HBA-SEP, RKM H.B. 57 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 57
By: Oliveira
Ways & Means
3/26/2001
Introduced


BACKGROUND AND PURPOSE 

The 76th Legislature designated the first weekend in August as a sales tax
holiday.  During this period, if the governing body of a local taxing
authority does not repeal the application of the exemption, clothing and
footwear priced less than $100 is exempt from local and state sales tax if
items are purchased between 12:01 a.m. on the first Friday in August and
midnight on the following Sunday.  According to the comptroller of public
accounts, Texans saved a total of $69.6 million in sales taxes during the
first two tax holidays.  Extending the tax holiday to exempt school
supplies for use by an elementary or secondary school student would further
reduce taxes on individual households.  House Bill 57 exempts certain
school supplies of $75 or less from sales and use taxes when they are
purchased in August for use by an elementary or secondary school student.   

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 57 amends the Tax Code to exempt specified school supplies from
the sale, storage, use,  
or other consumption taxes for a limited time.  The bill provides that
school supplies are exempt if purchased for use by a student in a class in
a public or private elementary or secondary school, during a period
beginning on 12:01 a.m. on the first Friday in August and ending at
midnight on the following Sunday, and are purchased for a sales price of
less than $75 per item.  

EFFECTIVE DATE

The first day of the first calendar quarter beginning on or after passage.
If the Act does not receive the necessary vote, the Act takes effect on the
first day of the first calendar quarter beginning on or after the 91st day
after adjournment.