The bill, S.B. No. 63, proposes an amendment to Section 151.318(b) of the Texas Tax Code to expand the sales and use tax exemption for certain unprocessed materials used in the manufacture of hydrocarbons. The amendment includes the addition of unprocessed sand, dirt, and gravel as exempt materials, which may undergo non-processing activities such as gathering, scooping, shaking, sorting, and washing, provided that these activities do not produce a chemical change in the materials. Additionally, the bill retains the existing exemptions for chemicals, catalysts, and cleanroom equipment used in semiconductor and pharmaceutical biotechnology manufacturing.

The bill also removes the previous mention of "and" at the end of the list of exemptions, streamlining the language. The new provisions aim to support the hydrocarbon manufacturing industry by reducing tax burdens on essential materials, thereby promoting economic growth in this sector. The bill will take effect immediately if it receives a two-thirds majority vote in both houses; otherwise, it will become effective 91 days after the legislative session concludes.

Statutes affected:
Introduced: Tax Code 151.318 (Tax Code 151)