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A BILL TO BE ENTITLED
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AN ACT
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relating to imposition of local sales and use taxes on items shipped |
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or delivered from one transit authority to another transit |
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authority by certain retailers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 322.107, Tax Code, is amended to read as |
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follows: |
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Sec. 322.107. EXEMPTION: SALES TAX ON ITEMS LEAVING |
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ENTITY. (a) There are exempted from the sales tax of a taxing |
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entity the receipts of the sale of a taxable item that, under a |
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sales contract, is shipped to a point outside the entity by means |
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of: |
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(1) facilities operated by the retailer; |
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(2) delivery by the retailer to a carrier for shipment |
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to a consignee at that point; or |
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(3) delivery by the retailer to a forwarding agent for |
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shipment outside the entity. |
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(b) This section does not apply to tangible personal |
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property that is: |
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(1) sold by a retailer: |
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(A) whose only place of business in this state is |
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located in a taxing entity; and |
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(B) whose total receipts subject to taxation |
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under Chapter 151 during the preceding fiscal year were less than |
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$10,000; and |
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(2) shipped or delivered directly to a purchaser in |
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another taxing entity. |
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SECTION 2. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 3. This Act takes effect September 1, 2007. |