87R16887 SRA-F
 
  By: Metcalf, Button H.B. No. 3799
 
  Substitute the following for H.B. No. 3799:
 
  By:  Button C.S.H.B. No. 3799
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from sales and use taxes for items sold by
  a nonprofit organization at a county fair.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 151.3102, Tax Code, is amended to read as
  follows:
         Sec. 151.3102.  SALE BY NONPROFIT ORGANIZATION AT COUNTY
  FAIR. (a) The sale of a taxable item is exempt from the taxes
  imposed by this chapter if:
               (1)  the seller or retailer is a county fair
  association or another nonprofit organization that is exempt from
  federal income taxation under Section 501(a), Internal Revenue Code
  of 1986, by being listed as an exempt organization in Section
  501(c)(3) of that code;
               (2)  the sale takes place at a county fair operated by a
  county fair association on property owned by the county; and
               (3)  the purchaser is a person attending or
  participating in the fair.
         (b)  In this section:
               (1)  "County fair association" means an organization
  that is exempt from federal income taxation under Section 501(a),
  Internal Revenue Code of 1986, by being listed as an exempt
  organization in Section 501(c)(3) of that code and that organizes a
  county fair that is primarily for the exhibition of local
  horticultural or agricultural products or livestock. The term does
  not include:
                     (A)  an association that holds a license issued
  after January 1, 2001, under Subtitle A-1, Title 13, Occupations
  Code (Texas Racing Act); or
                     (B)  an association that organizes events other
  than a county fair, including an exhibition of arts and crafts or a
  state fair.
               (2)  "Livestock" includes turkeys, domesticated fowl,
  cows, sheep, swine, horses, mules, donkeys, and goats. The term
  does not include domesticated animals such as dogs, cats, guinea
  pigs, hamsters, or other similar animals.
         SECTION 2.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act. That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 3.  This Act takes effect October 1, 2021.