| 1 | 1 | | 84R1643 TJB-D |
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| 2 | 2 | | By: Zaffirini S.B. No. 157 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to exempting books purchased, used, or consumed by certain |
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| 8 | 8 | | university and college students from the sales and use tax for |
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| 9 | 9 | | limited periods. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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| 12 | 12 | | by adding Section 151.3214 to read as follows: |
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| 13 | 13 | | Sec. 151.3214. BOOKS PURCHASED, USED, OR CONSUMED BY |
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| 14 | 14 | | CERTAIN UNIVERSITY AND COLLEGE STUDENTS FOR LIMITED PERIODS. (a) |
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| 15 | 15 | | The sale, use, or consumption of a book is exempted from the taxes |
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| 16 | 16 | | imposed by this chapter if the book is: |
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| 17 | 17 | | (1) purchased by a full-time or part-time student who: |
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| 18 | 18 | | (A) is eligible under Subchapter M or P, Chapter |
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| 19 | 19 | | 56, Education Code, to receive a grant authorized by those |
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| 20 | 20 | | subchapters, regardless of whether the student actually receives |
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| 21 | 21 | | the grant; and |
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| 22 | 22 | | (B) is enrolled at an institution of higher |
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| 23 | 23 | | education as defined by Section 61.003, Education Code, or a |
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| 24 | 24 | | private or independent college or university that is located in |
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| 25 | 25 | | this state and that is accredited by a recognized accrediting |
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| 26 | 26 | | agency as defined by Section 61.003, Education Code; and |
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| 27 | 27 | | (2) the purchase takes place during a period: |
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| 28 | 28 | | (A) beginning at 12:01 a.m. on the first Monday |
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| 29 | 29 | | following the first Saturday in August and ending at 12 midnight on |
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| 30 | 30 | | the second following Wednesday; or |
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| 31 | 31 | | (B) beginning at 12:01 a.m. on the first Monday |
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| 32 | 32 | | following the first Saturday in January and ending at 12 midnight on |
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| 33 | 33 | | the second following Wednesday. |
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| 34 | 34 | | (b) Not later than the 10th day before the first day of each |
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| 35 | 35 | | period described by Subsection (a)(2), each institution, college, |
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| 36 | 36 | | and university described by Subsection (a)(1)(B) shall create for |
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| 37 | 37 | | and electronically distribute to each person described by |
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| 38 | 38 | | Subsection (a)(1) that is enrolled at the institution, college, or |
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| 39 | 39 | | university the following to be used by the person to establish that |
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| 40 | 40 | | the person is qualified to receive the exemption authorized by this |
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| 41 | 41 | | section: |
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| 42 | 42 | | (1) a unique temporary student sales tax exemption |
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| 43 | 43 | | certificate on a form prescribed by the comptroller that the person |
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| 44 | 44 | | may use when making an in-person purchase; and |
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| 45 | 45 | | (2) a unique electronic credential that the person may |
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| 46 | 46 | | use when making an online purchase. |
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| 47 | 47 | | (c) A certificate or credential distributed under |
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| 48 | 48 | | Subsection (b) is valid only for purchases made during the period |
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| 49 | 49 | | described by Subsection (a)(2)(A) or (B) that immediately follows |
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| 50 | 50 | | the distribution date of the certificate or credential. |
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| 51 | 51 | | (d) The comptroller may adopt rules necessary for the |
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| 52 | 52 | | implementation, administration, and enforcement of this section. |
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| 53 | 53 | | SECTION 2. As soon as practicable, but not later than |
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| 54 | 54 | | November 1, 2015, the comptroller of public accounts shall develop |
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| 55 | 55 | | the temporary student sales tax exemption certificate form required |
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| 56 | 56 | | by Section 151.3214(b)(1), Tax Code, as added by this Act. |
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| 57 | 57 | | SECTION 3. The change in law made by this Act does not |
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| 58 | 58 | | affect taxes imposed before the effective date of this Act, and the |
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| 59 | 59 | | law in effect before the effective date of this Act is continued in |
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| 60 | 60 | | effect for purposes of the liability for and collection of those |
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| 61 | 61 | | taxes. |
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| 62 | 62 | | SECTION 4. This Act takes effect September 1, 2015. |
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