| 1 | 1 | | 85R4766 TJB-D |
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| 2 | 2 | | By: Garcia S.B. No. 1159 |
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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 course materials purchased, used, or consumed |
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| 8 | 8 | | by certain students from the sales and use tax. |
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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 151.3213 to read as follows: |
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| 12 | 12 | | Sec. 151.3213. COURSE MATERIALS PURCHASED, USED, OR |
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| 13 | 13 | | CONSUMED BY UNIVERSITY AND COLLEGE STUDENTS. (a) In this section: |
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| 14 | 14 | | (1) "Course materials" means tangible personal |
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| 15 | 15 | | property required for a course at a university or college, |
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| 16 | 16 | | including textbooks, books, magazines, and other materials. |
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| 17 | 17 | | (2) "University or college" means: |
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| 18 | 18 | | (A) an institution of higher education as defined |
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| 19 | 19 | | by Section 61.003, Education Code; |
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| 20 | 20 | | (B) a private or independent college or |
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| 21 | 21 | | university that is located in this state and that is accredited by a |
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| 22 | 22 | | recognized accrediting agency as defined by Section 61.003, |
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| 23 | 23 | | Education Code; and |
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| 24 | 24 | | (C) a career school or college as defined by |
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| 25 | 25 | | Section 132.001, Education Code. |
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| 26 | 26 | | (b) The sale, use, or consumption of course materials is |
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| 27 | 27 | | exempted from the taxes imposed by this chapter if the course |
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| 28 | 28 | | materials are: |
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| 29 | 29 | | (1) purchased by a full-time or part-time student |
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| 30 | 30 | | enrolled at a university or college; and |
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| 31 | 31 | | (2) specifically required by the instructor of a |
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| 32 | 32 | | course in which the student is enrolled at the university or |
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| 33 | 33 | | college. |
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| 34 | 34 | | (c) The comptroller shall prescribe a course materials |
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| 35 | 35 | | sales tax exemption certificate to be used by a person to establish |
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| 36 | 36 | | that the person is qualified to receive the exemption authorized by |
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| 37 | 37 | | this section. In addition to any other requirement prescribed by |
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| 38 | 38 | | the comptroller, the certificate must require the person claiming |
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| 39 | 39 | | the exemption to: |
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| 40 | 40 | | (1) affirm that: |
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| 41 | 41 | | (A) the person is a full-time or part-time |
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| 42 | 42 | | student enrolled at a university or college; and |
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| 43 | 43 | | (B) the course materials for which the exemption |
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| 44 | 44 | | is claimed are specifically required by the instructor of a course |
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| 45 | 45 | | in which the student is enrolled at the university or college; and |
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| 46 | 46 | | (2) list the course materials for which the exemption |
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| 47 | 47 | | is claimed. |
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| 48 | 48 | | (d) The comptroller shall make the course materials sales |
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| 49 | 49 | | tax exemption certificate available to the public on the |
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| 50 | 50 | | comptroller's Internet website. |
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| 51 | 51 | | (e) Each university or college shall provide a copy of the |
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| 52 | 52 | | course materials sales tax exemption certificate to each person |
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| 53 | 53 | | enrolled at the university or college not later than the 21st day |
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| 54 | 54 | | before the date classes are scheduled to begin each semester or |
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| 55 | 55 | | term. |
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| 56 | 56 | | (f) A person making an in-person purchase of course |
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| 57 | 57 | | materials must present valid student identification and a completed |
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| 58 | 58 | | course materials sales tax exemption certificate at the time of the |
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| 59 | 59 | | purchase in order to receive the exemption authorized by this |
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| 60 | 60 | | section. |
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| 61 | 61 | | (g) The comptroller by rule shall prescribe the manner by |
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| 62 | 62 | | which a person making an online purchase of course materials may |
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| 63 | 63 | | electronically establish that the person is qualified to receive |
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| 64 | 64 | | the exemption authorized by this section. |
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| 65 | 65 | | SECTION 2. The change in law made by this Act applies only |
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| 66 | 66 | | to the sale, use, or consumption of course materials on or after |
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| 67 | 67 | | January 1, 2018. |
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| 68 | 68 | | SECTION 3. The change in law made by this Act does not |
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| 69 | 69 | | affect tax liability accruing before January 1, 2018. That |
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| 70 | 70 | | liability continues in effect as if this Act had not been enacted, |
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| 71 | 71 | | and the former law is continued in effect for the collection of |
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| 72 | 72 | | taxes due and for civil and criminal enforcement of the liability |
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| 73 | 73 | | for those taxes. |
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| 74 | 74 | | SECTION 4. This Act takes effect September 1, 2017. |
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