HBA-RAR H.B. 111 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 111
By: Maxey
Ways & Means
2/3/1999
Introduced



BACKGROUND & PURPOSE 

Currently, businesses that provide telecommunication services  to private
citizens obtain access to a local telephone company's network tax-free.
Private citizens pay a sales tax for Internet access from these
telecommunications providers.  Sales and use taxes on Internet access may
discourage widespread access to the Internet.  As of January 1999, all but
nine states have eliminated the access tax.  H.B. 111 exempts access to the
Internet from sales and use taxes. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 151.323, Tax Code, to add  "access to the
internet" to the list of telecommunication services that are exempted from
sales, use, or consumption taxes.  Defines "internet." 

SECTION 2.  Effective date: 90 days after adjournment.  
            Makes application of this Act prospective.

SECTION 3.  Emergency clause.