HBA-ALS H.B. 871 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 871
By: Goodman
Ways & Means
2/25/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, a sales tax is 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 is 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 to exempt the sale of an animal by a nonprofit animal shelter as
defined by Section 823.001, Health and Safety Code (Definitions), including
the acceptance of an adoption fee, from the sales taxes imposed by this
chapter. 

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, Article III, Texas Constitution (Time of Taking
Effect of Laws; Emergencies; Entry on Journal). 

(b) Makes application of this Act prospective.

SECTION 3.  Emergency clause.
  Effective date: upon passage.