HBA-JRA H.B. 1587 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1587
By: Sadler
Ways & Means
2/25/1999
Introduced



BACKGROUND AND PURPOSE 

The sales and use tax is the most significant source of tax revenue to the
state and is levied on a broad range of goods and services.  The tax is
projected to generate $27.5 billion in revenue for the state in the 2000-01
fiscal biennium.  Exempting certain health care supplies and Internet
access may produce balanced consumer tax relief while maintaining the
stability of the sales tax.  H.B. 1587 adds diapers, over-the-counter
medications, health aids, and Internet access to the list of items that are
exempt from sales 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 151.313(a), Tax Code, to delete insulin from and
add diapers to the list of items which are exempt from the taxes imposed by
this chapter (Limited Sales, Excise, and Use Tax).  Specifies that a
medical or therapeutic appliance, device, or related supplies, are also
exempt.  Deletes the condition that the appliance, device, or supplies be
dispensed or prescribed by a licensed practitioner of the healing arts. 

SECTION 2.  Amends Section 151.323, Tax Code, to include the receipts from
the sale, use, or other consumption in this state of access to the Internet
among the services exempted from the tax imposed by this chapter.  Defines
"Internet" in this section. 

SECTION 3.  Provides that this Act takes effect on the first day of the
first calendar quarter beginning on or after 90 days after adjournment.
Makes application of this Act prospective. 

SECTION 4.  Emergency clause.