83R6415 BEF-D
By: Lucio III H.B. No. 3842
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from sales and use tax for certain property
purchased using money from the community development block grant
disaster recovery program and used to repair or reconstruct a real
property improvement damaged by a natural disaster.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3502 to read as follows:
Sec. 151.3502. CERTAIN MATERIALS PURCHASED UNDER COMMUNITY
DEVELOPMENT BLOCK GRANT DISASTER RECOVERY PROGRAM. (a) Tangible
personal property purchased using money from a community
development block grant disaster recovery program administered by
the General Land Office and used to repair an improvement to real
property damaged by a natural disaster or used to construct a
replacement for an improvement to real property damaged by a
natural disaster is exempted from the taxes imposed by this
chapter.
(b) The exemption provided by Subsection (a) applies to the
grant recipient, and to a person who is hired by the grant recipient
and is paid by the grant recipient using grant funds, who purchases
tangible personal property using grant funds for a purpose provided
by Subsection (a).
(c) A person who receives a tax exemption under this section
shall use an amount equal to the amount of the exemption to repair
an improvement to real property damaged by a natural disaster or to
construct a replacement for an improvement to real property damaged
by a natural disaster.
(d) The comptroller by rule may provide documentation
requirements that a person must meet to qualify for the exemption
under this section and to demonstrate that the person complies with
Subsection (c). The General Land Office shall cooperate with the
comptroller in adopting and administering those requirements if
requested by the comptroller.
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 September 1, 2013.