86R5271 SRA-D
By: Powell S.B. No. 833
A BILL TO BE ENTITLED
AN ACT
relating to exempting textbooks purchased, used, or consumed by
university and college students from the sales and use tax for
limited periods.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3211 to read as follows:
Sec. 151.3211. TEXTBOOKS PURCHASED, USED, OR CONSUMED BY
UNIVERSITY AND COLLEGE STUDENTS FOR LIMITED PERIODS. (a) In this
section:
(1) "College" and "university" mean a private or
independent college or university located in this state and
accredited by a recognized accrediting agency.
(2) "Institution of higher education" and "recognized
accrediting agency" have the meanings assigned by Section 61.003,
Education Code.
(3) "Term" means:
(A) a semester, including a summer semester, for
an institution of higher education, college, or university that
operates under a semester system; and
(B) a quarter for an institution of higher
education, college, or university that operates under a quarter
system.
(b) The sale, use, or consumption of a book written,
designed, and produced for educational, instructional, or
pedagogical purposes is exempted from the taxes imposed by this
chapter if:
(1) the book is purchased by a full-time or part-time
student enrolled at an institution of higher education, college, or
university; and
(2) the purchase takes place at or after 12:01 a.m. on
the first day, but at or before 11:59 p.m. on the last day, of an
exemption period designated by the comptroller under Subsection
(c).
(c) The comptroller shall designate seven consecutive days
preceding or during the months in which the terms of institutions of
higher education, colleges, and universities begin during which the
exemption authorized by this section is effective. The comptroller
shall designate each exemption period for the time during which the
greatest number of books described by Subsection (b) is likely to be
purchased, as determined by the comptroller based on a review of the
academic calendars of institutions of higher education, colleges,
and universities. The comptroller shall designate the exemption
period in a manner and at a time that provides reasonable notice of
the exemption period to retailers and the public.
(d) A person may establish that the person is a full-time or
part-time student by presenting a valid student identification
card. The comptroller by rule shall prescribe the manner by which a
person making an online purchase may electronically establish that
the person is a full-time or part-time student.
SECTION 2. Notwithstanding Section 151.3211, Tax Code, as
added by this Act, if this Act takes effect July 1, 2019, the
comptroller of public accounts may not designate an exemption
period under that section that begins before August 1, 2019.
SECTION 3. 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 4. This Act takes effect July 1, 2019, if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for effect on that
date, this Act takes effect October 1, 2019.