HBA-SEP, EDN H.B. 20 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 20 By: Corte Ways and Means 3/15/2001 Introduced BACKGROUND AND PURPOSE The 72nd Legislature, in an effort to find alternate tax revenue streams, added a pass through sales tax on trash collection, which is frequently a service performed by municipalities. Trash collection is often included on a customer's utility bill which is already subject to sales tax, resulting in double taxation for this basic customer need. House Bill 20 removes waste collection as a real property service that is taxable, if the service is directly provided by a municipality. 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. ANALYSIS House Bill 20 amends the Tax Code to provide that "real property service" does not include the removal or collection of garbage, rubbish, or other solid waste if such services are directly provided by a municipality. EFFECTIVE DATE July 1, 2001, or if the Act does not receive the necessary vote, the Act takes effect October 1, 2001.