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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from the sales and use tax for certain |
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fund-raising sales conducted by a nonprofit organization that |
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operates to benefit the patients of a state mental hospital. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.310, Tax Code, is amended by adding |
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Subsection (c-1) and amending Subsection (d) to read as follows: |
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(c-1) Notwithstanding Subsection (c), an organization that |
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qualifies for an exemption under Subsection (a)(2) and that |
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operates to benefit the patients of the second state mental |
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hospital built in this state may hold a tax-free sale or auction |
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under this subsection once during each calendar month and each |
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tax-free sale or auction may continue for one day only. The sale of |
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a taxable item the sales price of which is $5,000 or less by a |
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qualified organization at a tax-free sale or auction is exempted |
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from the sales tax imposed by Subchapter C, except that a taxable |
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item manufactured by or donated to the qualified organization may |
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be sold tax free regardless of the sales price to any purchaser |
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other than the donor. The storage, use, or consumption of a taxable |
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item that is acquired from a qualified organization at a tax-free |
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sale or auction and that is exempted under this subsection from the |
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taxes imposed by Subchapter C is exempted from the use tax imposed |
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by Subchapter D until the item is resold or subsequently |
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transferred. |
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(d) If two or more organizations jointly hold a tax-free |
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sale or auction under Subsection (c), each organization may hold |
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one additional tax-free sale or auction during the calendar year in |
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which the joint sale or auction is held. The employment of and |
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payment of a reasonable fee to an auctioneer to conduct a tax-free |
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auction does not disqualify an otherwise qualified organization |
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from receiving the exemption provided by Subsection (c) or (c-1). |
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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 July 1, 2009, if it |
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receives a vote of two-thirds of all members elected to each house, |
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as provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for effect on that date, |
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this Act takes effect September 1, 2009. |