HBA-GUM, ALS H.B. 871 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 871 By: Goodman Ways & Means 6/21/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Texas Legislature, a sales tax was imposed on the sale of an animal by a nonprofit animal shelter or on an adoption fee that is accepted by such a shelter. The tax was imposed even though these types of sales and fees are only utilized to recover expenses such as housing, vaccinating, spaying or neutering the animal, and preparing the animal for adoption, and not to profit the shelter. H.B. 871 exempts from the sales tax, the sale of an animal, including the acceptance of an adoption fee, by a nonprofit animal shelter. 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 Subchapter H, Chapter 151, Tax Code, by adding Section 151.343, as follows: Sec. 151.343. ANIMALS SOLD BY NONPROFIT ANIMAL SHELTERS. Exempts the sale of an animal by a nonprofit animal shelter as defined by Section 823.001 (Definitions), Health and Safety Code, including the acceptance of an adoption fee, from the sales taxes imposed by this chapter (Limited Sales, Excise, and Use Tax). SECTION 2. (a) Provides that this Act takes effect on the first day of the first calendar quarter on or after the earliest date that it may take effect under Section 39 (Time of Taking Effect of Laws; Emergencies; Entry on Journal), Article III, Texas Constitution . (b) Makes application of this Act prospective. SECTION 3. Emergency clause. Effective date: 90 days after adjournment.