| 1 | 1 | | 85R4578 CJC-D |
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| 2 | 2 | | By: Button H.B. No. 1169 |
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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 an exemption from the sales tax for certain items sold |
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| 8 | 8 | | by small businesses in this state during a limited period. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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| 11 | 11 | | by adding Section 151.363 to read as follows: |
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| 12 | 12 | | Sec. 151.363. ITEMS SOLD BY CERTAIN BUSINESSES IN THIS |
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| 13 | 13 | | STATE DURING SMALL BUSINESS SATURDAY. (a) For purposes of this |
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| 14 | 14 | | section, a retailer is considered a small business for a particular |
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| 15 | 15 | | year only if: |
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| 16 | 16 | | (1) each place of business of the retailer is in this |
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| 17 | 17 | | state; and |
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| 18 | 18 | | (2) the retailer collected during the 12-month period |
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| 19 | 19 | | ending June 30 of that year and remitted to the comptroller a total |
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| 20 | 20 | | of not more than $312,500 in taxes imposed under this chapter from |
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| 21 | 21 | | all of the retailer's places of business in this state. |
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| 22 | 22 | | (b) Notwithstanding Subsection (a)(2), if a retailer has |
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| 23 | 23 | | been engaged in business in this state for less than 12 months, the |
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| 24 | 24 | | retailer is considered a small business for a particular year if the |
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| 25 | 25 | | retailer collected during the period beginning on the date the |
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| 26 | 26 | | retailer first became engaged in business in this state and ending |
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| 27 | 27 | | on June 30 and remitted to the comptroller an average of not more |
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| 28 | 28 | | than $26,042 per calendar month in taxes imposed under this chapter |
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| 29 | 29 | | from all of the retailer's places of business in this state. |
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| 30 | 30 | | (c) The sale of tangible personal property by a retailer |
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| 31 | 31 | | that is a small business is exempted from the taxes imposed by this |
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| 32 | 32 | | chapter if: |
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| 33 | 33 | | (1) the sales price of the article is not more than |
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| 34 | 34 | | $5,000; and |
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| 35 | 35 | | (2) the tangible personal property is sold during a |
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| 36 | 36 | | period beginning at 12:01 a.m. on the first Saturday after |
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| 37 | 37 | | Thanksgiving and ending at 11:59 p.m. on that day. |
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| 38 | 38 | | SECTION 2. The change in law made by this Act does not |
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| 39 | 39 | | affect tax liability accruing before the effective date of this |
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| 40 | 40 | | Act. That liability continues in effect as if this Act had not been |
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| 41 | 41 | | enacted, and the former law is continued in effect for the |
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| 42 | 42 | | collection of taxes due and for civil and criminal enforcement of |
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| 43 | 43 | | the liability for those taxes. |
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| 44 | 44 | | SECTION 3. This Act takes effect September 1, 2017. |
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