HBA-JLV S.B. 1678 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1678 By: Jackson Ways & Means 5/8/2001 Engrossed BACKGROUND AND PURPOSE Currently, a printed newspaper is exempt from the limited sales and use tax, but there is no statutory provision regarding exemption from taxes for a newspaper that is faxed or e-mailed. Senate Bill 1678 exempts certain electronic information services from the limited sales, excise, and use tax. 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 Senate Bill 1678 amends the Tax Code to provide that the sale of an information service is exempt from the limited sales, excise, and use tax if the service delivers its information by fax or electronic mail over the Internet, does not contain any advertisements, is issued not more than once each business day, costs less than $500 for a yearly subscription or an equivalent amount if the subscription is for a period other than once a year, and does not have more than 750 subscribers. The above provisions expire August 31, 2003. EFFECTIVE DATE July 1, 2001, or if the Act does not receive the necessary vote, the Act takes effect October 1, 2001.