TITLE: Relating to a sales and use tax exemption for certain unprocessed materials used in the manufacture of hydrocarbons.

SUMMARY: Relating to a sales and use tax exemption for certain unprocessed materials used in the manufacture of hydrocarbons.

FULL TEXT:
AN ACT relating to a sales and use tax exemption for certain unprocessed materials used in the manufacture of hydrocarbons. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 151.318(b), Tax Code, is amended to read as follows: (b) The exemption includes: (1) chemicals, catalysts, and other materials that are used during a manufacturing, processing, or fabrication operation to produce or induce a chemical or physical change, to remove impurities, or to make the product more marketable; (2) semiconductor fabrication cleanrooms and equipment; [and] (3) pharmaceutical biotechnology cleanrooms and equipment that are installed as part of the construction of a new facility on which construction began after July 1, 2003;and (4) unprocessed sand, dirt, and gravel used in the manufacture of hydrocarbons, which may undergo non-processing activities that include gathering, scooping, shaking, sorting, and washing, unless some method is used to produce a chemical change in the material through these activities.SECTION 2. 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.