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.