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A BILL TO BE ENTITLED
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AN ACT
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relating to a sales and use tax exemption for United States flags |
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and Texas state flags. |
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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 151.3401 to read as follows: |
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Sec. 151.3401. CERTAIN FLAGS. (a) In this section, "flag" |
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means an emblem, banner, or other standard or a copy of an emblem, |
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banner, or standard that is an official or commonly recognized |
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depiction of the flag of the United States or of this state and is |
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capable of being flown from a staff of any character or size. The |
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term does not include a representation of a flag on a written or |
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printed document, a periodical, stationery, a painting or |
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photograph, or an article of clothing or jewelry. |
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(b) The sale of a flag is exempted from the taxes imposed by |
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this chapter if the flag is a United States flag or a state flag, as |
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described by Section 3100.001, Government Code. |
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(c) The exemption provided by this section does not apply to |
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the sale of an item that is not a flag, but on which an image of a |
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flag described by this section is displayed. |
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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 September 1, 2017. |