HBA-KDB, AMW H.B. 256 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 256
By: Gallego
Ways and Means
3/15/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, the cost of labor is exempt from the application of
sales, excise, and use taxes (taxes) if the labor is used to restore
personal and tangible property damaged by a disaster in a declared disaster
area.  However, the building materials used for the restoration of personal
and tangible property damaged by a disaster in a declared disaster area
(building materials) are not exempt from taxes.  House Bill 256 exempts
building materials from the taxes if the damage is not covered by a
residential property insurance policy. 

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 256 amends the Tax Code to exempt from sales, excise, and use
taxes building material that is used to repair, restore, remodel, clean, or
modify an improvement to a residence homestead within a disaster area and
that is incorporated into the homestead.  The exemption applies if the
amount of the charge for the building material is separately itemized, and
the restoration is performed on a residence damaged by the condition that
caused the area to be declared a disaster area within 18 months after the
date of declaration, and the damage is not covered by a residential
property insurance policy.   

EFFECTIVE DATE

July 1, 2001, or if the Act does not receive the necessary vote, the Act
takes effect October 1, 2001.