85R4578 CJC-D
By: Button H.B. No. 1169
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from the sales tax for certain items sold
by small businesses in this state during a limited period.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.363 to read as follows:
Sec. 151.363. ITEMS SOLD BY CERTAIN BUSINESSES IN THIS
STATE DURING SMALL BUSINESS SATURDAY. (a) For purposes of this
section, a retailer is considered a small business for a particular
year only if:
(1) each place of business of the retailer is in this
state; and
(2) the retailer collected during the 12-month period
ending June 30 of that year and remitted to the comptroller a total
of not more than $312,500 in taxes imposed under this chapter from
all of the retailer's places of business in this state.
(b) Notwithstanding Subsection (a)(2), if a retailer has
been engaged in business in this state for less than 12 months, the
retailer is considered a small business for a particular year if the
retailer collected during the period beginning on the date the
retailer first became engaged in business in this state and ending
on June 30 and remitted to the comptroller an average of not more
than $26,042 per calendar month in taxes imposed under this chapter
from all of the retailer's places of business in this state.
(c) The sale of tangible personal property by a retailer
that is a small business is exempted from the taxes imposed by this
chapter if:
(1) the sales price of the article is not more than
$5,000; and
(2) the tangible personal property is sold during a
period beginning at 12:01 a.m. on the first Saturday after
Thanksgiving and ending at 11:59 p.m. on that day.
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, 2017.