HBA-JRA H.B. 1250 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1250
By: Maxey
Ways & Means
2/25/1999
Introduced



BACKGROUND AND PURPOSE 

Nearly every Texas household has a telephone and pays approximately the
same amount for basic telephone service.  Therefore, a tax exemption on
basic phone service would benefit nearly every Texan.  H.B. 1250 exempts
basic phone service from sales 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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 151.0103, Tax Code, to provide that, for the
purposes of this title (State Taxation), the term "telecommunications
services" does not include basic local exchange telephone service.
Establishes that "basic local exchange telephone service" means the
provision by a telephone company of each access line and each dial tone to
a fixed location for sending and receiving telecommunications in the
telephone company's local exchange network.  Provides that services are
considered to be basic whether the customer has access to a private line or
party line or whether the customer has limited or unlimited access.
Provides that the term does not include longdistance telephone service or
enhanced or auxiliary services.  Makes conforming changes. 

SECTION 2.  Amends Section 57.042(9), Utilities Code, to define
"telecommunications receipts," rather than "taxable telecommunications
receipts," as taxable telecommunications receipts reported under Chapter
151 (Limited Sales, Excise, and Use Tax), Tax Code, and receipts from basic
local exchange telephone service exempted from taxation under Section
151.0103, Tax Code, that were reported under Chapter 151, Tax Code, as that
law existed on January 1, 1999. 

SECTION 3.  Amends Section 57.048(b), Utilities Code, to make conforming
changes. 

SECTION 4.  (a)  Provides that the text of Sections 57.042(9) and
57.048(b), Utilities Code, as set out in this Act, gives effect to changes
made by Chapter 145, Acts of the 75th Legislature, Regular Session, 1997,
in accordance with Section 311.031(a) (Saving Provisions), Government Code. 

(b)  Provides that this Act controls over another Act of the 76th
Legislature, Regular Session, 1999, to the extent of any conflict relating
to nonsubstantive additions or corrections in enacted codes. 

SECTION 5.  (a)  Provides that this Act takes effect on the first day of
the first calendar quarter beginning on or after 90 days after adjournment. 

(b)  Makes application of this Act prospective.

SECTION 6.  Emergency clause.