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A BILL TO BE ENTITLED
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AN ACT
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relating to exempting course materials purchased, used, or consumed |
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by certain students from the sales and use tax. |
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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 151.3213 to read as follows: |
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Sec. 151.3213. COURSE MATERIALS PURCHASED, USED, OR |
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CONSUMED BY UNIVERSITY AND COLLEGE STUDENTS. (a) In this section: |
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(1) "Course materials" means tangible personal |
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property required for a course at a university or college, |
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including textbooks, books, magazines, and other materials. |
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(2) "University or college" means: |
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(A) an institution of higher education as defined |
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by Section 61.003, Education Code; |
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(B) a private or independent college or |
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university that is located in this state and that is accredited by a |
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recognized accrediting agency as defined by Section 61.003, |
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Education Code; and |
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(C) a career school or college as defined by |
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Section 132.001, Education Code. |
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(b) The sale, use, or consumption of course materials is |
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exempted from the taxes imposed by this chapter if the course |
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materials are: |
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(1) purchased by a full-time or part-time student |
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enrolled at a university or college; and |
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(2) specifically required by the instructor of a |
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course in which the student is enrolled at the university or |
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college. |
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(c) The comptroller shall prescribe a course materials |
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sales tax exemption certificate to be used by a person to establish |
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that the person is qualified to receive the exemption authorized by |
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this section. In addition to any other requirement prescribed by |
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the comptroller, the certificate must require the person claiming |
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the exemption to: |
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(1) affirm that: |
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(A) the person is a full-time or part-time |
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student enrolled at a university or college; and |
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(B) the course materials for which the exemption |
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is claimed are specifically required by the instructor of a course |
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in which the student is enrolled at the university or college; and |
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(2) list the course materials for which the exemption |
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is claimed. |
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(d) The comptroller shall make the course materials sales |
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tax exemption certificate available to the public on the |
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comptroller's Internet website. |
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(e) Each university or college shall provide a copy of the |
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course materials sales tax exemption certificate to each person |
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enrolled at the university or college not later than the 21st day |
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before the date classes are scheduled to begin each semester or |
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term. |
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(f) A person making an in-person purchase of course |
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materials must present valid student identification and a completed |
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course materials sales tax exemption certificate at the time of the |
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purchase in order to receive the exemption authorized by this |
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section. |
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(g) The comptroller by rule shall prescribe the manner by |
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which a person making an online purchase of course materials may |
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electronically establish that the person is qualified to receive |
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the exemption authorized by this section. |
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SECTION 2. The change in law made by this Act applies only |
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to the sale, use, or consumption of course materials on or after |
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January 1, 2018. |
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SECTION 3. The change in law made by this Act does not |
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affect tax liability accruing before January 1, 2018. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for civil and criminal enforcement of the liability |
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for those taxes. |
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SECTION 4. This Act takes effect September 1, 2017. |