Bill Text: TX HB385 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to a sales tax exemption for certain items sold during a limited period.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-04-24 - Left pending in committee [HB385 Detail]

Download: Texas-2019-HB385-Introduced.html

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86R1652 GRM-D
By: Bohac H.B. No. 385

A BILL TO BE ENTITLED
AN ACT
relating to a sales tax exemption for certain items sold during a
limited period.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.326(a), Tax Code, is amended to read
as follows:
(a) The sale of an article of clothing or footwear designed
to be worn on or about the human body is exempted from the taxes
imposed by this chapter if:
(1) the sales price of the article is less than $200
[$100]; and
(2) the sale takes place during a period beginning at
12:01 a.m. on the Friday before the 15th day preceding the uniform
date prescribed by Section 25.0811(a), Education Code, without
regard to any exception authorized by that section, before which a
school district may not begin instruction for the school year, and
ending at 12 midnight on the following Sunday.
SECTION 2. Section 151.327(a-1), Tax Code, is amended to
read as follows:
(a-1) The sale or storage, use, or other consumption of a
school supply or a school backpack is exempted from the taxes
imposed by this chapter if the school supply or backpack is
purchased:
(1) for use by a student in a public or private
elementary or secondary school;
(2) during the period described by Section
151.326(a)(2); and
(3) for a sales price of less than $200 [$100].
SECTION 3. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3271 to read as follows:
Sec. 151.3271. CERTAIN ELECTRONIC DEVICES FOR LIMITED
PERIOD. (a) In this section:
(1) "E-reader" means a mobile electronic device that
is designed primarily for the purpose of reading digital electronic
books and periodicals.
(2) "Gaming console" means a computer or other
electronic device designed primarily for the use of playing video
games.
(3) "Personal computer" means a laptop, desktop, tower
computer system, or other personal computer that includes a central
processing unit, random access memory, a storage device, a display
monitor, and a keyboard.
(4) "Smartphone" means a mobile telephone that
performs many of the functions of a computer, is typically operated
by use of a touchscreen, has Internet access capability, and has an
operating system capable of running downloaded applications.
(5) "Tablet computer" means a mobile computer designed
for general personal computing purposes that is primarily operated
by use of a touchscreen or stylus.
(b) The sale or storage, use, or other consumption of an
e-reader, personal computer, or tablet computer is exempted from
the taxes imposed by this chapter if the e-reader, personal
computer, or tablet computer:
(1) is purchased during the period described by
Section 151.326(a)(2);
(2) has a sales price of less than $750; and
(3) is not purchased over the Internet.
(c) The exemption provided by this section does not apply to
a gaming console or smartphone.
SECTION 4. 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 5. This Act takes effect immediately 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 immediate effect, this
Act takes effect September 1, 2019.