Sec. 321.2091. TRANSITION EXEMPTION: ADDITIONAL MUNICIPAL SALES AND USE TAX. (a) The receipts from the sale, use, or rental of and the storage, use, or consumption of taxable items in this state are exempt from the adoption or increase of the additional municipal sales and use tax if the items are used:
(1) for the performance of a written contract entered into before the date the adoption or increase of the additional tax takes effect in the municipality, if the contract is not subject to change or modification by reason of the tax; or
(2) pursuant to an obligation of a bid or bids submitted prior to the date the adoption or increase of the additional tax takes effect in the municipality, if the bid or bids may not be withdrawn, modified, or changed by reason of the tax.
(b) The exemptions provided by this section have no effect after three years from the date the adoption or increase of the additional tax takes effect in the municipality.
Added by Acts 1989, 71st Leg., ch. 2, Sec. 14.14(c), eff. Aug. 28, 1989. Amended by Acts 1991, 72nd Leg., ch. 184, Sec. 5, eff. May 24, 1991.
Structure Texas Statutes
Subtitle C - Local Sales and Use Taxes
Chapter 321 - Municipal Sales and Use Tax Act
Subchapter C. Computation of Taxes
Section 321.201. Computation of Sales Taxes
Section 321.202. Method of Reporting: Retailers Having Sales Below Taxable Amount
Section 321.203. Consummation of Sale
Section 321.204. Computation of Use Tax
Section 321.205. Use Tax: Municipality in Which Use Occurs
Section 321.206. Incidence of Additional Municipal Sales and Use Tax
Section 321.207. Local Tax Inapplicable When No State Tax; Exceptions
Section 321.208. State Exemptions Applicable
Section 321.209. Transition Exemption: General Purpose Sales and Use Tax
Section 321.2091. Transition Exemption: Additional Municipal Sales and Use Tax