| 1 | 1 | | 88R1912 SRA-D |
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| 2 | 2 | | By: Canales H.B. No. 164 |
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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 textbooks purchased, used, or consumed by |
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| 8 | 8 | | university and college students from sales and use taxes for |
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| 9 | 9 | | limited periods. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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| 12 | 12 | | by adding Section 151.3211 to read as follows: |
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| 13 | 13 | | Sec. 151.3211. TEXTBOOKS PURCHASED, USED, OR CONSUMED BY |
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| 14 | 14 | | UNIVERSITY AND COLLEGE STUDENTS FOR LIMITED PERIODS. (a) In this |
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| 15 | 15 | | section, "institution of higher education" and "recognized |
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| 16 | 16 | | accrediting agency" have the meanings assigned by Section 61.003, |
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| 17 | 17 | | Education Code. |
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| 18 | 18 | | (b) The sale, use, or consumption of a book written, |
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| 19 | 19 | | designed, and produced for educational, instructional, or |
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| 20 | 20 | | pedagogical purposes is exempted from the taxes imposed by this |
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| 21 | 21 | | chapter if: |
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| 22 | 22 | | (1) the book is purchased by a full-time or part-time |
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| 23 | 23 | | student enrolled at an institution of higher education or a private |
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| 24 | 24 | | or independent college or university that is located in this state |
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| 25 | 25 | | and that is accredited by a recognized accrediting agency; and |
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| 26 | 26 | | (2) the purchase takes place at or after 12:01 a.m. on |
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| 27 | 27 | | the first day, but at or before 11:59 p.m. on the last day, of an |
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| 28 | 28 | | exemption period designated by the comptroller under Subsection |
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| 29 | 29 | | (c). |
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| 30 | 30 | | (c) The comptroller shall designate seven consecutive days |
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| 31 | 31 | | in January and seven consecutive days in August of each year during |
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| 32 | 32 | | which the exemption authorized by this section is effective. The |
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| 33 | 33 | | comptroller shall designate each exemption period for the time in |
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| 34 | 34 | | the relevant month when the greatest number of books described by |
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| 35 | 35 | | Subsection (b) is likely to be purchased, as determined by the |
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| 36 | 36 | | comptroller based on a review of the academic calendars of |
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| 37 | 37 | | institutions of higher education and colleges and universities |
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| 38 | 38 | | described by Subsection (b)(1). The comptroller shall designate the |
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| 39 | 39 | | exemption period in a manner and at a time that provides reasonable |
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| 40 | 40 | | notice of the exemption period to retailers and the public. |
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| 41 | 41 | | (d) A person may establish that the person is a full-time or |
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| 42 | 42 | | part-time student by presenting a valid student identification |
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| 43 | 43 | | card. The comptroller by rule shall prescribe the manner by which a |
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| 44 | 44 | | person making an online purchase may electronically establish that |
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| 45 | 45 | | the person is a full-time or part-time student. |
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| 46 | 46 | | SECTION 2. The change in law made by this Act does not |
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| 47 | 47 | | affect taxes imposed before the effective date of this Act, and the |
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| 48 | 48 | | law in effect before the effective date of this Act is continued in |
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| 49 | 49 | | effect for purposes of the liability for and collection of those |
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| 50 | 50 | | taxes. |
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| 51 | 51 | | SECTION 3. This Act takes effect July 1, 2023, if it |
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| 52 | 52 | | receives a vote of two-thirds of all the members elected to each |
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| 53 | 53 | | house, as provided by Section 39, Article III, Texas Constitution. |
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| 54 | 54 | | If this Act does not receive the vote necessary for effect on that |
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| 55 | 55 | | date, this Act takes effect October 1, 2023. |
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