HBA-RAR H.B. 111 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 111 By: Maxey Ways & Means 2/3/1999 Introduced BACKGROUND & PURPOSE Currently, businesses that provide telecommunication services to private citizens obtain access to a local telephone company's network tax-free. Private citizens pay a sales tax for Internet access from these telecommunications providers. Sales and use taxes on Internet access may discourage widespread access to the Internet. As of January 1999, all but nine states have eliminated the access tax. H.B. 111 exempts access to the Internet from sales and use taxes. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 151.323, Tax Code, to add "access to the internet" to the list of telecommunication services that are exempted from sales, use, or consumption taxes. Defines "internet." SECTION 2. Effective date: 90 days after adjournment. Makes application of this Act prospective. SECTION 3. Emergency clause.