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A BILL TO BE ENTITLED
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AN ACT
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relating to an automatic extension of the sales tax holiday on |
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clothing and footwear in certain fiscal years. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 151.326, Tax Code, is amended to read as |
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follows: |
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Sec. 151.326. CLOTHING AND FOOTWEAR FOR LIMITED |
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PERIOD. (a) Except as provided by Subsection (c), the [The] sale |
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of an article of clothing or footwear designed to be worn on or |
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about the human body is exempted from the taxes imposed by this |
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chapter if: |
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(1) the sales price of the article is less than $100; |
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and |
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(2) the sale takes place during a period beginning at |
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12:01 a.m. on the first Friday in August and ending at 12 midnight |
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on the following Sunday. |
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(b) This section does not apply to: |
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(1) any special clothing or footwear that is primarily |
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designed for athletic activity or protective use and that is not |
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normally worn except when used for the athletic activity or |
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protective use for which it is designed; |
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(2) accessories, including jewelry, handbags, |
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luggage, umbrellas, wallets, watches, and similar items carried on |
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or about the human body, without regard to whether worn on the body |
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in a manner characteristic of clothing; and |
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(3) the rental of clothing or footwear. |
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(c) The exemption period under Subsection (a)(2) is |
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automatically extended to August 31st for any fiscal year if, at |
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11:59 p.m. on the first Thursday in August, the revenue collected |
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from the tax imposed under this chapter equals or exceeds the |
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official revenue estimate for the revenue derived from the tax |
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imposed under this chapter for that fiscal year. The comptroller by |
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rule shall adopt procedures for implementing this subsection. |
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SECTION 2. This Act takes effect September 1, 2007. |