85R4766 TJB-D
By: Garcia S.B. No. 1159
A BILL TO BE ENTITLED
AN ACT
relating to exempting course materials purchased, used, or consumed
by certain students from the sales and use tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3213 to read as follows:
Sec. 151.3213. COURSE MATERIALS PURCHASED, USED, OR
CONSUMED BY UNIVERSITY AND COLLEGE STUDENTS. (a) In this section:
(1) "Course materials" means tangible personal
property required for a course at a university or college,
including textbooks, books, magazines, and other materials.
(2) "University or college" means:
(A) an institution of higher education as defined
by Section 61.003, Education Code;
(B) a private or independent college or
university that is located in this state and that is accredited by a
recognized accrediting agency as defined by Section 61.003,
Education Code; and
(C) a career school or college as defined by
Section 132.001, Education Code.
(b) The sale, use, or consumption of course materials is
exempted from the taxes imposed by this chapter if the course
materials are:
(1) purchased by a full-time or part-time student
enrolled at a university or college; and
(2) specifically required by the instructor of a
course in which the student is enrolled at the university or
college.
(c) The comptroller shall prescribe a course materials
sales tax exemption certificate to be used by a person to establish
that the person is qualified to receive the exemption authorized by
this section. In addition to any other requirement prescribed by
the comptroller, the certificate must require the person claiming
the exemption to:
(1) affirm that:
(A) the person is a full-time or part-time
student enrolled at a university or college; and
(B) the course materials for which the exemption
is claimed are specifically required by the instructor of a course
in which the student is enrolled at the university or college; and
(2) list the course materials for which the exemption
is claimed.
(d) The comptroller shall make the course materials sales
tax exemption certificate available to the public on the
comptroller's Internet website.
(e) Each university or college shall provide a copy of the
course materials sales tax exemption certificate to each person
enrolled at the university or college not later than the 21st day
before the date classes are scheduled to begin each semester or
term.
(f) A person making an in-person purchase of course
materials must present valid student identification and a completed
course materials sales tax exemption certificate at the time of the
purchase in order to receive the exemption authorized by this
section.
(g) The comptroller by rule shall prescribe the manner by
which a person making an online purchase of course materials may
electronically establish that the person is qualified to receive
the exemption authorized by this section.
SECTION 2. The change in law made by this Act applies only
to the sale, use, or consumption of course materials on or after
January 1, 2018.
SECTION 3. The change in law made by this Act does not
affect tax liability accruing before January 1, 2018. 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, 2017.