Sales Tax

H.B. 78 (Simpson/Eltife) – Sales Tax Exemption: exempts from sales taxes the sale of any gold, silver, or numismatic coins, or platinum, gold, or silver bullion. (Effective October 1, 2013.)

H.B. 697 (Springer/Duncan) – Sales Tax Exemption: exempts food products, meals, soft drinks, and candy from sales and use taxes if they are served or sold at an event sponsored or sanctioned by an elementary or secondary school or a school district at a concession stand operated by a booster club or other school support organization, but only if the proceeds benefit the school or school district.  (Effective September 1, 2013.)

H.B. 800 (Murphy/Deuell) – Sales Tax Exemption: this bill, among other things, provides a sales tax exemption for certain personal property used in research and development activities. (Effective January 1, 2014.)

H.B. 3169 (Bohac/Lucio) – Sales Tax Exemption: this bill: (1) broadens the types of activities that can be classified as “destination management services” for purposes of qualifying an entity as a “qualified destination management company” that is considered to be a consumer of taxable items sold as opposed to a provider of taxable services; (2) expands the types of products to be considered “intravenous systems” and “hospital beds” for sales and use tax exemption purposes; and (3) amends the definition of “newspaper” for purposes of a sales tax exemption to include a newsprint publication for which each copy over a 30-day period does not exceed $3.00. (Note: The threshold cost for an exemption under current law is $1.50.) (Effective September 1, 2013.)

H.B. 3572 (Hilderbran/Williams) – Mixed Beverage Sales Taxes: this bill, among other things: (1) lowers the mixed beverage sales tax from a rate of 14 percent on the gross receipts of a permittee to a rate of 6.7 percent; (2) imposes a tax of 8.25 percent of the sales price on each mixed beverage sold, prepared, or served by a permittee in this state and on ice and each nonalcoholic beverage sold, prepared, or served by a permittee for the purpose of being mixed with an alcoholic beverage and consumed on the premises of the permittee; and (2) requires the comptroller to issue to each incorporated city at least 10.7143 percent of tax revenue generated within the incorporated city during each quarter under the taxes described by (1) and (2), above. (Effective January 1, 2013.)

S.B. 485 (Ellis/Parker) – Sales Tax Exemption: changes the date for the current sales tax holiday for clothing and footwear to the Friday before the 15th day preceding the fourth Monday in August, without regard for any exception granted to a school district to begin instruction on a different date, and ending at midnight on the following Sunday. (Effective immediately.)

S.B. 1151 (Hinojosa/Bohac) – Sales Tax Exemption: exempts snack items from sales and use taxes, but provides that snack items that are sold through vending machines or in individual-sized portions are subject to sales and use taxes. (Effective September 1, 2013.)

S.B. 1533 (Carona/Ratliff) – Sales Tax Allocation: provides that local sales taxes may be sourced to an outlet, office, facility, or location if the outlet, office, facility, or location provides significant business services, beyond processing invoices, to the contracting business, including logistics management, purchasing, inventory control, and other vital business services. (Effective September 1, 2013.)

TML member cities may use the material herein for any purpose. 
No other person or entity may reproduce, duplicate, or distribute any part
of this document without the written authorization of the 
Texas Municipal League.

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