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A BILL TO BE ENTITLED
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AN ACT
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relating to taxable items for exempt entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Amend Section 151.311(b) of the Tax Code to read |
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as follows: |
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(b) The purchase of tangible personal property, other than |
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machinery or equipment and its accessories and repair and |
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replacement parts, for use in the performance of a contract for an |
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improvement to realty for an organization exempted under Section |
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151.309 or 151.310 of this code is exempt if the tangible personal |
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property is: |
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(1) necessary and essential for the performance of the |
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contract; and |
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(2) completely consumed at the job site. |
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SECTION 2. Amend Section 151.311 of the Tax Code by adding |
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new (e) to read as follows: |
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(e) For purposes of this section, machinery or equipment and |
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its accessories and repair and replacement parts used in the |
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performance of a contract with the Texas Department of |
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Transportation is exempt. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided in Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |