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A BILL TO BE ENTITLED
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AN ACT
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relating to exempting books purchased, used, or consumed by certain |
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university and college students from the sales and use tax for |
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limited periods. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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by adding Section 151.3212 to read as follows: |
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Sec. 151.3212. BOOKS PURCHASED, USED, OR CONSUMED BY |
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CERTAIN UNIVERSITY AND COLLEGE STUDENTS FOR LIMITED PERIODS. (a) |
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The sale, use, or consumption of a book is exempted from the taxes |
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imposed by this chapter if the book is: |
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(1) purchased by a full-time or part-time student who: |
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(A) is eligible under Subchapter M or P, Chapter |
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56, Education Code, to receive a grant authorized by those |
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subchapters, regardless of whether the student actually receives |
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the grant; and |
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(B) is enrolled at an institution of higher |
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education as defined by Section 61.003, Education Code, or a |
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private or independent college or university that is located in |
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this state and that is accredited by a recognized accrediting |
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agency as defined by Section 61.003, Education Code; and |
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(2) the purchase takes place during a period: |
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(A) beginning at 12:01 a.m. on the first Monday |
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following the first Saturday in August and ending at 11:59 p.m. on |
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the second following Wednesday; or |
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(B) beginning at 12:01 a.m. on the first Monday |
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following the first Saturday in January and ending at 11:59 p.m. on |
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the second following Wednesday. |
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(b) Not later than the 10th day before the first day of each |
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period described by Subsection (a)(2), each institution, college, |
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and university described by Subsection (a)(1)(B) shall create for |
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and electronically distribute to each person described by |
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Subsection (a)(1) that is enrolled at the institution, college, or |
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university the following to be used by the person to establish that |
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the person is qualified to receive the exemption authorized by this |
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section: |
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(1) a unique temporary student sales tax exemption |
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certificate on a form prescribed by the comptroller that the person |
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may use when making an in-person purchase; and |
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(2) a unique electronic credential that the person may |
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use when making an online purchase. |
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(c) A certificate or credential distributed under |
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Subsection (b) is valid only for purchases made during the period |
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described by Subsection (a)(2)(A) or (B) that immediately follows |
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the distribution date of the certificate or credential. |
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(d) The comptroller may adopt rules necessary for the |
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implementation, administration, and enforcement of this section. |
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SECTION 2. As soon as practicable, but not later than |
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November 1, 2017, the comptroller of public accounts shall develop |
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the temporary student sales tax exemption certificate form required |
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by Section 151.3212(b)(1), Tax Code, as added by this Act. |
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SECTION 3. The change in law made by this Act does not |
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affect taxes imposed before the effective date of this Act, and the |
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law in effect before the effective date of this Act is continued in |
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effect for purposes of the liability for and collection of those |
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taxes. |
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SECTION 4. This Act takes effect September 1, 2017. |