By: Zaffirini S.B. No. 1756
A BILL TO BE ENTITLED
AN ACT
relating to a sales and use tax exemption for United States flags
and Texas state flags.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3401 to read as follows:
Sec. 151.3401. CERTAIN FLAGS. (a) In this section, "flag"
means an emblem, banner, or other standard or a copy of an emblem,
banner, or standard that is an official or commonly recognized
depiction of the flag of the United States or of this state and is
capable of being flown from a staff of any character or size. The
term does not include a representation of a flag on a written or
printed document, a periodical, stationery, a painting or
photograph, or an article of clothing or jewelry.
(b) The sale of a flag is exempted from the taxes imposed by
this chapter if the flag is a United States flag or a state flag, as
described by Section 3100.001, Government Code.
(c) The exemption provided by this section does not apply to
the sale of an item that is not a flag, but on which an image of a
flag described by this section is displayed.
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.