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A BILL TO BE ENTITLED
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AN ACT
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relating to exempting textbooks purchased, used, or consumed by |
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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 151.3211 to read as follows: |
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Sec. 151.3211. TEXTBOOKS PURCHASED, USED, OR CONSUMED BY |
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UNIVERSITY AND COLLEGE STUDENTS FOR LIMITED PERIODS. (a) In this |
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section: |
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(1) "College" and "university" mean a private or |
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independent college or university located in this state and |
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accredited by a recognized accrediting agency. |
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(2) "Institution of higher education" and "recognized |
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accrediting agency" have the meanings assigned by Section 61.003, |
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Education Code. |
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(3) "Term" means: |
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(A) a semester, including a summer semester, for |
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an institution of higher education, college, or university that |
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operates under a semester system; and |
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(B) a quarter for an institution of higher |
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education, college, or university that operates under a quarter |
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system. |
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(b) The sale, use, or consumption of a book written, |
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designed, and produced for educational, instructional, or |
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pedagogical purposes is exempted from the taxes imposed by this |
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chapter if: |
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(1) the book is purchased by a full-time or part-time |
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student enrolled at an institution of higher education, college, or |
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university; and |
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(2) the purchase takes place at or after 12:01 a.m. on |
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the first day, but at or before 11:59 p.m. on the last day, of an |
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exemption period designated by the comptroller under Subsection |
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(c). |
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(c) The comptroller shall designate seven consecutive days |
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preceding or during the months in which the terms of institutions of |
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higher education, colleges, and universities begin during which the |
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exemption authorized by this section is effective. The comptroller |
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shall designate each exemption period for the time during which the |
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greatest number of books described by Subsection (b) is likely to be |
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purchased, as determined by the comptroller based on a review of the |
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academic calendars of institutions of higher education, colleges, |
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and universities. The comptroller shall designate the exemption |
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period in a manner and at a time that provides reasonable notice of |
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the exemption period to retailers and the public. |
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(d) A person may establish that the person is a full-time or |
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part-time student by presenting a valid student identification |
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card. The comptroller by rule shall prescribe the manner by which a |
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person making an online purchase may electronically establish that |
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the person is a full-time or part-time student. |
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SECTION 2. Notwithstanding Section 151.3211, Tax Code, as |
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added by this Act, if this Act takes effect July 1, 2019, the |
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comptroller of public accounts may not designate an exemption |
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period under that section that begins before August 1, 2019. |
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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 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 4. This Act takes effect July 1, 2019, if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for effect on that |
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date, this Act takes effect October 1, 2019. |