TITLE: Relating to a sales tax exemption for the rental of equipment used in the construction or improvement of a road or highway for a governmental entity.

SUMMARY: Relating to a sales tax exemption for the rental of equipment used in the construction or improvement of a road or highway for a governmental entity.

FULL TEXT:
AN ACT relating to a sales tax exemption for the rental of equipment used in the construction or improvement of a road or highway for a governmental entity. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 151.311, Tax Code, is amended by adding Subsection (e) to read as follows: (e) The rental of equipment for use in the performance of a contract for the construction or improvement of a road or highway, including a turnpike or toll road, by an organization exempted under Section 151.309 is exempted from the taxes imposed by this chapter. SECTION 2. The change in law made by this Act does not affect tax liability accruing before the effective date of this Act. That liability continues in effect as if this Act had not been enacted, and the former law is continued in effect for the collection of taxes due and for civil and criminal enforcement of the liability of those taxes. SECTION 3. 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.