Bill Text: TX SB1633 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the sales tax treatment of a fundraising sale by a qualified organization.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-04-11 - Left pending in subcommittee [SB1633 Detail]
Download: Texas-2013-SB1633-Introduced.html
By: Deuell | S.B. No. 1633 | |
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relating to the sales tax treatment of a fundraising sale by a | ||
qualified organization. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 151.310, Tax Code, is amended by | ||
amending Subsections (c) and (d) and adding Subsections (b-1), | ||
(c-1), (c-2), and (c-3) to read as follows: | ||
(b-1) In this section: | ||
(1) "Agent in fact" means one who is authorized in | ||
writing to act as the agent of another. | ||
(2) "Market" means to offer for sale an item to be | ||
ordered. | ||
(3) "Net sales proceeds" means gross sales proceeds | ||
from the sale of a taxable item, less the cost of acquiring or | ||
making the item, delivery charges, and related expenses. | ||
(4) "Occasional" means occurring from time to time, | ||
whether at regular or irregular intervals. | ||
(5) "Fundraiser" means an occasional event in which: | ||
(A) the net sales proceeds of the event are | ||
received or retained by a qualified organization; and | ||
(B) one or more taxable or nontaxable items are: | ||
(i) sold for not longer than 14 consecutive | ||
days; or | ||
(ii) marketed for not longer than 14 | ||
consecutive days. | ||
(6) "Qualified organization" means an organization | ||
that qualifies for an exemption under Subsection (a)(1) or (a)(2) | ||
or a bona fide chapter of the organization. | ||
(c) [ |
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item the sales price of which is $5,000 or less by a qualified | ||
organization [ |
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[ |
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(1) the sale occurs in a fundraiser; and | ||
(2) the qualified organization purchases and receives | ||
delivery of the item from a wholesale supplier or distributor, and | ||
resells and delivers the item to a consumer, regardless of the | ||
sequence in which the product is marketed, purchased, received, | ||
sold and delivered by the organization. | ||
(c-1) A [ |
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donated to the qualified organization [ |
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any purchaser other than the donor. The storage, use, or | ||
consumption of a taxable item that is acquired from a qualified | ||
organization [ |
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auction and that is exempted under this subsection from the taxes | ||
imposed by Subchapter C [ |
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tax imposed by Subchapter D [ |
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resold or subsequently transferred. | ||
(c-2) A qualified organization that purchases a taxable | ||
item for resale in a fundraiser may claim the sale for resale | ||
exemption. A qualified organization is not required to hold a sales | ||
tax permit to claim the sale for resale exemption in connection with | ||
a fundraiser. | ||
(c-3) A qualified organization is considered to have | ||
purchased, as that term is defined in Section 151.005, a taxable | ||
item for resale in a fundraiser if the qualified organization | ||
receives title for consideration under a contract, purchase order, | ||
invoice, shipping document or other proof. | ||
(d) The comptroller may not regard a qualified organization | ||
that conducts a fundraiser as the agent of the organization's | ||
wholesale supplier or distributor under Section 151.024 unless the | ||
organization is the agent in fact of the supplier or distributor [ |
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SECTION 2. 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, 2013. |