HBA-JRA H.B. 1587 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1587 By: Sadler Ways & Means 2/25/1999 Introduced BACKGROUND AND PURPOSE The sales and use tax is the most significant source of tax revenue to the state and is levied on a broad range of goods and services. The tax is projected to generate $27.5 billion in revenue for the state in the 2000-01 fiscal biennium. Exempting certain health care supplies and Internet access may produce balanced consumer tax relief while maintaining the stability of the sales tax. H.B. 1587 adds diapers, over-the-counter medications, health aids, and Internet access to the list of items that are exempt from sales tax. 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 151.313(a), Tax Code, to delete insulin from and add diapers to the list of items which are exempt from the taxes imposed by this chapter (Limited Sales, Excise, and Use Tax). Specifies that a medical or therapeutic appliance, device, or related supplies, are also exempt. Deletes the condition that the appliance, device, or supplies be dispensed or prescribed by a licensed practitioner of the healing arts. SECTION 2. Amends Section 151.323, Tax Code, to include the receipts from the sale, use, or other consumption in this state of access to the Internet among the services exempted from the tax imposed by this chapter. Defines "Internet" in this section. SECTION 3. Provides that this Act takes effect on the first day of the first calendar quarter beginning on or after 90 days after adjournment. Makes application of this Act prospective. SECTION 4. Emergency clause.