HBA-AMW H.B. 3280 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3280
By: Oliveira
Ways & Means
3/22/2001
Introduced



BACKGROUND AND PURPOSE 

The 76th Legislature approved a sales tax holiday for clothing and footwear
priced under $100 that begins at 12:01 a.m. on the first Friday in August
and ends at midnight on the following Sunday.  The comptroller of public
accounts estimates that Texans saved $37 million during the 2000 sales tax
holiday and $32.6 million during the 1999 sales tax holiday.  Current law
does not exempt from sales, excise, and use taxes child safety products
purchased during the exemption period.  House Bill 3280 exempts certain
child safety products from sales, excise, and use taxes when the products
are purchased during a sales tax holiday. 

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 3280 amends the Tax Code to provide that a tangible item is
exempt from limited sales, excise, and use taxes if the sale of the item
takes place during a period beginning at 12:01 a.m. on the first Friday in
August and ending at  midnight on the following Sunday and if the sales
price of the item is less than $50 and the item is a bicycle helmet, elbow
pads, or knee pads, or the sales price of the item is less than $100 and
the item is a child passenger safety seat system. 

EFFECTIVE DATE

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