83R4130 ADM-D
By: Springer H.B. No. 697
A BILL TO BE ENTITLED
AN ACT
relating to a sales and use tax exemption for certain items sold by
school booster clubs and support organizations; authorizing a sales
and use tax exemption.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.314(d), Tax Code, is amended to read
as follows:
(d) Food products, meals, soft drinks, and candy for human
consumption are exempted from the taxes imposed by this chapter if:
(1) served by a public or private school, school
district, student organization, booster club or other school
support organization, or parent-teacher association under an
agreement with the proper school authorities in an elementary or
secondary school during the regular school day or by a
parent-teacher association during a fund-raising sale the proceeds
of which do not benefit an individual;
(2) sold by a church or at a function of a church;
(3) served to a patient or inmate of a hospital or
other institution licensed by the state for the care of humans; [or]
(4) served to a permanent resident of a retirement
facility which provides permanent housing and residence to
individuals, a majority of whom are 60 years or older; or
(5) sold during an event sponsored or sanctioned by an
elementary or secondary school or school district at a concession
stand operated by a booster club or other school support
organization formed to support the school or school district, but
only if the proceeds from the sales benefit the school or school
district.
SECTION 2. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3261 to read as follows:
Sec. 151.3261. SCHOOL SPIRIT MERCHANDISE. (a) In this
section, "school spirit merchandise" means tangible personal
property intended to be worn or displayed as a show of support for
an elementary or secondary school or school district.
(b) School spirit merchandise sold by a booster club or
other school support organization formed to support an elementary
or secondary school or school district is exempted from the taxes
imposed by this chapter if the proceeds from the sales benefit the
school or school district and the merchandise is:
(1) sold under an agreement with the proper school
authorities in an elementary or secondary school during the regular
school day; or
(2) sold during an event sponsored or sanctioned by an
elementary or secondary school or school district at a stand
operated by the booster club or other school support organization.
SECTION 3. 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 4. This Act takes effect September 1, 2013.