| 1 | 1 | | 88R7774 CJD-D |
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| 2 | 2 | | By: Eckhardt S.B. No. 1769 |
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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 the maximum allowable cost of certain items eligible |
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| 8 | 8 | | for a sales tax exemption for a limited period. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 151.326(a), Tax Code, is amended to read |
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| 11 | 11 | | as follows: |
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| 12 | 12 | | (a) The sale of an article of clothing or footwear designed |
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| 13 | 13 | | to be worn on or about the human body is exempted from the taxes |
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| 14 | 14 | | imposed by this chapter if: |
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| 15 | 15 | | (1) the sales price of the article is less than $175 |
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| 16 | 16 | | [$100]; and |
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| 17 | 17 | | (2) the sale takes place during a period beginning at |
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| 18 | 18 | | 12:01 a.m. on the Friday before the 15th day preceding the uniform |
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| 19 | 19 | | date prescribed by Section 25.0811(a), Education Code, without |
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| 20 | 20 | | regard to any exception authorized by that section, before which a |
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| 21 | 21 | | school district may not begin instruction for the school year, and |
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| 22 | 22 | | ending at 12 midnight on the following Sunday. |
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| 23 | 23 | | SECTION 2. Section 151.327(a-1), Tax Code, is amended to |
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| 24 | 24 | | read as follows: |
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| 25 | 25 | | (a-1) The sale or storage, use, or other consumption of a |
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| 26 | 26 | | school supply or a school backpack is exempted from the taxes |
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| 27 | 27 | | imposed by this chapter if the school supply or backpack is |
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| 28 | 28 | | purchased: |
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| 29 | 29 | | (1) for use by a student in a public or private |
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| 30 | 30 | | elementary or secondary school; |
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| 31 | 31 | | (2) during the period described by Section |
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| 32 | 32 | | 151.326(a)(2); and |
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| 33 | 33 | | (3) for a sales price of less than $175 [$100]. |
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| 34 | 34 | | SECTION 3. The change in law made by this Act does not |
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| 35 | 35 | | affect tax liability accruing before the effective date of this |
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| 36 | 36 | | Act. That liability continues in effect as if this Act had not been |
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| 37 | 37 | | enacted, and the former law is continued in effect for the |
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| 38 | 38 | | collection of taxes due and for civil and criminal enforcement of |
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| 39 | 39 | | the liability for those taxes. |
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| 40 | 40 | | SECTION 4. This Act takes effect immediately if it receives |
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| 41 | 41 | | a vote of two-thirds of all the members elected to each house, as |
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| 42 | 42 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 43 | 43 | | Act does not receive the vote necessary for immediate effect, this |
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| 44 | 44 | | Act takes effect September 1, 2023. |
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