HBA-SEP H.B. 3025 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3025
By: Chisum
Ways & Means
4/12/2001
Introduced



BACKGROUND AND PURPOSE 

Current law exempts from sales and use tax services involved in certain
alterations of tangible personal property performed to comply with state
environmental regulations, but does not exempt services involved in
alterations of an improvement to real property.  Such a tax increases the
cost of compliance and may discourage businesses from making environmental
investments beyond those  required.  House Bill 3025 exempts from the
sales, excise, and use tax, environmental related services involved in an
improvement to real property.   

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 3025 amends the Tax Code to provide that the environmental and
conservation services involved in certain alterations of real property or
to tangible personal property are not subject to the limited sales, excise,
and use tax if the services are purchased to meet or exceed the
requirements of any commission, agency, court, or political, governmental,
or quasi-governmental entity to protect the environment.   

EFFECTIVE DATE

September 1, 2001.