HBA-DMD H.B. 113 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 113
By: Maxey
Agriculture & Livestock
2/8/1999
Introduced



BACKGROUND AND PURPOSE

Most back-to-school shopping for clothes and supplies occurs during August
of each year. Currently, there are no tax exemptions that would assist
parents when purchasing school clothes and supplies for their children.
This bill would exempt certain individual clothing, footwear, and school
supply items from sales tax during the month of August, with a cap of $50
per individual item.   

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 Subchapter H, Chapter 151, Tax Code, by adding Section
151.325, as follows: 

Sec. 151.325.  CLOTHING FOR CHILDREN PRIOR TO START OF SCHOOL. Exempts from
the taxes imposed by this chapter the sale of clothing and footwear during
August designed to be worn by a person younger than 13.  Provides that this
section does not apply to clothing or footwear primarily designed and used
for athletic activity or protective use, nor to accessories, including
jewelry, handbags, luggage, umbrellas, wallets, watches, and similar items.

SECTION 2.  Amends Chapter 151H, Tax Code, by adding Section 151.326, as
follows: 

Sec. 151.326.  SCHOOL SUPPLIES PRIOR TO START OF SCHOOL.  Exempts tangible
items from taxes imposed by this chapter, if the item is required for use
by a student in a class in a public or private elementary or secondary
school, on a list issued by the teacher or school prior to the beginning of
the school year, and purchased during August.  Establishes that the
purchaser must provide the seller an exemption certificate that certifies
the tangible items as exempt unless the seller maintains a separate section
or display that contains only items that qualify. 

SECTION 3.  Provides that this Act takes effect on the first day of the
first calendar quarter   
beginning on or after the date that it may take effect under Section 39,
Article III, Texas Constitution. Makes application of this Act prospective. 

SECTION 4.  Emergency clause.
            Effective date:  upon passage.