HBA-RBT H.B. 1273 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1273
By: Dutton
Ways & Means
4/8/1999
Introduced



BACKGROUND AND PURPOSE 

Current law exempts certain items from being taxed.  Food purchased for
preparation and consumption elsewhere is generally not taxable.  Some
merchants are not sure which items are exempt and are charging taxes on
items that are exempt.  H.B. 1273 requires the posting of signs listing
items that are sales-tax exempt. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the in SECTION 1 (Section 151.3015, Tax
Code) of this bill. 
 
SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter H, Chapter 151, Tax Code, by adding Section
151.3015, as follows: 

Sec.  151.3015.  REQUIREMENT FOR SIGN LISTING EXEMPTIONS.  Defines "retail
grocer."  Requires each retail grocer to post a sign in a location that is
conspicuous to all employees and customers that lists relevant items that
are exempt from the taxes imposed by this chapter.  Requires the
comptroller by rule to prescribe the design and size of the sign and the
relevant items that must be listed on the sign.  Requires the comptroller
to determine which items are relevant based on whether the item is usually
sold by retail grocers. Requires the comptroller to review the sign each
biennium to determine if the listings require amendment.  Requires the
comptroller to provide the sign to retail grocers at a reasonable charge. 

SECTION 2.  Effective date: September 1, 1999.
            Requires each retail grocer to post the required sign by
January 1, 2000. 

SECTION 3.  Emergency clause.