Relating to exempting course materials purchased, used, or consumed by certain students from the sales and use tax.
Impact
If enacted, SB1159 will amend Subchapter H of Chapter 151 of the Texas Tax Code by adding a new section that outlines the criteria needed to qualify for the sales tax exemption on course materials. This summary provision clarifies that both full-time and part-time students can benefit from the exemption, thereby promoting educational access and affordability. The law is intended to support students financially, allowing them to redirect funds that would have otherwise gone towards taxes to other essential needs.
Summary
SB1159 is a legislative bill aimed at exempting certain course materials from sales and use tax in Texas. The bill specifically targets students enrolled in universities, colleges, and career schools who purchase course materials that are deemed necessary by their instructors. The proposed exemption applies to various types of tangible personal property, such as textbooks and other educational materials required for courses, thereby alleviating the financial burden on students pursuing higher education.
Contention
The primary points of contention surrounding SB1159 revolve around the implications of the tax exemption for state revenue and its potential administrative overhead. Proponents argue that the bill will facilitate educational pursuits by helping students reduce costs, thus enhancing access to higher education. However, critics may raise concerns about the possible decrease in state tax revenues and the administrative processes needed to enforce the exemption, including the development and distribution of necessary identification and certification for eligible students.