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.