79R9177 KLA-F

By:  Veasey                                                       H.B. No. 2789



A BILL TO BE ENTITLED

AN ACT

relating to sales tax refunds for certain purchases made by certain 
grandparents.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter I, Chapter 151, Tax Code, is amended 
by adding Section 151.433 to read as follows:
	Sec. 151.433.  TAX REFUNDS FOR CERTAIN GRANDPARENTS.  (a)  In 
this section, "child" means a person who is under 18 years of age.
	(b)  A person is eligible for a refund of the taxes imposed by 
this chapter on a purchase of a taxable item if:
		(1)  the person:                                                       
			(A)  is the grandparent of a child who lives at the 
person's residence;
			(B)  is the primary caretaker of  the child;  and                     
			(C)  has a family income that is at or below 200 
percent of the federal poverty level;  and
		(2)  the taxable item is purchased primarily for use by 
or for the benefit of the child with respect to whom the person who 
made the purchase is the primary caretaker.
	(c)  To receive a refund under this section, a person must 
apply to the comptroller for the refund.
	(d)  The comptroller shall adopt rules for determining 
whether a purchase of a taxable item qualifies under Subsection 
(b)(2) for a refund of the taxes imposed on the purchase.
	SECTION 2.  Section 111.104, Tax Code, is amended by 
amending Subsection (b) and adding Subsection (b-1) to read as 
follows:
	(b)  Except as provided by Subsection (b-1), a [A] tax refund 
claim may be filed with the comptroller only by the person who 
directly paid the tax to this state or by the person's attorney, 
assignee, or other successor.
	(b-1)  A tax refund claim authorized by Section 151.433 for 
sales tax collected on an item or service may be filed with the 
comptroller only by the purchaser of the item or service or the 
purchaser's attorney, third-party agent, assignee, or other 
successor.
	SECTION 3.  The change in law made by this Act applies only 
to sales tax paid by a purchaser on or after the effective date of 
this Act.  Sales tax paid by a purchaser before the effective date 
of this Act is governed by the law in effect on the date the sales 
tax was paid, and the former law is continued in effect for that 
purpose.
	SECTION 4.  This Act takes effect September 1, 2005.