H.B. No. 3799
AN ACT
relating to the exemption from sales and use taxes for items sold by
a nonprofit organization at a county fair.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.3102, Tax Code, is amended to read as
follows:
Sec. 151.3102. SALE BY NONPROFIT ORGANIZATION AT COUNTY
FAIR. (a) The sale of a taxable item is exempt from the taxes
imposed by this chapter if:
(1) the seller or retailer is a county fair
association or another nonprofit organization that is exempt from
federal income taxation under Section 501(a), Internal Revenue Code
of 1986, by being listed as an exempt organization in Section
501(c)(3) of that code;
(2) the sale takes place at a county fair operated by a
county fair association on property owned by the county; and
(3) the purchaser is a person attending or
participating in the fair.
(b) In this section:
(1) "County fair association" means an organization
that is exempt from federal income taxation under Section 501(a),
Internal Revenue Code of 1986, by being listed as an exempt
organization in Section 501(c)(3) of that code and that organizes a
county fair that is primarily for the exhibition of local
horticultural or agricultural products or livestock. The term does
not include:
(A) an association that holds a license issued
after January 1, 2001, under Subtitle A-1, Title 13, Occupations
Code (Texas Racing Act); or
(B) an association that organizes events other
than a county fair, including an exhibition of arts and crafts or a
state fair.
(2) "Livestock" includes turkeys, domesticated fowl,
cows, sheep, swine, horses, mules, donkeys, and goats. The term
does not include domesticated animals such as dogs, cats, guinea
pigs, hamsters, or other similar animals.
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 October 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3799 was passed by the House on April
21, 2021, by the following vote: Yeas 149, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3799 was passed by the Senate on May
18, 2021, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor