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, provided that these materials may undergo non-processing activities such as gathering, scooping, shaking, sorting, and washing, but do not undergo any method that produces a chemical change. Additionally, the bill clarifies that pharmaceutical biotechnology cleanrooms and equipment are exempt only if they are part of the construction of a new facility that began after July 1, 2003.

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

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