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.