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.