88(R) HB 164 - Introduced version - Bill Text

	88R1912 SRA-D
	By:  Canales	H.B.  No.  164

	A BILL TO BE ENTITLED
	AN ACT
	relating to exempting textbooks purchased, used, or consumed by
	university and college students from sales and use taxes for
	limited periods.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION  1.    Subchapter H, Chapter 151, Tax Code, is amended
	by adding Section 151.3211 to read as follows:
	Sec.  151.3211.    TEXTBOOKS PURCHASED, USED, OR CONSUMED BY
	UNIVERSITY AND COLLEGE STUDENTS FOR LIMITED PERIODS. (a) In this
	section, "institution of higher education" and "recognized
	accrediting agency" have the meanings assigned by Section 61.003,
	Education Code.
	(b)    The sale, use, or consumption of a book written,
	designed, and produced for educational, instructional, or
	pedagogical purposes is exempted from the taxes imposed by this
	chapter if:
	(1)    the book is purchased by a full-time or part-time
	student enrolled at an institution of higher education or a private
	or independent college or university that is located in this state
	and that is accredited by a recognized accrediting agency; and
	(2)    the purchase takes place at or after 12:01 a.m. on
	the first day, but at or before 11:59 p.m. on the last day, of an
	exemption period designated by the comptroller under Subsection
	(c).
	(c)    The comptroller shall designate seven consecutive days
	in January and seven consecutive days in August of each year during
	which the exemption authorized by this section is effective. The
	comptroller shall designate each exemption period for the time in
	the relevant month when the greatest number of books described by
	Subsection (b) is likely to be purchased, as determined by the
	comptroller based on a review of the academic calendars of
	institutions of higher education and colleges and universities
	described by Subsection (b)(1). The comptroller shall designate the
	exemption period in a manner and at a time that provides reasonable
	notice of the exemption period to retailers and the public.
	(d)    A person may establish that the person is a full-time or
	part-time student by presenting a valid student identification
	card. The comptroller by rule shall prescribe the manner by which a
	person making an online purchase may electronically establish that
	the person is a full-time or part-time student.
	SECTION  2.    The change in law made by this Act does not
	affect taxes imposed before the effective date of this Act, and the
	law in effect before the effective date of this Act is continued in
	effect for purposes of the liability for and collection of those
	taxes.
	SECTION  3.    This Act takes effect July 1, 2023, 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 effect on that
	date, this Act takes effect October 1, 2023.