by a person in the course of an activity if after the 
transfer the real or ultimate ownership of the property is 
substantially similar to that which existed before the transfer;  
[or]
		(4)  the sale of not more than 10 admissions for 
amusement services during a 12-month period by a person who does not 
hold himself out as engaging, or does not habitually engage, in 
providing amusement services; or
		(5)  the sale of taxable personal property by an 
individual if:      
			(A)  the property was originally bought by the 
individual or a member of the individual's family for the personal 
use of the individual or the individual's family;
			(B)  the individual does not hold a permit issued 
under this chapter and is not required to obtain a permit as a 
"seller" or "retailer" as those terms are defined by Section 
151.008;
			(C)  the individual does not employ an auctioneer, 
broker, or factor, other than an online auction, to sell the 
property; and
			(D)  the sale would otherwise not be considered an 
occasional sale under this section.
	SECTION 3.  The change in law made by this Act does not 
affect tax liability accruing before the effective date of this 
Act.  That liability continues in effect as if this Act had not been 
enacted, and the former law is continued in effect for the 
collection of taxes due and for civil and criminal enforcement of 
the liability for those taxes.
	SECTION 4.  This Act takes effect July 1, 2005, if it 
receives a vote of two-thirds of all 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, 2005.